LNG

UK major Shell has confirmed a deal as expected to acquire the liquefied natural gas assets of Pavilion Energy, the natural gas company set up by Singapore’s wealth fund Temasek to give the Asian island state energy security.

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.

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.

The Philippines is gradually increasing its activities in the liquefied natural gas trading and tender market with the Singapore-based unit of commodities firm Trafigura winning the latest Filipino cargo tender.

FueLNG, a joint venture between Seatrium Offshore & Marine and Shell in Singapore, has completed its 100th ship-to-ship (STS) LNG bunkering operation as demand from LNG-powered vessels increases along with the expanding global fleet.

The Singapore Energy Market Authority is seeking to appoint two new official liquefied natural gas importers for the Asian city state as future natural gas use is set to expand along with its activities as a regional LNG Hub.

The Shanghai Oil and Gas Exchange (SHPGX) said that the Chinese major, China National Offshore Oil Corp., had agreed to buy two cargoes of liquefied natural gas from Royal Dutch Shell with offset carbon emissions, marking China’s first such gas purchase.

Tokyo Gas, the utility and importer of more than 12 million tonnes per annum of LNG to Japan, said it signed a preliminary LNG supply accord with the Singapore trading office of Royal Dutch Shell for the supply of cargoes at prices linked to the coal market.