Shell Secures 20-Year LNG Agreement with Ksi Lisims LNG in Canada
Shell has inked an agreement to purchase two million tonnes of liquefied natural gas annually from Ksi Lisims LNG, a Canadian project's partners revealed. This move by the energy giant aims to bolster its LNG holdings in Canada. According to the partnership, the volumes will originate from the floating facility located in British Columbia and will primarily cater to customers in Asia. The British Columbia coast along the Pacific is strategically positioned near Canada's expansive Montney shale field and key Asian markets, representing major importers of this commodity.
Shell aims to boost its LNG volumes by 20% to 30% by the decade's end and holds stakes in another British Columbia project named LNG Canada. This particular project is slated to become Canada's inaugural LNG export facility, estimated to generate 14 million tonnes of LNG annually, with shipments anticipated to commence in 2025. Ksi Lisims LNG submitted an environmental certificate application to the government of British Columbia in October last year and awaits regulatory approval for the agreement.
The facility, developed jointly by the Nisga'a Nation, Rockies LNG Partnership, and Western LNG, will yield 12 million tonnes of LNG per year from two floating LNG production and storage facilities in Northwest Canada. CEO of Rockies LNG, Charlotte Raggett, expressed that the Ksi Lisims LNG endeavor aims to provide energy markets in Asia with eco-friendly, dependable energy, supporting the transition from higher-emission fuels to meet rising energy demands while fostering the growth of intermittent renewables like wind and solar.