Hanwha Ocean has signed a non-binding agreement with Kanata Clean Power Corporation to collaborate on a proposed floating liquefied natural gas (FLNG) export facility in Prince Rupert, British Columbia.
The project, named Kanata LNG, is expected by Kanata to have an annual production capacity of up to 12 million tonnes.
Kanata estimates the total capital expenditures for the export facility at approximately $15.7 billion, subject to regulatory approvals and final engineering. Under the agreement, both parties intend to explore opportunities in engineering, construction, and long-term purchase arrangements.
The facility is designed to use modular construction and marine-based liquefaction technology to provide scalable export capacity near North America's closest Pacific port to Northeast Asia.
Additionally, Kanata has offered participating indigenous group First Nations the opportunity to acquire up to 50 per cent ownership in the project, subject to negotiations and financing.
The President of Hanwha Ocean's energy plant unit, Philippe Levy, stated that Canada has large natural gas resources with strong long-term potential to support reliable supplies to Asia-Pacific markets.
Levy added that floating liquefied natural gas can offer a "flexible and scalable pathway" for new export developments where conditions are properly aligned.
