Ksi Lisims Locks in 20-Year LNG Contract with Santos
Ksi Lisims LNG has secured a two-decade supply agreement with Santos, adding one million tons per year to its commercial book as the project moves toward final investment.
Ksi Lisims LNG, the proposed liquefied natural gas export facility in British Columbia, has signed a heads of agreement with Australian energy major Santos. The deal secures the sale of one million metric tons per year of LNG over a twenty-year term. This agreement is structured on a Free on Board basis and remains subject to the finalization of a detailed sale and purchase agreement.
The contract represents a significant step in the project’s commercialization phase. It joins existing binding agreements with Shell, TotalEnergies, and Uniper, which collectively cover six million tons per year. With this addition, Ksi Lisims has now secured commitments for seven million tons per year, moving closer to filling its full twelve-million-ton annual capacity before seeking final investment decisions.
Expanding Global Buyer Base
The Santos deal follows a similar heads of agreement with Germany’s state-backed SEFE, also for one million tons per year over twenty years. These consecutive agreements demonstrate a broadening demand base among European and Asia-Pacific buyers. This diversification supports the project’s financial stability by reducing reliance on any single regional market.
Project Structure And Location
The onshore components of the Ksi Lisims project are a partnership between the Nisga'a Nation, Rockies LNG, and Western LNG. The facility will be situated on land owned by the Nisga'a Nation, as defined in the Nisga'a Treaty. This indigenous ownership structure is central to the project’s governance and long-term operational framework in British Columbia.
Commercial Momentum For Export
According to coverage in GN auto stocks/utilities: gas pipeline, the project is working toward completing the commercialization of its full capacity this year. The accumulation of long-term offtake contracts is a critical prerequisite for lenders and investors to commit capital. The current pipeline of agreements provides the revenue visibility necessary to justify the substantial capital expenditure required for construction.
