Hanwha Ocean has signed a non-binding memorandum of understanding with Kanata Clean Power & Climate Technologies to explore collaboration on the proposed Kanata LNG floating liquefied natural-gas export project near Prince Rupert, B.C., the companies announced.

The proposed project would have export capacity of up to 12 million tonnes per annum and is expected to require approximately US$15.7 billion in capital expenditures, subject to final engineering, commercial arrangements and regulatory approvals.

Under the agreement, the companies will examine potential co-operation in engineering and construction of floating LNG production facilities, operations and maintenance services, strategic equity investment, long-term LNG purchase arrangements and midstream solutions.

“Canada has world-class natural-gas resources and strong long-term potential to support reliable LNG supply to Asia-Pacific markets,” said Philippe Levy, president of Hanwha’ 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. \

“Hanwha Ocean has extensive experience delivering complex offshore energy facilities and believes floating LNG can offer a flexible and scalable pathway for new LNG export developments where the 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-execution decision can be made, and we look forward to working with Kanata to evaluate the opportunity in a disciplined and responsible manner.”

Kanata LNG is planned as a floating LNG export facility near Prince Rupert, which is North America’s closest Pacific port to Northeast Asia. The project is designed to use modular construction and marine-based liquefaction technology to provide scalable export capacity.

Kanata has also offered participating First Nations the opportunity to acquire up to a 50-per-cent ownership stake in the project, subject to negotiations, financing arrangements and required approvals.

“Hanwha brings globally recognized capabilities in floating infrastructure, shipbuilding and energy systems, making it an outstanding collaborator as we advance the project,” said Robert Delamar, CEO of Kanata.

The memorandum is non-binding and does not commit either company to proceed with investment, engineering, operations, LNG offtake agreements or any other commercial arrangements. Any future commitments would be subject to due diligence, binding agreements, board approvals and other customary conditions.

The proposed project remains subject to environmental assessments, Indigenous engagement, regulatory approvals and commercial agreements.

Hanwha said the agreement aligns with its broader efforts to pursue industrial co-operation opportunities in Canada as it participates in discussions related to Canada’s future submarine capability requirements and the Canadian Patrol Submarine Program.

Hanwha is a South Korean shipbuilding and energy-infrastructure company that designs and builds naval and commercial vessels, submarines, offshore energy facilities and floating production systems. The company has delivered more than 1,400 vessels and completed more than 280 offshore and onshore energy projects worldwide.

Kanata is a Vancouver-based energy-development company focused on low-carbon energy projects and partnerships with First Nations to develop natural gas resources and support energy security in Indo-Pacific markets.

Pictured: Robert Delamar, CEO of Kanata (left) and Philippe Levy, president of Hanwha Ocean’s energy plant unit (left), sign a memorandum of understanding.

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