Tuesday, October 27, 2026
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LNG September 16, 2026

Ksi Lisims Signed a 1-Million-Tonne HOA With Santos. That Is Not an FID

Western LNG said September 14 Santos agreed key terms for 1 million tonnes a year of Ksi Lisims LNG for up to 20 years, FOB. Ottawa posted it September 15 as a third international offtake this year. Santos called the HOA non-binding. Supply is aimed around 2031.

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A heads of agreement is a sales file. The plant is still not sanctioned

Ksi Lisims LNG LP said September 14 it entered a Heads of Agreement with Santos for the sale and purchase of 1 million tonnes per annum of LNG for a term of 20 years, free on board. Davis Thames, founder and chief executive of Western LNG, said the HOA is a signal as the project moves through commercialization toward a final investment decision. Santos's September 15 release said the HOA is non-binding, subject to a definitive sales and purchase agreement, customary conditions, and corporate approvals, with supply commencing from about 2031.

Natural Resources Canada posted the same HOA on September 15 at 19:39 ET and called it the project's third international offtake this year, after Uniper and SEFE. The federal note puts Ksi Lisims at 12 million tonnes a year and about $30 billion, with the Nisga'a Nation as a partner, and says the project was referred to the Major Projects Office in November 2025. Western LNG said it already has sales and purchase agreements with Shell, TotalEnergies, and Uniper for 6 million tonnes a year.

The listed names on the feedgas side sit in Rockies LNG. A Financial Post explainer named Canadian Natural Resources (TSX: CNQ), Tourmaline Oil (TSX: TOU), and Peyto Exploration & Development (TSX: PEY) among the Western Canadian producers in that group. This HOA does not add 2026 AECO volumes and it does not sanction a cargo from Kitimat or Pearse Island this winter.

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