The project is expected to have an exporting capacity of 12 million tons per year, which will make it the second biggest LNG export project facility in the country.
Canada approved the C$10 billion ($7.3 billion) Ksi Lisims project, off the coast of British Columbia, to start exporting liquefied natural gas, amid a renewed focus on fossil fuels by the administration of Prime Minister Mark Carney.
The floating LNG export facility, owned by Western LNG, a Blackstone-backed company, as well as Rockies LNG Partners and the indigenous group Nisga’a Nation, is expected to begin operations by late 2028 or early 2029. The approval marked the first major federal project approval under Canada’s new government.
The project is expected to have an exporting capacity of 12 million tons per year, which will make it the second biggest LNG export project facility in the country after Shell-backed LNG Canada, which started exports earlier this year.
“This summer, I heard from leaders across business and government that the world is looking to Canada for secure, reliable, clean energy. Today’s approval is a major step toward delivering on that promise,” Energy Minister Tim Hodgson said in a statement.
During a visit to Germany last month, he had criticized the government of former Prime Minister Justin Trudeau for “closing the door for LNG exports.” The Canadian government, under Carney, has taken a softer stance on fossil fuels to bolster the economy amid the country’s ongoing trade war with the U.S.
The move will also likely boost gas production in British Columbia, where companies such as Canadian Natural Resources, Ovintiv, and Tourmaline Oil operate. Retail sentiment on Stocktwits about Canadian Natural and Ovintiv was in the ‘bearish’ territory at the time of writing, while traders were ‘neutral’ about Tourmaline.
The 900-km Prince Rupert Gas Transmission pipeline, which will transport natural gas from gas-producing fields to the LNG facility, is already under construction.
“Ksi Lisims LNG will provide 140-160 shipments per year of low-carbon LNG to global markets, helping our allies reduce emissions by shifting away from higher-emission fuel sources, often provided by less reliable nations,” Hodgson added.
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