Shell has signed a 20-year LNG supply agreement with a new Canadian project

Shell has signed a long-term agreement to buy LNG from Canada's Ksi Lisims export facility to serve energy markets in Asia.

The agreement involves the purchase of 2 million tons of LNG (about 2.8 bcm) per year for 20 years and is the first proposed binding agreement for the Ksi Lisisms project. Shell Eastern Trading will load LNG on a FOB (free-on-board) basis, which will allow cargo to be delivered anywhere.

A $7.4 billion project in remote British Columbia could be ready by 2030, but a final investment decision has yet to be made.

Ksi Lisisms LNG will be backed by the Nisga`a Nation, a consortium of Canadian gas producers known as Rockies LNG, and Houston-based Western LNG, which a former Cheniere Energy executive heads.