Ksi Lisims LGN secures another tentative supply deal

Ksi Lisims LGN secures another tentative supply deal

Published 10:49 am Thursday, October 1, 2026

Ksi Lisims LNG−a $10 billion proposed floating natural gas liquefaction facility north of Prince Rupert−has secured another tentative supply deal ahead of a final investment decision (FID) anticipated by the end of 2026.

Centrica Energy, a UK utility, has entered into a heads of agreement (HOA) to purchase one million tonnes per annum (mtpa) of output for 20 years from the plant. A heads of agreement is a preliminary, non-binding document that outlines the core terms of a proposed business deal.

Centrica’s one mpta commitment brings the total of preliminary deals Ksi Lisims has inked to nine mtpa of the projected 12 mtpa the facility will produced if built.

“Energy security has never mattered more,” Chris O’Shea, Group Chief Executive at Centrica. “Gas will continue to play an important role through the energy transition, and this agreement adds reliable, long-term LNG supply to our global portfolio, ensuring our customers around the world get the energy they need, when and where they need it.”

Centrica owns British Gas, the UK’s largest supplier of domestic natural gas serving millions of customers across the UK.

Ksi Lisims LNG is a joint venture between Western LNG, Rockies LNG and the Nisga’a Nation and is being developed at the northern tip of Pearse Island. It is being designed to be one of the lowest emission LNG plants in the world, according to the company.

“We are pleased to enter into this Heads of Agreement with Centrica and look forward to completing a definitive SPA in the coming months,” said Davis Thames, president and CEO, of Western LNG. “The continued interest Ksi Lisims LNG is receiving from major international energy companies demonstrates the project’s strong commercial momentum as we advance toward full commercialization and a final investment decision.”

The project has also caught the attention of the federal government as it moves toward diversifying Canadian trade. It is one of the projects Prime Minister Mark Carney designated as being “in the national interest” and has been referred to the Major Projects Office for fast-tracking.

“Canada is building the infrastructure we need to become an energy superpower and a supplier of choice to our allies around the world,” said Tim Hodgson, minister of Energy and Natural Resources. “This agreement is another strong vote of confidence in Ksi Lisims LNG — a major, Indigenous-partnered project that open new markets for Canadian energy, create good jobs, and strengthen our economy.”

The project is not without its roadblocks, however, particularly over the associated Prince Rupert Gas Transmission pipeline project proposed to carry the gas from northeastern B.C. to the Ksi Lisims facility.

The pipeline−also referred to the Major Projects Office for federal fast-tracking−faces legal challenges from the Gitxsan and Gitanyow Nations.

The Gitxsan lawsuit, led Luutkudziiwus Wilp (house group) seeks to overturn the 2024 “substantially started” decision by the Environmental Assessment Office (EAO) that gave the PRGT project its environmental assessment certificate. This proceeding resulted in a reserved decision and is therefor still pending in the B.C. Supreme Court.

Meanwhile, the Gitanyow challenge, which alleged a severe breach of the Province’s “duty to consult,” was initially dismissed, but the Nation has indicated it is preparing new legal challenges.

The Haida Nation Council is also strongly opposed to the projects, citing concerns over increased tanker traffic in Haida territorial waters.