Key facts
- Hanwha Ocean and Kanata Clean signed an MOU for a floating LNG export project in British Columbia.
- The project is expected to cost $15.7 billion and have a capacity of 12 million tonnes per year.
- The agreement covers engineering, construction, LNG purchase agreements, and vessel solutions.
- This project adds to other Canadian LNG export initiatives, including Ksi Lisims LNG.
South Korean shipbuilder Hanwha Ocean has entered into a Memorandum of Understanding (MoU) with developer Kanata Clean to develop a floating liquefied natural gas (FLNG) export project. The proposed facility is slated for construction near the port city of Prince Rupert in British Columbia, Canada.
The project, if finalized, is anticipated to possess a capacity of up to 12 million tonnes per year and is estimated to cost approximately $15.7 billion. The development is contingent upon final engineering assessments and securing regulatory approvals.
Under the terms of the MoU, Hanwha Ocean and Kanata Clean will collaborate on various aspects, including the engineering and construction of the FLNG facility and associated infrastructure. They will also work on long-term LNG purchase agreements and solutions for LNG carriers and bunkering vessels.
This initiative by Hanwha Ocean and Kanata Clean contributes to a growing number of Canadian LNG export projects. Earlier in June, German utility Uniper signed a letter of intent with Canada's proposed 12 million tonne/yr Ksi Lisims LNG project, with the potential to convert it into a binding sales and purchase agreement for 2 million tonnes/yr. Additionally, Ksi Lisims LNG had previously agreed with Germany's Sefe in late May to supply 1 million tonnes/yr of LNG for up to 20 years, starting in the early 2030s.
Canada's role as an LNG supplier is becoming increasingly significant for importers seeking to diversify their energy sources, particularly following disruptions to Qatar's LNG capacity. However, concerns exist regarding potential overexposure to Canadian exports, with India's top envoy to Canada recently noting that Asian importers might be wary due to the country's reputation for extensive regulation.