Black & Veatch, SHI win contract for Canada’s Ksi Lisims floating LNG project

US-based engineer Black & Veatch and South Korean shipbuilder Samsung Heavy Industries have won a contract for the Ksi Lisims LNG nearshore floating production facility in northwest Canada.

The Nisga’a Nation, Rockies LNG, a limited partnership comprised of Canadian natural gas producers, and Houston-based Western LNG, awarded the front-end engineering design (FEED) contract for the floating LNG project.

Black & Veatch did not reveal the price tag of the deal in a joint statement issued on Monday.

Last year, the engineering firm and SHI also won a FEED contract for Canada’s Cedar LNG project, a joint venture of Pembina Pipeline and the Haisla Nation.

Black & Veatch said the Ksi Lisims project will use a floating LNG design that improves the project economics, minimizes land impacts, and reduces construction-related risk.

With commercial operations anticipated to begin in 2028, Ksi Lisims LNG will be designed to produce up to 12 million metric tons of LNG per year for export to overseas markets, it said.

Once completed, Ksi Lisims LNG will have among the world’s lowest unit carbon emissions rates of any large-scale LNG export projects globally, the statement claims.

Through connection with British Columbia’s renewable hydroelectric grid and use of innovative design features, the project’s greenhouse gas emissions will be 90 percent lower than conventional LNG facilities, it said.

Combined with a credible offset management plan, the project expects to be net zero by 2030, the statement said.

Two FLNGs

In July 2021, the Nisga’a Nation, Rockies LNG, and Western LNG filed the initial project description for Ksi Lisims LNG with the local and state governments.

In December last year, the Canada Energy Regulator (CAR) approved an application from Ksi Lisims LNG to export LNG for a period of 40 years.

Ksi Lisims LNG plans to export up to 22.4 billion cubic meters of natural gas in the form of LNG from its proposed facility at Wil Milit located on or near the northern point of Pearse Island, British Columbia.

According to the detailed project description, the project will include two permanently installed FLNG units which will have integrated storage with an aggregate capacity of about 450,000 cbm of LNG.

The current estimated capital cost of the project is approximately C$8.3 to C$9 billion ($6.79 billion), the partners previously said.

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