PARIS: TotalEnergies has signed a 20-year sales and purchase agreement with Ksi Lisims LNG to acquire 2 million metric tons per annum (Mtpa) of liquefied natural gas from the future Canadian liquefaction plant, contingent on the project’s final investment decision, the company announced Tuesday.
Alongside the agreement, TotalEnergies has acquired a 5% stake in Western LNG, the developer and future operator of Ksi Lisims LNG, with an option to increase its shareholding to approximately 10% upon the final investment decision.
Located on Canada’s Pacific coast in British Columbia, Ksi Lisims LNG is expected to produce 12 Mtpa and benefit from direct access to Asia, the world’s largest LNG market. The fully electrified facility, powered by hydroelectricity, is designed to be one of the lowest CO2-emitting LNG projects globally.
“This purchase of LNG from the future Ksi Lisims LNG plant will allow us to diversify our LNG portfolio in North America and benefit from competitive LNG supply in Western Canada to better serve our Asian customers,” said Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies. “As part of our integrated strategy, we are also pleased to partner with Western LNG to support the development of this very low CO2 emission liquefaction plant project.”
TotalEnergies, the world’s third-largest LNG player, manages a global portfolio of 40 Mt/y as of 2024, with interests in liquefaction plants across multiple regions. The company aims to increase natural gas to nearly 50% of its sales mix by 2030 while cutting carbon and methane emissions across the value chain.