Canada's Ksi Lisims LNG Project Secures Third Supply Deal

The Ksi Lisims LNG project in northern British Columbia has secured its third supply deal this year. Santos Ltd., an Australian energy company, agreed to purchase nearly 10 percent of the project's capacity over 20 years.

The deal is seen as a positive sign for Canada's nascent LNG sector, which is starting to find its footing in global markets. However, analysts suggest that it may not be enough to achieve the federal government's ambitious goal of becoming the world's third-largest LNG exporter.

Canada currently aims to send roughly half of its natural gas exports to non-U.S. buyers over the next 10 years. The Ksi Lisims project, a $30-billion floating LNG facility proposed for the north coast of B.C., would become the country's second-largest LNG terminal after LNG Canada.

Despite the progress made by Ksi Lisims, new analysis from S&P Global Energy suggests that Canada remains well short of its target. The country is expected to produce around 36 million tonnes of LNG per year by 2035, which is roughly double the capacity of LNG Canada's terminal.