Japanese trading house Itochu Corp. is in talks for a long-term contract to buy liquefied natural gas (LNG) 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 $9.9 billion project in British Columbia could begin construction this year with the site operational in late 2027 or 2028, pending a final investment decision.
Representatives for Itochu didn’t immediately respond to a request for comment outside of normal business hours. Spokespeople for Ksi Lisims LNG and Rockies LNG also didn’t immediately respond.
