Japanese trading house Itochu Corp. is in talks for a long-term contract to buy liquefied natural gas from the proposed Ksi Lisims project on Canada’s northwest coast, part of a wider push by Asian importers to secure fuel.
The deal, which could span decades, would be the second for the project, according to people familiar with the matter who asked not to be named because they’re not authorized to talk to the media. Shell Plc signed a long-term contract in January to buy LNG from the floating export facility for 20 years. The project would export 12 million metric tons a year.
Ksi Lisims LNG is backed by the Nisga’a Nation, a consortium of North American gas producers known as Rockies LNG, including Ovintiv Inc. and Tourmaline Oil Corp., and Houston-based Western LNG LLC. The estimated C$9.9 billion ($7.2 billion) project in British Columbia could begin construction this year with the site operational in late 2027 or 2028, pending a final investment decision.
Ksi Lisims, through a spokeswoman, declined to comment. A spokesperson for Itochu declined to comment. A spokesperson for Rockies LNG didn’t immediately respond.
Japan’s trading houses are exploring opportunities around the world to expand their presence in the growing LNG market amid a push by the government to increase energy security. Mitsui & Co. is considering an investment in a proposed export plant in the United Arab Emirates.
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