Hanwha Ocean has signed a memorandum of understanding with Canadian energy developer Kanata to support joint development of the Kanata LNG project near Prince Rupert, British Columbia.
The agreement was signed on 16 June local time and announced on 18 June. The project is planned as a floating LNG export development with an annual capacity of up to 12 million tonnes. Its expected total cost is about $15.7 billion.
Under the MOU, Hanwha Ocean and Kanata will review cooperation in facility operation and maintenance, possible strategic equity participation by Hanwha Ocean or its affiliates, long-term LNG purchase arrangements and midstream solutions including LNG carriers.
The agreement also comes as Hanwha Ocean is competing in Canada’s next-generation submarine procurement program, known as CPSP. Canada applies strict industrial and technological benefit assessments to major defense projects, and the Kanata LNG cooperation is intended to show Hanwha Ocean’s commitment to local energy infrastructure.
A key decision in the CPSP process is expected soon. On 13 June, Stephen Fuhr, Canada’s Secretary of State for Defence Procurement, said in an interview in Berlin that a preferred bidder is expected to be selected within a month.
Philippe Levy, President of Hanwha Ocean’s Offshore Business Division, said Canada has major natural gas resources and the potential to supply LNG reliably to the Asia-Pacific market. He said the partnership with Kanata could allow Hanwha Ocean’s FLNG and offshore engineering capabilities to support the project.
