On Monday, French energy company TotalEnergies announced a significant agreement with Ksi Lisims LNG to purchase 2 million tons of liquefied natural gas (LNG) annually for 20 years from a planned liquefaction facility on Canada’s Pacific coast. The deal is contingent on the project’s final investment decision.

A sign with the logo of French oil and gas company TotalEnergies is pictured at a petrol station in Vertou near Nantes, France, October 26, 2022.

TotalEnergies also revealed it has acquired a 5% stake in Western LNG, the developer and future operator of the Ksi Lisims LNG project. This facility, with a capacity of 12 million tons per year, is strategically located to serve markets in Asia, the world’s largest LNG consumer. The company noted: “The project’s west coast location will provide efficient access to key Asian markets.”

The agreement includes an option for TotalEnergies to increase its stake in Western LNG or acquire up to approximately 10% of the Ksi Lisims plant itself upon the final investment decision. Financial details of the transaction were not disclosed.

The Ksi Lisims LNG project is designed to be fully electrified and powered by hydroelectricity, positioning it as one of the world’s lowest CO2-emitting LNG facilities. TotalEnergies emphasized: “This project aligns with our commitment to sustainable energy solutions.”