South Korean shipbuilder and offshore engineering company Hanwha Ocean and Vancouver-based Kanata Clean Power & Climate Technologies Corp. signed a non-binding memorandum of understanding on Tuesday for a proposed US$15.7 billion floating liquefied natural gas export facility near Prince Rupert, British Columbia — the latest in a series of Canadian LNG projects targeting Asian markets.
The proposed Kanata LNG facility would ship up to 12 million tonnes of LNG per year to Asia-Pacific markets via Prince Rupert — the closest Pacific port to Northeast Asia in North America — using floating, modular liquefaction technology designed for scalable capacity.
The MOU covers potential collaboration on engineering, construction, operations, equity investment, and long-term LNG offtake arrangements. Total capital costs are estimated at US$15.7 billion, subject to final engineering, commercial arrangements, and regulatory approval.
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Hanwha was measured about what the agreement actually commits either party to. “Significant work remains before any final investment or project execution decision can be made,” the shipbuilder said in its announcement. The project still requires environmental review and a range of regulatory approvals before it could proceed.
Kanata has structured the project with Indigenous participation built in, offering First Nations the opportunity to acquire up to a 50% ownership interest. Hanwha President Philippe Levy described Canada as having “world-class natural-gas resources” with strong long-term potential for Asia-Pacific supply.
The deal adds to Hanwha’s growing footprint in Canadian energy. The conglomerate signed a separate LNG MOU with Newfoundland’s Fermeuse Energy earlier this year and is simultaneously competing against Germany’s TKMS for a lucrative Canadian submarine contract that Prime Minister Mark Carney has said he expects to award by the end of June.
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