Hanwha Ocean Joins $15.7 Billion, 12-MMtpy LNG Project in British Columbia
Hanwha Ocean and Kanata Clean Power signed an MOU to explore development of the proposed 12-MMtpy Kanata LNG floating export project near Prince Rupert, British Columbia.
(P&GJ) — Hanwha Ocean and Kanata Clean Power & Climate Technologies have signed a non-binding memorandum of understanding (MOU) to explore cooperation on the proposed Kanata LNG floating export project near Prince Rupert, British Columbia.
The proposed floating liquefied natural gas (FLNG) facility would have export capacity of up to 12 MMtpy and is expected to require approximately $15.7 billion in capital investment, subject to final engineering, commercial agreements and regulatory approvals.
Under the agreement, the companies will evaluate opportunities related to FLNG engineering and construction, operations and maintenance, potential equity participation, long-term LNG supply arrangements and other midstream infrastructure services.
"Canada has world-class natural gas resources and strong long-term potential to support LNG supply to Asia-Pacific markets," Philippe Levy, president of Hanwha Ocean's Energy Plant Unit, said in a statement. He said the company believes floating LNG technology can provide a flexible option for new export developments where commercial, regulatory and environmental conditions support investment.
Kanata LNG is planned near Prince Rupert on Canada's West Coast and is intended to use marine-based liquefaction and modular construction to serve Asian LNG markets. The company has also proposed offering participating First Nations the opportunity to acquire up to a 50% ownership interest in the project, subject to negotiations, financing arrangements and approvals.
"We are pleased to establish this relationship with Hanwha Ocean and evaluate opportunities to advance the project," Kanata CEO Robert Delamar said.
The companies said the MOU is non-binding and that any future commitments related to construction, investment, operations or LNG offtake would require additional due diligence, definitive agreements and corporate approvals.