Hanwha Ocean Co., Ltd. and Kanata Clean Power & Climate Technologies Corp. have announced a non-binding Memorandum of Understanding (MOU) to collaborate on the proposed Kanata LNG project, a floating liquefied natural gas (FLNG) export facility planned for Prince Rupert, British Columbia. The project aims to achieve a capacity of up to 12 million tonnes per annum (MTPA).
Strategic Partnership Details
The MOU outlines potential cooperation across several areas, including engineering and construction of floating LNG production facilities, operations and maintenance services, strategic equity participation by Hanwha Ocean or its affiliates, long-term LNG purchase arrangements, and midstream solutions such as LNG carriers and LNG bunker vessels.
Kanata estimates total capital expenditures for the project at approximately US$15.7 billion, subject to final engineering, commercial arrangements, and regulatory approvals.
Statements from Leadership
Philippe Levy, President of Hanwha Ocean’s Energy Plant Unit, stated: “Canada has world-class natural gas resources and strong long-term potential to support reliable LNG supply to Asia-Pacific markets. 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.” He emphasized that significant work remains before any final investment decision.
Robert F. Delamar, CEO of Kanata Clean Power, said: “We are delighted to welcome Hanwha Ocean as a strategic partner in Kanata LNG through this Memorandum of Understanding. Hanwha brings globally recognized capabilities in floating infrastructure, shipbuilding and energy systems.”
Project Location and Indigenous Participation
Kanata LNG is being developed as a floating LNG export facility near Prince Rupert, North America’s closest Pacific port to Northeast Asia. The project aims to leverage modular construction and marine-based liquefaction technology. Kanata has offered participating First Nations the opportunity to acquire up to a 50 percent ownership interest, subject to negotiations, financing, and approvals.
Non-Binding Nature
The MOU is non-binding and expresses preliminary intentions to explore cooperation. It does not create any legally binding obligations or commit either party to enter into definitive transactions or proceed with negotiations. Any future commitments remain subject to due diligence, binding agreements, board approvals, and customary conditions.
