The prospects for a second major LNG project on Canada’s West Coast took a big leap forward after oil major Shell inked a 20-year sale and purchase agreement with a consortium of natural gas producers backed by the Nisga’a First Nation.On Monday, Ksi Lisims LNG Limited Partnership announced Shell has agreed to purchase two million tonnes of LNG per year from a proposed floating terminal north of Prince Rupert near the Alaska border..“LNG is a critical pillar of global energy security and global demand is set to increase in the years to come,”Shell Energy.It represents the first commercial offtake agreement for the project, which is essential for a final investment decision later this year. If approved, the $9.9 billion project would come into service by 2030.It comes even as the federal government has vowed to reduce or even eliminate fossil fuels by 2050. Shell is clearly betting otherwise.“LNG is a critical pillar of global energy security and global demand is set to increase in the years to come,” said Steve Hill, Shell Energy’s executive vice-president.Added Charlotte Raggett, president and CEO of Rockies LNG: “Canada is an ideal global energy supplier, producing the world’s most responsible and lowest-emission natural gas at the shortest distance from Asia in the Americas.”The company applied for environmental permits with the British Columbia government in October. The Ksi Lisim consortium includes Rockies LNG, a consortium of Canadian and American natural gas producers that includes Calgary-based Tourmaline Oil and Houston-based Western LNG which includes former executives of US giant Cheniere..Coal and oil presently supply more than 70% of the primary energy demand in Asia. Replacing them with LNG would result in a reduction of global carbon emissions of more than 45 million tonnes per year or 1.3 gigatonnes over a 30-year period — equivalent to nearly two years of total carbon emissions from Canada.Alberta and BC premiers Danielle Smith and David Eby have agreed to work on ways to increase Canadian LNG exports under Article 6 of the Paris Accord.The facility will produce 12 million tonnes of LNG per annum — about two billion cubic feet per day — from two floating LNG production and storage facilities. That’s in addition to an initial 14 million tonnes per from Shell’s massive LNG Canada project near Kitimat.That facility is about 85% complete and is expected to start up later this year.
The prospects for a second major LNG project on Canada’s West Coast took a big leap forward after oil major Shell inked a 20-year sale and purchase agreement with a consortium of natural gas producers backed by the Nisga’a First Nation.On Monday, Ksi Lisims LNG Limited Partnership announced Shell has agreed to purchase two million tonnes of LNG per year from a proposed floating terminal north of Prince Rupert near the Alaska border..“LNG is a critical pillar of global energy security and global demand is set to increase in the years to come,”Shell Energy.It represents the first commercial offtake agreement for the project, which is essential for a final investment decision later this year. If approved, the $9.9 billion project would come into service by 2030.It comes even as the federal government has vowed to reduce or even eliminate fossil fuels by 2050. Shell is clearly betting otherwise.“LNG is a critical pillar of global energy security and global demand is set to increase in the years to come,” said Steve Hill, Shell Energy’s executive vice-president.Added Charlotte Raggett, president and CEO of Rockies LNG: “Canada is an ideal global energy supplier, producing the world’s most responsible and lowest-emission natural gas at the shortest distance from Asia in the Americas.”The company applied for environmental permits with the British Columbia government in October. The Ksi Lisim consortium includes Rockies LNG, a consortium of Canadian and American natural gas producers that includes Calgary-based Tourmaline Oil and Houston-based Western LNG which includes former executives of US giant Cheniere..Coal and oil presently supply more than 70% of the primary energy demand in Asia. Replacing them with LNG would result in a reduction of global carbon emissions of more than 45 million tonnes per year or 1.3 gigatonnes over a 30-year period — equivalent to nearly two years of total carbon emissions from Canada.Alberta and BC premiers Danielle Smith and David Eby have agreed to work on ways to increase Canadian LNG exports under Article 6 of the Paris Accord.The facility will produce 12 million tonnes of LNG per annum — about two billion cubic feet per day — from two floating LNG production and storage facilities. That’s in addition to an initial 14 million tonnes per from Shell’s massive LNG Canada project near Kitimat.That facility is about 85% complete and is expected to start up later this year.
