Shell agrees to buy LNG from Ksi Lisims

LNG Deal

Shell has announced that it will buy two million metric tons of LPG per year from Ksi Lisims LNG. Ksi Lisims project is an LNG export facility located in British Columbia. The project will have a capacity of 12 million tons of LNG per year from two floating LNG production and storage facilities which will be probably for markets in the Pacific basin, especially by Asia markets which replace coal due to its high carbon dioxide emission. However, Reuters informed via the International Energy Agency (IEA) that increased LNG production can create a supply glut after 2025.

Second largest investment

KSI Lisims may start export in late 2028, however up to today it has not passed all regulation hurdles. The Project if built, will be the second largest in Canada right after undergoing LNG Canada project which will have production capacities of 14 million metric tons of LNG per year. The LNG Canada project should be finished by 2025.

Net-zero emission

KSI Lisims facilities will operate based on the hydro-generated electricity to achieve net-zero emission conditions by 2030 which is required by the British Columbia authorities. Davis Thames has stated that “KSI Lisims applied to the British Columbia authorities for an environmental certificate in October and may receive a decision by year-end