EventAction
Shell signs a 20-year agreement to buy 2 million tonnes a year of LNG from Ksi Lisims LNG, the project's first offtake deal
Ksi Lisims LNG, a proposed floating LNG export project on Nisga'a Nation land in northern British Columbia, announced on 8 January 2024 that it had signed a 20-year sale and purchase agreement with Shell Eastern Trading, a Shell trading subsidiary, which will buy 2 million tonnes of LNG a year on a free-on-board basis. It was the project's first offtake agreement. The project, co-developed by the Nisga'a Nation, Rockies LNG and Western LNG, is planned at 12 million tonnes a year and had not yet reached a final investment decision.
- Date
- Kind
- Contract
- Where
- International
- Evidence
- Action: Something was done: a law switched on, a tariff imposed, money committed. How evidence is weighed
- Who
- Shell (acted); Ksi Lisims LNG (proponent) (counterparty)
Sources
- Ksi Lisims LNG, “Ksi Lisims LNG and Shell finalize Sale and Purchase Agreement” (external site), . source record
Projects
Claims that rest on this event
- Every signed LNG sales contract we found is for markets outside the US: BP (Woodfibre LNG), ExxonMobil's Asia-Pacific unit (Cedar LNG), and Shell, TotalEnergies and Uniper (Ksi Lisims, which has no final investment decision yet). SEFE's and Santos's deals with Ksi Lisims are non-binding.
Shell's 20-year agreement for 2 million tonnes a year is a signed sales contract at Ksi Lisims with a non-US buyer.
How it bears on the outcome
| Explanation | Fit | Why |
|---|---|---|
| O0 No meaningful speed-up | Neutral weak | A 2024 offtake for a project without an investment decision predates the pressure and says little about speed. |
| O1 Faster, but the extra output goes mostly elsewhere | Fits weak | Sale of LNG on a free-on-board basis to a global trader is consistent with output going to overseas buyers, but it predates the pressure. |
| O2 Faster, and more volume reaches the US (this level or higher) | Neutral weak | A single pre-pressure LNG offtake says little about US volumes. |
| O3 Locked-in preferential terms for the US | Neutral weak | No US preferential terms are involved. |