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Calgary Herald
21-05-2025
- Business
- Calgary Herald
French oil giant TotalEnergies returns to Canada with bet on burgeoning LNG industry
Article content French oil major TotalEnergies SE has secured a toehold in Canada's emerging liquefied natural gas industry, signing long-term agreements with the proponents of Ksi Lisims LNG, a proposed export terminal on the northwest coast of British Columbia. Article content The deal announced Monday would see TotalEnergies purchase two million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from the Nisga'a Nation-backed project over a period of 20 years. It marks the second major offtake, or pre-purchase, agreement for the floating LNG terminal on Pearse Island, north of Prince Rupert, which signed a similar deal with global energy giant Shell in 2023. Article content Article content Locking in long-term buyers for its natural gas exports, scheduled to begin in 2029, is critical if project backers Western LNG, Rockies LNG and the Nisga'a Nation are to give the project the green light, with a final investment decision (FID) expected later this year. Article content Article content Under the agreements, TotalEnergies is also acquiring a five per cent stake in project developer, shareholder and future operator Western LNG, with the option of increasing that stake or taking a direct ownership share in the Ksi Lisims project of up to 10 per cent. Article content 'TotalEnergies is the largest purchaser of North American LNG, and one of the largest producers and portfolio players in the world,' Davis Thames, president and chief executive of Western LNG said in a statement. 'Their experience with development and operations will be a welcome addition to the project as we move steadily toward FID later this year so that we can provide reliable, low-carbon Canadian LNG to growing global markets.' Article content Article content The announcement also marks a significant return by TotalEnergies to Canada's oil and gas sector after its high-profile exit from the oilsands in 2023; at the time, the company said it was divesting its oilsands interests in order to focus on plays with lower breakeven points, in a move that was hailed by some analysts as a positive given increased investor interest in lower carbon energy. Article content
Vancouver Sun
20-05-2025
- Business
- Vancouver Sun
French oil giant TotalEnergies returns significantly to Canada with bet on burgeoning LNG industry
French oil major TotalEnergies SE has secured a toehold in Canada's emerging liquefied natural gas industry, signing long-term agreements with the proponents of Ksi Lisims LNG , a proposed export terminal on the northwest coast of British Columbia. The deal announced Monday would see TotalEnergies purchase two million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from the Nisga'a Nation-backed project over a period of 20 years. It marks the second major offtake, or pre-purchase, agreement for the floating LNG terminal on Pearse Island, north of Prince Rupert, which signed a similar deal with global energy giant Shell in 2023. Locking in long-term buyers for its natural gas exports, scheduled to begin in 2029, is critical if project backers Western LNG, Rockies LNG and the Nisga'a Nation are to give the project the green light, with a final investment decision (FID) expected later this year. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Under the agreements, TotalEnergies is also acquiring a five per cent stake in project developer, shareholder and future operator Western LNG, with the option of increasing that stake or taking a direct ownership share in the Ksi Lisims project of up to 10 per cent. 'TotalEnergies is the largest purchaser of North American LNG, and one of the largest producers and portfolio players in the world,' Davis Thames, president and chief executive of Western LNG said in a statement. 'Their experience with development and operations will be a welcome addition to the project as we move steadily toward FID later this year so that we can provide reliable, low-carbon Canadian LNG to growing global markets.' The announcement also marks a significant return by TotalEnergies to Canada's oil and gas sector after its high-profile exit from the oilsands in 2023; at the time, the company said it was divesting its oilsands interests in order to focus on plays with lower breakeven points, in a move that was hailed by some analysts as a positive given increased investor interest in lower carbon energy. Ksi Lisims will have a total export capacity of about 12 Mtpa or 1.58 billion cubic feet per day (Bcf/d) once complete and is planned to be fully electrified, powered through a tie-in to BC Hydro's planned North Coast transmission line. 'TotalEnergies shares our vision of bringing cleaner energy to the world, advancing Indigenous leadership in the global economy and sharing our deep commitment to environmental stewardship,' Eva Clayton, president of Nisga'a Lisims government said in a statement. The project is currently under review by the B.C. Environmental Assessment Office. However, the environmental review is not the only hurdle for Ksi Lisims. B.C. Environment Minister Tamara Davidson is soon expected to make a key determination on a related regulatory matter over the Prince Rupert Gas Transmission (PRGT) project, the pipeline that will supply feed gas to the Ksi Lisims LNG export terminal. While PRGT received its initial environmental permits in 2014, it was required to have been 'substantially started' by November 2024 in order to maintain its environmental certificate. The project's proponents, the Nisga'a Nation and Western LNG, say construction started in August 2024, but those claims have been challenged by some Indigenous and environmental opponents who say the activities were limited and don't meet the threshold for a substantial start. The country's largest and most advanced LNG export project remains the Shell-backed LNG Canada terminal in Kitimat B.C., the first phase of which is reportedly set to begin loading cargo in June; a second phase, which would double the facility's capacity to 3.68 Bcf/d, is still uncertain. If Ksi Lisims LNG is approved, and LNG Canada's owners green light a second phase, the country's total approved LNG export capacity could reach nearly six Bcf/d. Tourmaline Oil Corp. chief executive Michael Rose said there are multiple large Canadian gas producers lined up to supply the project through the Rockies LNG partnership. 'Hopefully, there's Canadian momentum to start approving these projects,' Rose said on a recent earnings conference call prior to TotalEngergies' announcement. 'Because (of) just how important LNG is to Canada, because it's great for the economy of the entire country; it reduces emissions in the global atmosphere and it's a great opportunity for improving Indigenous prosperity.' mpotkins@ Bookmark our website and support our journalism: Don't miss the business news you need to know — add to your bookmarks and sign up for our newsletters here.
CBC
20-05-2025
- Business
- CBC
TotalEnergies signs supply deal with proposed Ksi Lisims LNG project on B.C. coast
TotalEnergies has signed a deal to buy two million tons per year of liquefied natural gas for 20 years from the proposed Ksi Lisims LNG project on the north coast of B.C. The proposed project is a liquefied natural gas plant with a capacity of 12 million tons per year. In connection with the deal, TotalEnergies will acquire a five per cent stake in Western LNG, the developer, shareholder and future operator of the project. The French company has also been granted an option to increase its stake in Western LNG and/or take a direct stake in the plant of up to about 10 per cent once a final investment decision is made. In a statement, Davis Thames, the founder, president and CEO of Western LNG, said they're pleased to welcome TotalEnergies as an investor, describing the company as the largest buyer of North American LNG. "Their experience with development and operations will be a welcome addition to the project as we move steadily toward FID [final investment decision] later this year so that we can provide reliable, low-carbon Canadian LNG to growing global markets," Thames said. Ksi Lisims is being developed by the Nisga'a Nation, Rockies LNG Partners and Western LNG. The project submitted its application to the B.C. government for an environmental assessment certificate in October 2023. "For a quarter of a century, Nisga'a citizens have waited to see the kind of transformative opportunity our Treaty envisioned," said Eva Clayton, president of the Nisga'a Lisims government. "That's why it is especially meaningful to see Ksi Lisims LNG progressing steadily toward construction." Charlotte Raggett, president of Rockies LNG, said projects like Ksi Lisims LNG will be critical "as Canada works to diversify trade and increase our economic resilience." The TotalEnergies deal is the second offtake agreement signed by Ksi Lisims, which is still waiting for its final approval from the B.C. government. Its proponents say if it is approved in 2025, it could be online by 2029. Shell Eastern Trading Pte Ltd. signed a similar deal last year to also buy two million tons of LNG per year for 20 years.
