However, some First Nations oppose Ksi Lisims, including the Gitanyow, Gitxsan and Wet\u2019suwet\u2019en nations, whose territory the pipeline would cross for part of its route. Also opposed is a consortium of environmental groups.<\/p>\n
Related<\/p>\n
Officials said Thursday the deal \u2014 which includes an agreement for up to 20 years of deliveries, beginning in 2030 \u2014 represents an important step towards a final investment decision on the $17-billion facility.<\/p>\n
Ksi Lisims received regulatory approval last September and could be operational as early as 2029. It would carry up to 12 million tonnes of LNG per year over its 40-year lifespan.<\/p>\n
The latest deal means five of the proposed facility\u2019s 12 million tonnes of capacity are spoken for. French oil company TotalEnergies has committed to two million tonnes over 20 years and global gas giant Shell has committed to buying two million tonnes annually.<\/p>\n
It\u2019s unclear at what point a final investment decision would be made on Ksi Lisims.<\/p>\n
Deal a long-term commitment, says energy minister<\/p>\n
Located just south of the Alaska border, the project sits on well-established shipping lanes \u2014 North America\u2019s shortest marine route to energy-hungry Asian markets.<\/p>\n
For Europe, smaller shipments may flow through the Panama Canal, while larger vessels would go around South America or Africa, Hodgson said. In some cases, he added that SEFE could \u201cswap\u201d cargo with other buyers to reduce distances travelled.<\/p>\n
\u201cThat\u2019s a common practice in global energy markets,\u201d he said. \u201cThat makes production off of B.C. even more valuable, because it\u2019s not just valuable for people buying in Asia, but it makes it more and more attractive to people in Europe.\u201d<\/p>\n
Hodgson pitched Thursday\u2019s deal as a means of supporting global energy security and reducing reliance on what he called \u201ccoercive\u201d actors like Russia.<\/p>\n
Even if conflicts stabilize in the Middle East and Eastern Europe, Hodgson said the contract will hold up.<\/p>\n
\u201cTypically, you build LNG with long-term contracts in place, so once the contract is signed, there\u2019s a commitment to fill it,\u201d Hodgson said.<\/p>\n
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<\/p>\n
The Ksi Lisims LNG concept of a floating LNG liquefaction plant.<\/p>\n
If it moves forward, Ksi Lisims would be built on a site owned by the Nisga\u2019a Nation, a proponent of the project.<\/p>\n
The facility will be led by Western LNG and Rockies LNG Partners, a group of mostly Canadian independent gas producers, which sets it apart from LNG Canada, an existing liquefied natural gas project in B.C.<\/p>\n
Despite its name, LNG Canada is owned by global or state-owned Asian energy companies, including Shell plc, Petronas, PetroChina, Mitsubishi Corp. and Korea Gas Corp.<\/p>\n
For LNG Canada, most of the benefits will flow first to its equity partners, which are based outside the country. Ksi Lisims, meanwhile, is backed by Canadian producers that could fetch premium prices for their gas in Asia \u2014 and now Europe.<\/p>\n