Centrica and Ksi Lisims LNG secure 20-year LNG supply agreement

Centrica plc and Ksi Lisims LNG LP have signed a Heads of Agreement (HoA) for the sale and purchase of 1 million tonnes per year (tpy) of liquefied natural gas (LNG). The agreement, spanning 20 years, is on a free-on-board basis and remains subject to the completion of a Sale and Purchase Agreement (SPA). This deal strengthens Centrica’s LNG portfolio, ensuring reliable supply amid global energy market volatility.

Ksi Lisims LNG, a proposed 12 million tpy floating export facility in British Columbia, has now secured long-term supply agreements or HoAs covering 9 million tpy of its planned capacity. Chris O’Shea, Centrica’s Group Chief Executive, emphasized the importance of energy security, noting that gas will remain crucial during the energy transition. He praised Ksi Lisims for its lower-carbon design and partnership with the Nisga’a Nation.

Davis Thames, President and CEO of Western LNG, highlighted Centrica’s role as the UK’s largest natural gas supplier and its global LNG portfolio. He expressed enthusiasm for the HoA, anticipating the completion of a definitive SPA soon. Tim Hodgson, Canada’s Minister of Energy and Natural Resources, described the agreement as a vote of confidence in Ksi Lisims, underscoring its potential to create jobs and support Canada’s economy.

The Ksi Lisims project aims to be one of the world’s lowest-emission LNG facilities, using hydroelectric power to cut carbon intensity by up to 90%. With key environmental approvals and Project of National Interest status secured, construction could start as early as next year, with first LNG volumes expected in the early 2030s.