Hanwha Ocean and Kanata Clean Power & Climate Technologies took a new step toward the development of energy infrastructure in North America after signing a memorandum of understanding to evaluate the construction of Kanata LNG, a floating liquefied natural gas export project (FLNG) planned for Prince Rupert, British Columbia.
The initiative contemplates a production capacity of up to 12 million tonnes per annum of LNG and an estimated investment of approximately US$15.7 billion, although final figures will depend on engineering studies, commercial agreements, and necessary regulatory approvals.
A strategic alliance for FLNG in Canada
Through this preliminary agreement, both companies will explore various technical and commercial cooperation opportunities linked to the development of the floating LNG plant.
Among the areas considered are the engineering and construction of the FLNG facilities, operation and maintenance services throughout the project’s lifespan, possible equity participation mechanisms by Hanwha Ocean, and long-term LNG supply agreements.
Furthermore, the companies will analyze logistics solutions related to the storage and transport of liquefied natural gas using LNG carriers and specialized vessels for LNG bunkering.
Prince Rupert seeks to establish itself as a gateway to Asia
The Kanata LNG project will be developed near Prince Rupert, considered the North American Pacific port closest to Northeast Asia. This strategic location could facilitate access for Canadian LNG exports to markets with growing energy demand.
Kanata intends to leverage offshore liquefaction technologies and modular construction methods to develop a scalable export capacity that can adapt to the future needs of the international market.
According to Philippe Levy, President of Hanwha Ocean’s Offshore Business Unit, Canada possesses world-class natural gas resources and meets favorable conditions to become a reliable LNG supplier for the Asia-Pacific region.
Industrial expertise to drive the project
Hanwha Ocean brings more than four decades of experience in shipbuilding and offshore energy infrastructure. The South Korean company has delivered more than 1,400 vessels worldwide and has participated in more than 280 onshore and offshore energy projects.
The company believes that FLNG solutions offer a flexible alternative to accelerate new liquefied natural gas export developments when appropriate technical, environmental, commercial, and regulatory conditions exist.
For its part, Kanata Clean Power focuses its activity on low-carbon energy projects and aims to leverage Canadian natural gas reserves in collaboration with Indigenous communities and Canada’s strategic allies in the Indo-Pacific region.
Indigenous participation and next regulatory steps
One of the project’s key components contemplates the possibility of participating First Nations acquiring up to a 50% stake in Kanata LNG. This option will be subject to negotiations, financing schemes, and corresponding authorizations.
Robert F. Delamar, CEO of Kanata, noted that the addition of Hanwha Ocean strengthens the project’s development thanks to its international capabilities in floating infrastructure, shipbuilding, and energy systems.
However, the signed memorandum remains non-binding. Any decision related to investment, construction, operations, or LNG purchase contracts will depend on additional due diligence processes, definitive agreements, and corporate approvals.
Additionally, the project must pass environmental assessments, consultations with Indigenous communities, and regulatory reviews before moving toward a final investment decision.
Source and photo: Kanata Clean Power
