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A landmark agreement to export liquified natural gas from northwestern British Columbia to Germany is expected to be announced later this week by the federal government, according to sources who spoke to CBC News.
According to sources, the large-scale deal is between Ksi Lisims LNG in British Columbia and German company SEFE.
B.C. Energy Minister Adrian Dix stopped short of confirming the parties involved when speaking to reporters on Tuesday.
“Ksi Lisims has been obviously working to build markets around the world so this is their announcement,” said Dix.
“I’m not going to steal their thunder but obviously a diversity of markets, when you’re marketing your product around the world, is a good thing.”
Federal Energy Minister Tim Hodgson is set to make an announcement Wednesday morning in Vancouver regarding “international energy exports,” with details of the deal expected to be revealed.
The Ksi Lisims LNG facility was named a priority by the B.C. government and is among the major projects that Prime Minister Mark Carney said would be reviewed for fast-track permitting and approval.
According to sources, the deal — a first between Canada and Europe — is for one million metric tonnes of LNG per year.
The proposed $10-billion floating Ksi Lisims LNG facility will have a capacity to export 12 million metric tonnes of LNG per year from its location 80 kilometres north of Prince Rupert in Nisga’a Nation territory.
Ksi Lisims LNG is being developed in partnership between the Nisga’a Nation, Rockies LNG Ltd. Partnership and Western LNG. Documents show the project’s assets will be constructed, owned and operated by wholly owned subsidiaries of Western LNG, based in Houston, Texas.
Speaking at the western premiers’ meeting in Kananaskis, Alta., B.C. Premier David Eby said he was pleased with the agreement.
“Part of the work to get to a final investment decision is securing offtake agreements — that’s commitments to buy the LNG from the facility. So a major announcement with a European partner of purchasing LNG gets us that much closer,” he said.
Natural gas prices spike
Natural gas prices in Europe have spiked since the U.S.-Israel war on Iran, with analysts saying Canada could play a larger role as a supplier as a result.
Speaking from Toronto on Tuesday, federal International Trade Minister Maninder Sidhu said it was important for Canada to be a reliable, trusted partner amid the energy crisis.
“We’re getting phone calls from all around the world … we’re exploring all options, opportunities, to help our partners around the world,” he said.
The 900-kilometre Prince Rupert Gas Transmission pipeline will feed natural gas to the facility, where it will then be liquefied for export.
Sources have told CBC News that the federal government will be announcing a large-scale deal to export liquified natural gas from B.C’s northwest coast to Germany.
It was greenlighted by the B.C. Environmental Ministry last June, however, it faces opposition from First Nations and environmental groups.
Alex Walker, analytics program manager at Environmental Defence, told The Canadian Press Ksi Lisims “is not a Canadian export success story waiting to happen,” as it faces legal challenges from First Nations that have not given their consent.
“It is a high-risk, legally contested fossil fuel project that has failed for decades to attract capital,” Walker said.
“Whatever details tomorrow’s announcement may hold, the core economic, environmental, and reconciliation concerns surrounding Ksi Lisims remain unresolved.”
Electricity needed to power Ksi Lisims LNG will come from the planned North Coast Transmission Line, running about 450 kilometres from Prince George to Terrace. The line has also been named a priority by the province and federal governments.
