Houston-based Western LNG and the Nisga’a Nation, the partners in Canada’s Ksi Lisims LNG project, have agreed to buy the planned Prince Rupert pipeline project from TC Energy.
PRGT is a wholly owned subsidiary of Canada’s TC Energy and the developer of a natural gas pipeline project in British Columbia and potential delivery corridor that would further unlock Canada as a source of LNG, TC Energy said in a statement.
TC Energy, the owner of the completed Coastal GasLink pipeline, which will supply natural gas to the Shell-led LNG Canada terminal, did not reveal the price tag of the deal.
As part of the binding letter agreement, TC Energy has committed to provide transition services, on a reimbursable basis, to facilitate the seamless transition of the pipeline project and support development work planned for this year, it said.
Subject to the execution of definitive agreements and customary closing conditions, the transaction is expected to close in the second quarter of 2024, TC Energy said.
TC Energy’s Prince Rupert project project is a proposed 900 km natural gas pipeline from Hudson’s Hope to Lelu Island in B.C., Canada.
Nisga’a Nation and Western LNG said in a separate statement they intend to enter into an agreement with an “internationally respected construction manager” to build the pipeline.
“The co-developers anticipate contracting with many of the same companies that have worked on similar B.C. pipelines, benefitting from the learnings and experience gained during construction of those projects,” they said.
Nisga’a Nation, Western LNG, and also Rockies LNG, a limited partnership comprised of Canadian natural gas producers, are developing the Ksi Lisims floating LNG project in Canada.
The partners behind recently signed the first Ksi Lisims LNG long-term offtake deal with a unit of LNG giant Shell.
Under the 20-year SPA, Ksi Lisims will supply 2 million tonnes of LNG per year on a free-on-board basis to Shell Eastern Trading.
Ksi Lisims said at time at would continue to work toward reaching a final investment decision, but it did not provide any additional details.
It previously said that construction of the project is expected to take three to four years, and that commercial operations could start in 2028.
In July last year, US-based engineer Black & Veatch and South Korean shipbuilder Samsung Heavy Industries won a contract for the Ksi Lisims LNG nearshore floating production facility in northwest Canada.
Ksi Lisims LNG plans to produce 12 million tonnes per annum of LNG from two floating production facilities which will have integrated storage with an aggregate capacity of about 450,000 cbm of LNG.
The proposed facility will have an all-electric process technology developed by Black & Veatch and will be located at Wil Milit on the northern point of Pearse Island, British Columbia.
