Ksi Lisims LNG Secures Agreements with Tribes

Ksi Lisims LNG said Tuesday it had executed "benefits agreements" with Indigenous groups that help clear the path for investors to greenlight the Canadian west coast project by yearend.

The project, with a planned capacity of 12 million metric tons per annum (MMtpa) of liquefied natural gas (LNG), is expected to become operational 2029. It would rise on Indigenous land about nine miles west of the Gingolx village, a strategic location for integration with proposed pipeline routes and access to overseas markets, according to the joint venture. Ksi Lisims LNG is a partnership between the Nisga’a Nation, Rockies LNG Partners and Western LNG.

Under one of the pacts announced Tuesday, the Lax Kw'alaams Band withdrew a federal judicial review it had initiated against Canada’s Decision Statement on Ksi Lisims LNG's Environmental Assessment Certificate, Ksi Lisims said in an online statement.

"The Benefits Agreement includes procurement opportunities which build on the Lax Kw’alaams Band's existing business capacity and interests in order to maximize meaningful participation, long-term benefits and support sustainable economic development", Ksi Lisims LNG said.

It added, "In addition to the Benefits Agreement, Lax Kw’alaams and Prince Rupert Gas Transmission Ltd [PRGT] have amended and modernized their existing Project Agreement to reflect developments since the agreement was first signed in 2017".    

With a planned capacity of about 2 billion cubic feet a day (Bcfd), expandable to around 3.6 Bcfd, PRGT would deliver gas from northeastern British Columbia to the Ksi Lisims LNG facility on Nisga'a Nation territory. PRGT was acquired by the Nisga’a Nation and Western LNG from TC Energy Corp in March 2024.

Ksi Lisims signed a separate benefits agreement with the Gitxaała Nation, which concurrently entered into a "project agreement" with PGRT. "These agreements include financial provisions, business and workforce opportunities, and support for climate initiatives", Ksi Lisims said.

"The Gitxaała Nation is proud to enter into these agreements with the Nisga’a Nation and Western LNG", said Gitxaała Nation Chief Councilor Linda Innes. "These agreements reflect the strong and longstanding relationship between our Nations and our shared commitment to supporting economic opportunities that will benefit our communities and the region for generations to come."

Ksi Lisims LNG has now also secured a benefits agreement with the Metlakatla First Nation. "The Benefits Agreement includes support for climate initiatives and sets out business opportunities intended to utilize Metlakatla’s existing expertise and strengthen capacity to deliver long-term benefits to the community and support economic independence", Ksi Lisims LNG said.

"It establishes a foundation for participation, collaboration, and shared success while recognizing the important role Indigenous leadership plays in shaping the future of our region", said Metlakatla First Nation Chief Councilor Robert Nelson.

The Metlakatla First Nation has now also amended its project agreement with PRGT signed 2015, Ksi Lisims said.

On Monday Ksi Lisims announced a preliminary agreement to supply German state-controlled power and gas utility Uniper SE with 2 MMtpa of LNG "on a long-term basis".

"Canada offers an attractive environment with significant gas resources, strong political stability and reliable regulatory frameworks", said Uniper chief executive Michael Lewis. "We see potential in projects like Ksi Lisims LNG to further enhance the resilience and flexibility of our supply portfolio".

On May 27 Ksi Lisims announced a preliminary agreement to supply another German government company. The heads of agreement with SEFE Securing Energy for Europe GmbH is for 1 MMtpa for up to 20 years. The agreement would deliver SEFE's first LNG supply from Canada, which would make Ksi Lisims LNG the first LNG project in Canada to export to Europe, according to the parties.

Last year TotalEnergies SE committed to buying 2 MMtpa for 20 years from Ksi Lisims LNG. Concurrently the French integrated energy company also agreed to acquire a 5 percent stake in Western LNG, the project's designated future operator.

"This acquisition grants TotalEnergies the option to increase its stake in Western LNG and/or take a direct stake in the plant up to approximately 10 percent when the final investment decision is made", TotalEnergies said May 19, 2025.

"This purchase of LNG from the future Ksi Lisims LNG plant will allow us to diversify our LNG portfolio in North America and benefit from competitive LNG supply in Western Canada to better serve our Asian customers, with whom we are developing a significant portfolio of long-term supply contracts", said Stéphane Michel, president for gas, renewables and power at TotalEnergies.

To contact the author, email jov.onsat@rigzone.com