A US$15.7-billion floating liquefied natural gas (LNG) export project proposed for Prince Rupert has attracted one of the world’s largest shipbuilders and offshore energy companies.
South Korea-based Hanwha Ocean announced June 16 it signed a non-binding memorandum of understanding (MOU) with Vancouver-based Kanata Clean Power & Climate Technologies regarding the proposed development.
Kanata estimates the project would have an export capacity of up to 12 million tonnes of LNG annually, conceptually moving the gas from northeast B.C. by unspecified means to the coast.
Under the agreement, Hanwha Ocean and Kanata intend to explore opportunities for collaboration in engineering, construction, operations, maintenance, investment, and long-term LNG purchase arrangements.
“Canada has world-class natural gas resources and strong long-term potential to support a reliable LNG supply to Asia-Pacific markets,” said Philippe Levy, president of Hanwha Ocean’s Energy Plant Unit.
“We are pleased to establish this strategic relationship with Kanata and to explore how Hanwha Ocean’s FLNG, offshore engineering, construction, and marine energy capabilities could contribute to the proposed Kanata LNG project.”
Kanata chief executive officer Robert F. Delamar said Hanwha’s expertise in floating infrastructure, shipbuilding and energy systems makes the company a strong potential partner as the project advances.
“We are delighted to welcome Hanwha Ocean as a strategic partner in Kanata LNG through this Memorandum of Understanding,” Delamar said.
However, many questions about the proposal remain unanswered.
“The Prince Rupert Port Authority (PRPA) has no awareness of the proposed Kanata LNG project,” said James Cain, manager of corporate communications for the Prince Rupert Port Authority.
“There are currently no LNG projects being considered on lands within PRPA jurisdiction.”
The Kanata CEO agreed to talk with The Northern View, but was not immediately available as he was in transit to South Korea.
The company did provide a statement, however, that says federal, provincial and local governments, as well has First Nations holding rights and titles in the region, were given advance notice of the announcement.
“However, due to commercial, legal and other sensitivities surrounding ongoing discussions, we are not in a position to identify the specific parties we have engaged with until those discussions are completed,” the statement read.
Gitxaała Enterprises Corporation (GECO), the business arm of the Gitxaała Nation is one of the entities the partnership has approached.
“We are in preliminary conversations with the company to learn more about the project and the potential opportunity,” GECO told The Northern View.
“Any proposed project in or near the Gitxaała’s territory requires early, respectful, and meaningful consultation. We appreciate the company reaching out to us in these early stages to start a conversation and allow us to learn more about the opportunity.”
Kanata also stated that participating First Nations would have the opportunity to acquire up to a 50 per cent ownership interest in the project, subject to negotiations, financing arrangements and approvals.
Hanwha Ocean, headquartered in South Korea, employs more than 31,000 people and has delivered more than 1,400 vessels worldwide. The company says it has completed more than 280 offshore and onshore energy projects and is considered one of the world’s leading shipbuilders and offshore energy contractors.