Santos Next in Line to Secure LNG from Canada's Pacific Coast

---

Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Australia's Santos has reached a preliminary deal to secure LNG from Canada. Prime Minister Mark Carney is all-in on a trade diversity push to counter pressures from the United States, and LNG is emerging as an early darling for that strategy.

---

Santos to Take LNG from Ksi Lisims

Australian energy company Santos said Tuesday that supplies of liquefied natural gas (LNG) from the Pacific Coast of Canada would help it tap Asian markets hungry for secure supplies.

The Ksi Lisims project will be a floating installation off the coast of British Columbia. With completion expected before the end of the decade, the facility could have a nameplate capacity of 12 million tons per annum of gas in the liquid form. Readers can access details of the project, including construction timelines, key contact details, and equipment and service needs, by clicking here

The plant would be fed by the Prince Rupert Gas Transmission (PRGT) system, which will carry gas from shale reserves in northwestern British Columbia more than 550 miles away.

"Ksi Lisims gives us access to a high-quality, competitive cost of supply of LNG that complements our equity production," said Kevin Gallagher, the chief executive officer and managing director at Santos. "Its location on Canada's Pacific coast, access to low-cost Western Canadian natural gas and focus on lower-emissions LNG production make it an attractive addition to our portfolio."

For non-binding terms, Santos agreed to secure 1 million tons per year of LNG from Ksi Lisims over a 20-year period beginning in 2031. Ksi Lisims in May brokered an offtake agreement for 1 million tons per annum for German energy company SEFE, making it the first-ever offtake agreement with a European partner with Canada.

Canadian Elbows Up on Trade Diversity

Canadian Prime Minister Mark Carney in November included Ksi Lisims on a list of major projects meant to support the nation's economy. Since then, he's hosted a series of global economic events, from the G7 to an investment conference under way this week in Toronto.

Carney, a former central bank governor, is emerging as an international force amid a bruising trade war with the United States, the largest trading partner for Canada. Upset with U.S. efforts to make cultural demands and to have a say in future Canadian trade deals, Carney is pressing hard for economic diversity.

Carney this week hinted at establishing a special relationship with the European Union. On Sunday, he heads to France to discuss trade in energy, critical minerals and other sectors during a meeting with French President Emmanuel Macron.

Exports to France were valued at US$3.6 billion last year, making France the third-largest trading partner for Canada in the European Union, federal Canadian data show.

For the coastal province of British Columbia, Carney's strategy is paying off in terms of revenue. The provincial government said Monday that its revenue is forecast at around US$62 billion, some $565 million above expectations, but it's running a $10 billion deficit.

Aligning with Carney's trade diversification efforts, the provincial government said that exports to non-U.S. destinations were on the rise, tapping markets from South Korea to India.

Key Takeaways

• Santos looks to Canada for secure deliveries of LNG
• LNG is part of a trade diversification strategy steered by Canadian Prime Minister Mark Carney

---

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).