Naftogaz, Hanwha Agreements Advance 2 Canadian LNG Proposals

Naftogaz, Hanwha Agreements Advance 2 Canadian LNG Proposals

Two separate Canadian LNG export proposals advanced this month through new agreements with international partners, according to press releases from the project developers.

Kino Aski LNG and Naftogaz Group, Ukraine’s state-owned oil and gas company, signed a Memorandum of Understanding to explore long-term supply of low-carbon Canadian LNG to European markets. The agreement establishes a framework to assess potential volumes from the proposed Kino Aski LNG terminal, a First Nations-led project spearheaded by the Atikamekw Nation, with possible alignment to Naftogaz’s long-term import capacity at the LNG terminal in Klaipėda, Lithuania, for 2033 to 2044. “We are expanding our network of international partners to create more opportunities to purchase gas on competitive terms,” said Sergii Fedorenko, Naftogaz Group’s Acting CEO. Kino Aski LNG remains in the technical study phase, with no final pipeline route selected and no formal regulatory process yet initiated.

Separately, Kanata Clean Power & Climate Technologies Corp. and Hanwha Ocean’s Energy Plant Unit (HOEPU) announced they have agreed to indicative terms for a strategic partnership on Kanata LNG, a proposed 12 million tonnes per annum floating LNG facility near Prince Rupert, British Columbia, with an estimated capital cost of roughly US$15.7 billion. The parties intend to finalize a definitive agreement in the coming weeks and expect to launch a pre-front-end engineering and design study shortly after, targeting a full FEED study in 2027 and a final investment decision in early 2028. The indicative terms contemplate HOEPU entering as a strategic partner and investor, building, owning and operating the facility and taking LNG offtake volumes. Kanata also reached an agreement with a First Nation in the Prince Rupert region granting an exclusive right to acquire a 50/50 joint venture interest in the project, and expects further announcements on site selection and government support in the fourth quarter.

What It Means for Subcontractors

Both proposals remain pre-FID, but the Kanata LNG timeline, Pre-FEED this year, FEED in 2027, FID in early 2028, gives BC-based marine, modular fabrication, and civil contractors a concrete planning window for floating LNG construction and offshore hookup work at Prince Rupert. The Naftogaz MOU is earlier stage with no confirmed engineering scope yet, but adds to the pipeline of Eastern Canadian LNG proposals competing for European offtake commitments that could eventually support Quebec construction and marine terminal work.