Memorandum of Understanding reached regarding floating LNG project

SEOUL, SOUTH KOREA — A memorandum of understanding (MOU) has been reached regarding a prospective floating liquefied natural gas (LNG)  terminal project.

According to a press release, Korean boat-building company Hanwha Ocean has signed a non-binding MOU with Kanata Clean Power and Climate Technologies to develop Kanata LNG, a terminal planned in Prince Rupert.

When operational, the terminal is expected to ship 12 million tonnes of LNG per annum.

Kanata estimates the cost of the entire project to be approximately $15.7 billion upon completion.

The two parties “intend to explore” opportunities for collaboration across technical and commercial areas, including: engineering and construction of floating LNG production and related facilities; operations and maintenance services over the facilities’ operating life; strategic equity participation by Hanwha Ocean or affiliated entities; long-term LNG purchase arrangements; and midstream solutions, including LNG carriers and bunker vessels.

Hanwha’s ocean energy plant unit president, Phillippe Levy, said his company was “pleased” at entering the MOU and the potential of exploring how Hanwha’s assets could contribute to the development of Kanata LNG.

“Canada has world-class natural gas resources and strong long-term potential to support reliable LNG supply to Asia-Pacific markets,” said Levy in the release.

Scheduled to be located in the Prince Rupert area, Kanata LNG is “intended to leverage modular construction and marine-based liquefaction technology to provide scalable export capacity,” offering participating First Nations up to a 50 per cent stake of ownership in the terminal.