A new floating liquefied natural gas project offshore Canada targeting net zero emissions has been proposed by a grouping of the Nisga'a Nation, Houston-based Western LNG and Canada's Rockies LNG Partners.

The Ksi Lisims LNG project will be designed to produce up to 12 million tonnes per annum of LNG and will receive approximately 1.7 billion to 2 billion cubic feet of natural gas per day.

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Commercial operations are anticipated to commence in late 2027 or 2028.

Ksi Lisims LNG, which is envisaged as a shallow-water modular FLNG scheme, would be served by two natural gas pipelines.

Both pipeline projects have already received regulatory approvals following robust environmental assessment processes and would provide gas resources in north-eastern British Columbia with connections to the proposed project site.

The selected natural gas pipeline will be owned and operated by a third party, the consortium said.

Lower emission LNG

“Fuelled by clean British Columbia hydropower and supplied by low carbon Canadian natural gas, Ksi Lisims LNG will achieve one of the world's lowest unit carbon emissions rates for a large-scale LNG export project, making net zero both feasible and achievable,” said Western LNG founder and president Davis Thames.

"Our floating design is central to delivering a project in a remote location on time and on budget, and we have commercial concepts we believe will be attractive to Pacific Basin customers.

"Together with the Nisga'a Nation and Rockies LNG, we have a tremendous opportunity to provide clean energy to the world, while creating good jobs in our neighbouring communities and economic benefits for western Canada for decades to come."

The project proponents on Monday confirmed they had filed the initial project description for the Ksi Lisims LNG project with the British Columbia provincial government and the Canadian government.

The filing is part of the ongoing first phase of engagement to ensure First Nations, local communities and the public are in dialogue with the Ksi Lisims LNG backers as project design is finalised.

Provincial, federal and Nisga'a governments have been seeking such input in scoping the environmental assessment process.

"Attracting an economic base to the Nass Valley has long been a priority for the Nisga'a Nation. This is why, for close to a decade, our Nation has worked to attract a world-leading LNG project to our treaty lands, and why we are proud to commence the formal regulatory process for our project, Ksi Lisims LNG," said Nisga'a Nation President Eva Clayton.

Wison's FEED

Western LNG in 2018 awarded China’s Wison Offshore & Marine a front-end engineering and design contract for an unidentified proposed floating liquefied natural gas project in Canada.

Wison at the time said it had signed a technical service agreement with Texas-based Western LNG to develop the basis of design and perform the FEED for a proposed FLNG project in British Columbia.

Western LNG also agreed to appoint Wison as the engineering, procurement and construction service provider should the final investment decision be taken on that project.

Zero emission pathway

Ksi Lisims LNG will target customers in Asia where currently oil and coal account for more than 70% of primary energy demand, noted the project’s proponents.

“Replacing coal and oil with LNG exported from Ksi Lisims LNG would result in a reduction of global carbon emissions of more than 45 million tonnes per year, or 1.3 gigatonnes over a 30-year period, which is equivalent to nearly two years of total carbon emissions from Canada,” the consortium said.

Ksi Lisims LNG's proposed pathway to net zero carbon emissions includes the use of renewable British Columbia hydropower in combination with strong monitoring and measurement, energy efficiency, purchase of carbon offsets and potential carbon capture and storage.

The liquefaction project is being designed to have a low level of carbon emissions, which would reduce the amount of offsets required to achieve net zero.

Ksi Lisims is currently in talks with the two parties that have already secured environmental approval for their respective proposed gas pipelines although construction would need to start by 2024 otherwise these approvals would lapse, according to local media reports.

The two pipeline options on Ksi Lisims’ radar are understood to be Enbridge’s Westcoast Connector Gas Transmission Project and TC Energy’s Prince Rupert Gas Transmission Project, which were intended for now-cancelled LNG projects near Prince Rupert.

Rockies LNG chief executive Charlotte Raggett said: "Ksi Lisims LNG will provide Canadian natural gas producers with new access to growing global energy markets and, importantly, global LNG prices.”

Nisga'a Nation

The Nisga'a Nation is claimed to be distinct among Canada's Indigenous peoples as a "self-governing, modern treaty Nation with significant, defined control of and rights over their lands" although some of these lands have been subject to historic claims of other First Nation peoples.

“The Nisga'a Nation's sites are ideally situated along the west coast of Canada with direct access to overseas markets, close proximity to approved natural gas pipeline routes and prime locations for the development of LNG projects,” added Rockies LNG Partners.

Rockies LNG Partners is a limited partnership of Canadian natural gas producers formed to advance LNG market access opportunities on the coast of British Columbia. Its partners collectively produce around 20% of Canada’s natural gas.

Western LNG is a Houston, US-based company engaged in the development of North American LNG export facilities.

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