The Ksi Lisims LNG project recently announced a deal to sell liquefied natural gas to a German utility, potentially boosting British Columbia’s yearly greenhouse gas emissions by six to eight percent, as per calculations by CBC News. The agreement entails the German utility committing to purchase one million tonnes of LNG annually from the project, which is projected to have a total annual capacity of 12 million tonnes.
Data from a 2024 report by Environment and Climate Change Canada on the project outlines estimates for emissions associated with gas extraction, transportation, construction, and facility operation. Two scenarios were presented in the report: one where the facility is connected to the B.C. Hydro grid, resulting in lower emissions, and another where the facility uses gas-generated electricity.
Under the grid-connected scenario, yearly emissions from facility construction are calculated at 58,877 tonnes of carbon dioxide equivalent, with operational emissions totaling just under 3.5 million tonnes annually. If gas is used for electricity generation, construction emissions increase to 212,109 tonnes per year, with total extraction, transport, and operation emissions exceeding 5.1 million tonnes annually.
The project, a collaboration between Western LNG, Rockies LNG Partners, and the Nisga’a Nation, signed a memorandum of understanding earlier this year to secure electricity delivery from B.C. Hydro to the proposed floating LNG facility. The government aims for the facility to achieve net-zero emissions once connected to the grid, with carbon offsets playing a role in this effort.
The B.C. government’s environmental assessment focused on emissions from facility construction and operation, omitting emissions from gas extraction and transportation, which constitute a larger portion of total emissions. Despite potential increases in provincial and national emissions, project supporters argue that Ksi Lisims could benefit the planet by replacing more polluting energy sources like coal and offering lower-emission LNG compared to imports from other countries.
However, uncertainties remain regarding the project’s net impact on global emissions, contingent on factors such as cost competitiveness, fuel source substitution, and international transitions toward net-zero emissions. The recent deal with Germany’s Securing Energy For Europe (SEFE) entails the purchase of one million tonnes of LNG annually for up to 20 years, with Ksi Lisims boasting a potential capacity of 12 million tonnes per year, pending a final investment decision.