TotalEnergies secures long-term LNG agreement with Canadian Ksi Lisims project
French energy giant TotalEnergies has struck a deal to purchase liquefied natural gas (LNG) from the Ksi Lisims project in western Canada for the next two decades, the company announced in a press release.
The Sales and Purchase Agreement will see TotalEnergies import 2 million tonnes per annum (Mtpa) of LNG over a 20-year period from the planned facility on British Columbia's Pacific coast, subject to final investment decision.
In a parallel move, the French firm has acquired a 5% stake in Western LNG, the developer and future operator of the Ksi Lisims project. This investment grants TotalEnergies the option to increase its holding in Western LNG or take a direct stake in the plant of up to 10% when the final investment decision is reached.
The Ksi Lisims LNG facility, set to have a total capacity of 12 Mtpa, will benefit from strategic access to Asian markets, which represent the world's largest demand for LNG. Industry observers note that the plant's fully electrified operations, powered by hydroelectricity, position it to be among the world's lowest carbon-emitting LNG projects.
"This purchase will allow us to diversify our North American LNG portfolio and benefit from competitive supply to better serve our Asian customers," said Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies.
The agreement strengthens TotalEnergies' position as the world's third largest LNG player, with a global portfolio reaching 40 Mtpa in 2024. The company aims to increase natural gas to nearly 50% of its sales mix by 2030 as part of its carbon reduction strategy.
