South Korean shipbuilder signs MOU for $15.7 billion Prince Rupert LNG project

CALGARY — A major South Korean shipbuilding and offshore engineering company has signed a memorandum of understanding (MOU) with a Canadian energy developer to explore participation in a proposed $15.7 billion floating liquefied natural gas export project on British Columbia’s north coast.Hanwha Ocean announced Tuesday it has entered into a non-binding memorandum of understanding with Kanata Clean Power & Climate Technologies Corp. related to the proposed Kanata LNG project near Prince Rupert.The floating LNG export facility is expected to have a production capacity of up to 12 million tonnes per year and would be located at North America’s closest Pacific port to Northeast Asia.Kanata estimates the project will require approximately US$15.7 billion in capital spending, although final costs remain subject to engineering work, commercial agreements and regulatory approvals.Under the agreement, Hanwha Ocean and Kanata will examine potential cooperation in several areas, including engineering and construction of the floating LNG facility, operations and maintenance services, possible equity participation by Hanwha, long-term LNG purchase agreements and other midstream transportation solutions..South Korean defence company offers to build armoured vehicles in Canada if given RCN sub contract.“Canada has world-class natural gas resources and strong long-term potential to support reliable LNG supply to Asia-Pacific markets,” said Philippe Levy, president of Hanwha Ocean’s Energy Plant Unit.Levy said the company’s experience in floating LNG technology, offshore engineering and marine energy infrastructure could help advance the project, while cautioning that substantial work remains before any final investment decision is made.Kanata LNG is being designed as a floating export facility that would use modular construction and marine-based liquefaction technology. Project proponents say the approach could provide a scalable alternative to traditional land-based LNG developments.The company has also offered participating First Nations the opportunity to acquire up to a 50% ownership stake in the project, subject to negotiations, financing arrangements and regulatory approvals.Kanata CEO Robert Delamar described Hanwha as a key strategic partner with expertise in floating infrastructure, shipbuilding and energy systems.“We are delighted to welcome Hanwha Ocean as a strategic partner in Kanata LNG,” Delamar said..“Hanwha brings globally recognized capabilities in floating infrastructure, shipbuilding and energy systems, making it an outstanding collaborator as we advance the project.”The agreement does not commit either company to proceed with construction, financing or LNG sales arrangements. Any future partnership would require further due diligence, board approvals and binding commercial agreements.The proposed project must still undergo environmental assessments, consultations with indigenous communities and obtain regulatory approvals before construction can proceed.Hanwha Ocean noted the agreement also aligns with its broader efforts to expand industrial cooperation in Canada as the company pursues opportunities related to the federal government’s future submarine procurement program.The South Korean company is currently involved in discussions regarding Canada’s planned Canadian Patrol Submarine Program and said the Kanata LNG partnership could support its industrial and technological benefits commitments in Canada.

South Korean shipbuilder signs MOU for $15.7 billion Prince Rupert LNG project

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