Ksi Lisims LNG signs up as customer for TC’s Prince Rupert Pipe System

TC Energy Corp. acquired Ksi Lisims LNG as a potential customer for the dormant but still approved pipeline through northern British Columbia (BC), the Prince Rupert Gas Transmission (PRGT) system.

Led by the Nisga’a Nation and a group of Canada’s largest natural gas producers, Ksi Lisims, has also applied for environmental approval to build a 12 MMty facility on Canada’s west coast. Information about the PRGT was published in a filing by the BC Environmental Assessment Office. The PRGT project requires 450 miles of 48-inch diameter pipeline to transport natural gas from the Montney Shale. The line, as designed, would initially deliver 2 Bcf/d and could be expanded to 3.6 Bcf/d.

According to the Ksi Lisims filing, the agreement would allow work to be carried out on the PRGT, “maintaining regulatory permits, preparing amendments for a potential on-site transfer point and developing work plans for the next phase, subject to further agreements.” …”

PRGT is a legacy of several proposals to develop LNG export terminals on BC’s Pacific coast. TC originally created a project for Pacific Northwest LNG, which was then shelved owner Petronas joined Shell plc LNG Canadanow underway in Kitimat.

PRGT’s current regulatory approval runs until November 25, 2024, but would be eligible for an extension. Ksi Lisims has a 40-year license to export 27.5 Tcf from Prince Rupert, which is 900 miles north of Vancouver.

Ksi Lisims has set a start date of 2027 for the start of gas exports, which would proceed more quickly through floating LNG facilities.

The project had a choice between two supply pipelines. Bidder Enbridge Inc. planned to use the jumbo pipeline on another route about 60 miles longer for several potential Prince Rupert export terminals.

The most recent cost estimates for the pipeline were in the $4.5 billion to $6 billion range. After accounting for gas supply, pipeline and export terminal requirements, Ksi Lisims LNG is expected to invest US$41 billion over its 40-year life.

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