TC Energy reports advances in LNG projects in British Columbia and surge in natural gas supplies in US
TC Energy, the leading North American natural gas pipelines operator, is moving to complete final works surrounding the link to the LNG Canada project in British Columbia while selling a pipeline gas connection to a First Nation-run venture amid an increase in US natural gas flows.
Fourth LNG project for northern British Columbia planned for Prince George and to be called Summit Lake LNG
JX LNG Canada, a privately held company registered in British Columbia, has proposed a fourth LNG export project for northern BC, adding to the already advancing LNG Canada, Cedar FLNG and another First Nation-led venture north of Prince Rupert.
The latest project proposed by JX LNG Canada is called the Summit Lake PG LNG Project and the developers have just filed to start the regulatory process.
The Summit Lake LNG venture is planned for the Caribou Region of BC and the liquefaction facility will be sited about 30 kilometres (19 miles) north of Prince George.
The Impact Assessment Agency of Canada (IAAC) and BC Environmental Assessment Office said they had started working cooperatively for the initial phase of the Summit LNG project's review.
Traditional territory
“The project will be located at the Hart North Industrial site. The site is located approximately 20km from the Lheidli-T’enneh First Nation Community, and within the traditional territory of the Lheidli-T’enneh First Nation,” said the developers JX LNG Canada.
“The project is preliminarily projected to utilize 250 hectares of land,” added JX LNG.
The company explained that a two-phase development is proposed with Phase 1 comprising the production of up to 1.35 million tonnes per annum of LNG.
The second phase would give an additional 1.35 MTPA of output for a total of 2.70 MTPA of LNG.
Commercial operations for Phase 1 are expected to commence in 2028, according to JX LNG’s initial filing for the Summit project.
At full build-out the project plans to process 355 million standard cubic feet per day of natural gas and was expected to operate for 30 years.
The Canadian and BC regulators have now invited public comments and are setting up information sessions for those in the project area and Canada at large.
“You are invited to review the initial project description and provide feedback. A summary document, in English or French, is available on the project,” said the IAAC.
Review process
“Funding provided by the Agency is now available to help Indigenous Peoples and the public participate in the impact assessment process for the proposed Summit Lake PG LNG Project north of Prince George,” the regulator added.
The other three LNG export projects in northern BC are the soon-to-start industrial-scale LNG Canada venture, the Cedar LNG project involving Pembina Pipeline Corp. and the Haisla First Nation and the Ksi Lisims LNG Partnership project.
The Ksi Lisims LNG Partnership joint venture comprises the Nisga’a Nation, Rockies LNG and Western LNG LLC.
They are proposing a floating liquefaction and export plant near the port of Prince Rupert and have signed a 20-year sale and purchase agreement with the Shell subsidiary, Shell Eastern Trading.
Under the SPA, Shell will purchase 2 MTPA of LNG per annum from the Ksi Lisims project on a free-on-board basis in what was the first LNG offtake agreement executed by the Ksi Lisims venture.
That project plans to produce 12 MTPA at Wil Milit, located north of Prince Rupert and near the Nisga’a tribal village of Gingolx.
Canada’s TC Energy gives pipeline boost to another First Nation-led LNG project in region of Prince Rupert port
TC Energy Corp., the North American pipeline operator already supplying two LNG projects with feed-gas near Kitimat in British Columbia via the Coastal GasLink, has linked up with another First Nation-backed LNG project near Prince Rupert in BC with a potential feed-gas pipeline sale deal.
Canadian First Nation-led Ksi Lisims LNG project at Prince Rupert in British Columbia finalises Shell deal
The Ksi Lisims LNG Partnership, a development joint venture of the Nisga’a Nation, Rockies LNG and Western LNG LLC for a floating liquefaction and export plant near the port of Prince Rupert in British Columbia, has signed a 20-year sale and purchase agreement with the Shell subsidiary, Shell Eastern Trading.
Under the SPA, Shell will purchase 2 million tonnes of LNG per annum from the Ksi Lisims project on a free-on-board basis in what is the first LNG offtake agreement executed by the Ksi Lisims venture.
The Ksi Lisims FLNG platform will receive feed gas from the prolific shale-gas basin of northeast BC. The venture proposes to produce 12 MTPA at Wil Milit, located north of Prince Rupert and near the Nisga’a tribal village of Gingolx.
Ksi Lisims LNG’s governance structure provides each project proponent, the Nisga’a Nation, Rockies LNG and Western LNG, with input into project development, management and operations.
Innovative
“The Ksi Lisims LNG project is an innovative development for North America” said Davis Thames, President and CEO of Western.
The project will use a floating production units built by Samsung Heavy Industries and an all-electric process technology developed by Black & Veatch.
“The strong fundamentals of our project have earned the confidence of some of the most established companies in the LNG industry. We look forward to continuing to work with Shell and our other customers as we move toward reaching a final investment decision,” Thames stated.
“Ksi Lisims LNG will play an important role in the long-term economic growth of the Nisga’a Nation and other nations with which we work and we remain committed to being good partners with them,” he explained.
Thames noted that the work with the Nisga’a Nation and Rockies LNG had produced a “unique value proposition” for customers.
Steve Hill, Executive Vice President of Shell Energy, said that LNG was a critical pillar of global energy security and global demand is set to increase in the years to come.
Diverse portfolio
“We are pleased to sign this agreement with Ksi Lisims LNG which will help Shell to continue providing diverse and flexible LNG supply to its customers,” Hill stated.
Eva Clayton, president of the Nisga’a Lisims Government said her people had been striving to grow economic opportunities.
“Ksi Lisims LNG is the cornerstone of a brighter future for our people. As the project continues to pick up momentum, evidenced by this agreement with Shell, the Nisga’a people are now able to envision the opportunity and prosperity that Ksi Lisims LNG will bring,” Clayton declared.
Ksi Lisims LNG said it was represented by international law firm Baker Botts LLP in the drafting and negotiation of the SPA.
“We’re proud to be working to deliver the world’s cleanest natural gas to markets that need it most,” said Charlotte Raggett, President and CEO of Rockies LNG.
“Canada is an ideal global energy supplier, producing the world’s most responsible and lowest-emission natural gas at the shortest distance from Asia in the Americas,” she added.
