CALGARY — British energy giant Centrica has signed a preliminary agreement to buy one million tonnes of liquefied natural gas annually from British Columbia’s proposed Ksi Lisims LNG project, bringing commitments to 75% of the facility’s planned output.The 20-year arrangement covers purchases on a free-on-board basis, meaning Centrica would take delivery at the export facility. The companies must still complete a definitive sale and purchase agreement.Ksi Lisims LNG now has long-term supply agreements or preliminary agreements covering nine million tonnes of its proposed annual capacity of 12 million tonnes.The floating export facility would be built on BC’s northwest coast through a partnership between the Nisga’a Nation, Rockies LNG and Western LNG.Centrica chief executive Chris O’Shea said the agreement would strengthen the company’s global supply portfolio amid continued volatility in energy markets.“Energy security has never mattered more. Gas will continue to play an important role through the energy transition, and this agreement adds reliable, long-term LNG supply to our global portfolio, ensuring our customers around the world get the energy they need, when and where they need it,” said O’Shea..BC's Ksi Lisims LNG signs landmark 20-year export deal with Germany.“Canada is a stable, responsible energy partner, and Ksi Lisims, with its lower-carbon design and genuine partnership with the Nisga’a Nation, is exactly the kind of project we want to back.”Centrica owns British Gas, the United Kingdom’s largest supplier of domestic natural gas, and has been expanding its international LNG portfolio.Western LNG president and CEO Davis Thames said the companies expect to complete the definitive purchase agreement in the coming months.“The continued interest Ksi Lisims LNG is receiving from major international energy companies demonstrates the project’s strong commercial momentum as we advance toward full commercialization and a final investment decision,” said Thames.Federal Energy and Natural Resources Minister Tim Hodgson welcomed the announcement, describing it as a vote of confidence in Canadian energy exports.“Canada is building the infrastructure we need to become an energy superpower and a supplier of choice to our allies around the world,” said Hodgson.He said the indigenous-partnered development would open markets for Canadian energy, create jobs and help diversify trade.The developers say Ksi Lisims would be among the world’s lowest-emission LNG facilities. Its design calls for renewable hydroelectricity from BC’s grid to power liquefaction, which they say could reduce carbon intensity by up to 90% compared with conventional plants.The project has secured key environmental approvals and federal Project of National Interest status, according to the announcement.Construction could begin as early as next year, subject to a final investment decision. The first LNG shipments are expected in the early 2030s.
