Centrica and Canada's Ksi Lisims LNG sign HoA for long-term LNG supply

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Centrica and Ksi Lisims LNG LP have entered into a Heads of Agreement (HOA) for the sale and purchase of 1 million tonnes per annum of LNG. Sales to Centrica will be on a free-on-board basis for 20 years and are subject to the completion of a Sale and Purchase Agreement.

This long-term agreement strengthens the resilience of Centrica’s LNG portfolio, adding reliable supply for its customers during a time of continued volatility in global energy markets.

With this announcement, Ksi Lisims LNG has now entered into long-term supply agreements or Heads of Agreement covering 9 mtpa of its planned 12 mtpa capacity.

Ksi Lisims LNG is a proposed 12 mtpa floating export facility located on the northwest coast of British Columbia, developed in partnership between the Nisga'a Nation, Rockies LNG, and Western LNG. It is designed to be one of the world's lowest-emission LNG projects, using renewable hydroelectricity from British Columbia's grid to power liquefaction and cut carbon intensity by up to 90 per cent versus conventional plants.

Chris O'Shea, Group Chief Executive at Centrica, said: "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.  

“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.” 

Davis Thames, President, Founder and CEO of Western LNG, said: "Centrica, through its subsidiary British Gas, is the UK's largest supplier of domestic natural gas and has played a central role in the UK's energy system for generations. Serving millions of customers across the UK, it has also built a substantial global LNG portfolio to help ensure long-term security of supply. We are pleased to enter into this Heads of Agreement with Centrica and look forward to completing a definitive SPA 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.” 

The Honourable Tim Hodgson, Minister of Energy and Natural Resources, Government of Canada, said: “Canada is building the infrastructure we need to become an energy superpower and a supplier of choice to our allies around the world. This agreement is another strong vote of confidence in Ksi Lisims LNG — a major, Indigenous-partnered project that open new markets for Canadian energy, create good jobs, and strengthen our economy. Our government is focused on getting major projects like this built, so we can diversify our trade, support our allies, and build lasting prosperity for Canadians.”  

With key environmental approvals and Project of National Interest status from the Government of Canada already secured, construction could begin as early as next year, subject to a Final Investment Decision, with first LNG volumes expected in the early 2030s.