Centrica and Ksi Lisims LNG strike 20-year LNG supply agreement
Centrica Energy and Canada's Ksi Lisims LNG have signed a Heads of Agreement (HoA) for a long-term supply of liquefied natural gas (LNG). Under the deal, Centrica will purchase 1 million tonnes per annum (mtpa) of LNG on a free-on-board basis for 20 years, subject to finalizing a Sale and Purchase Agreement. This agreement aligns with Centrica's strategy to build a resilient global LNG portfolio and strengthens its role in Asian markets.
Ksi Lisims LNG is a proposed floating export facility in British Columbia, designed to be one of the world's lowest-emission LNG projects. The facility, powered by renewable hydroelectricity, aims to reduce carbon intensity by up to 90% compared to conventional plants. With this agreement, Ksi Lisims LNG has now secured long-term supply agreements covering 9 mtpa of its planned 12 mtpa capacity.
Chris O'Shea, Group Chief Executive of Centrica, emphasized the importance of energy security and the role of gas in the energy transition. He highlighted Canada's stability as an energy partner and the lower-carbon design of the Ksi Lisims project. Davis Thames, CEO of Western LNG, noted Centrica's central role in the UK's energy system and expressed enthusiasm for the project's commercial momentum.
The Honourable Tim Hodgson, Canada's Minister of Energy and Natural Resources, praised the agreement as a vote of confidence in Ksi Lisims LNG. The project, with key environmental approvals and Project of National Interest status, could begin construction as early as next year, with first LNG volumes expected in the early 2030s.