Canada fast tracks the Ksi Lisims LNG Project
Canada announced on Thursday that it would add the proposed Ksi Lisims Liquefied Natural Gas (LNG) facility to its list of major projects for faster tracking. The company behind the project claims this designation makes the project more likely to move forward. The announcement was made by Prime Minister Mark Carney in Prince Rupert (British Columbia), where the facility will be located, with direct access to Asia. Ksi Lisims is Canada's second largest liquefied gas export terminal, after Shell-led LNG Canada which started operations in this year. Carney wants to accelerate the construction of natural resource projects to help boost an economy hurt by U.S. Tariffs.
This year, the government established a large projects office that is responsible for streamlining approvals as well as coordinating financing of large-scale infrastructure projects considered to be in the national interest.
INVESTMENT FINAL DECISION EXPECTED IN THE NEXT ANNUAL
The proponents for Ksi Lisims - Houston's Western LNG, a Canadian consortium called Rockies LNG and the Nisga’a First Nation who owns the land for the Ksi project - have not yet made a decision on whether to invest.
Western LNG CEO Davis Thames said that inclusion on Canada's list of major projects brings Ksi Lisims nearer to reality. He added that the proponents are expecting to decide if they want to move forward early next year.
Thames added that expedited permit times would reduce the likelihood of delays in construction once Ksi Lisims was under way.
He said that "time is money" and that budgets are destroyed when construction has to be stopped because a permit was not obtained in time.
Shell and TotalEnergies signed LNG purchase agreements for 20 years with Ksi Lisims. Thames stated that the company was working on finalizing other commercial agreements with LNG buyers before making a final investment commitment.
The construction of the 900 km (560 miles) Prince Rupert Gas Transmission Pipeline, which will transport gas from northeast B.C. The government had also listed Ksi LIsims on its list.
The Canadian Major Projects Office has been charged with working with Indigenous groups in order to accelerate infrastructure development.
Martin King, an analyst at RBN Energy, says that having the support of the major project office can increase the chances of a project moving forward, but it is not a guaranteed way to reach a final investment decision.
King added that "locking up the necessary financing" is another thing that must be completed.
Carney's Government said that fast-tracking of the latest round projects will spur investment in the amount of C$56 billion (39.93 billion). The North Coast Transmission Line, a C$6 billion electrification by BC Hydro expected to provide clean power to the province's mining and LNG industries and BC Hydro. Also included on the list of projects to be fast tracked is the Crawford Nickel Project in Ontario.
(source: Reuters)
