South Korea’s Hanwha Ocean has signed a non-binding memorandum of understanding (MOU) with Kanata Clean Power & Climate Technologies Corp to explore potential cooperation on the proposed development of a floating liquefied natural gas (FLNG) export project planned in Prince Rupert, British Columbia, Canada.
This strategic MoU allows the partnership to consider cooperation in the areas of engineering, construction, operations, investment and LNG procurement for the proposed project. Kanata LNG The project is in Prince Rupert, British Columbia. Kanata estimates total capital expenditure for the project at approximately US$15.7 billion, subject to final engineering and commercial arrangements and regulatory approvals. The capacity of the LNG export project is expected to reach 12 million tons annually.
Under the terms of the MOU, Hanwha Ocean and Kanata intend to explore potential opportunities for cooperation across several technical and business areas, including engineering and construction for FLNG production and related facilities; Operation and maintenance services over the operational life of the facilities; Strategic equity participation by the Korean company or its affiliated entities; long-term LNG procurement arrangements; and midstream solutions, including LNGC, LNG and more.
Philip LevyHanwha Ocean Power Plant Unit Head commented: “Canada has world-class natural gas resources and strong long-term capabilities to support reliable LNG supplies to Asia-Pacific markets. We are pleased to establish this strategic relationship with Kanata and explore how Hanwha Ocean’s FLNG, marine engineering, construction and offshore energy capabilities can contribute to the proposed Kanata LNG project.”
“Hanwha Ocean has extensive experience in delivering complex offshore energy facilities and believes that floating LNG can provide a flexible and scalable pathway for new LNG export developments where technical, commercial, environmental and regulatory conditions are properly aligned. This MoU is an important first step. Significant work remains before any final investment or project implementation decision is made, and we look forward to working with Kanata to evaluate the opportunity in a disciplined and responsible manner.”
Kanata LNG, which is being developed as a floating LNG export facility near Prince Rupert, the closest North American Pacific port to Northeast Asia, aims to leverage modular construction and offshore liquefaction technology to provide scalable export capacity.
Robert F. DelamarCEO of Kanata Clean Energy and Climate Technologies said: “We are pleased to welcome Hanwha Ocean as a strategic partner in Kanata LNG through this MOU. Hanwha offers globally recognized capabilities in floating infrastructure, shipbuilding and power systems, making it an outstanding collaborator as we move the project forward.”
Kanata also offered participating First Nations the opportunity to obtain up to 50% ownership of the project, subject to negotiations, financing arrangements and approvals in place.
The proposed Kanata LNG project remains subject to numerous approvals and conditions, including environmental assessments, engagement with Indigenous communities, regulatory approvals, and the negotiation and implementation of final commercial agreements.
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