Western LNG, one of the industry partners in the Nisga’a Nation-backed Ksi Lisims project near Prince Rupert, has secured $150 million to advance the LNG and associated natural gas pipeline project towards a final investment decision on the $9 billion project.
Western LNG today announced it has secured a $150 million private placement led by Blackstone Energy Transition Partners, an affiliate of Blackstone Inc. (NYSE: BX), along with affiliates of Jefferies Financial Group Inc. (NYSE: JEF), Transition Equity Partners, LLC (TEP) and others.
“This funding fully supports the remaining development activities for the Ksi Lisims LNG and Prince Rupert Gas Transmission (PRGT) projects through to a final investment decision (FID), expected later this year,” the company said in a press release.
“Together with prior private placements, cumulative investment in support of these projects has reached more than $265 million, over and above the investments in PRGT made by its previous owner."
The three partners in the Ksi Lisims project are Western LNG, the Nisga’a Nation and Rockies LNG. The project includes a 12-million-tonne-per-year floating LNG facility on Pearse Island north of Prince Rupert on Nisga’a owned land, and a new natural gas pipeline.
The $9 billion project is still making its way through the BC Environmental Review process.
“Blackstone’s anchor investment in this private placement demonstrates its confidence in the Ksi Lisims LNG and PRGT projects and confirms that our approach to delivering responsible, net-zero-ready energy infrastructure is aligned with market demand,” said Western LNG CEO Davis Thames said in a press release.
“Global demand for affordable, reliable and more sustainable energy is increasing, and the development and construction of critical energy infrastructure is struggling to keep up,” said David Foley, global head of Blackstone Energy Transition Partners. “Western is ideally located to connect Canada’s immense low-cost natural gas reserves with Asia, the world’s largest and most rapidly growing market for liquefied natural gas.”
The $150 million private placement will be used to advance the project towards FID, which includes completing the environmental review and permitting process and completing front-end engineering for both Ksi Lisims LNG and the pipeline.
“This funding also allows Western to substantially increase staffing levels for both projects this year,” the company said in its release.
It’s expected that an EAO assessment report will go to federal and provincial ministers for a decision sometime this spring.
