Three LNG Agreements and a Phase 2: What British Columbia's Project Pipeline Could Mean for Pressure-Equipment Demand

By Kopfkino Consulting Corp. · Published September 21, 2026 · 7 min read

Ksi Lisims LNG's Heads of Agreement with Santos and LNG Canada's proposed Phase 2 point to a potential multi-year pressure-equipment demand pipeline in British Columbia, as of September 21, 2026.

British Columbia's LNG sector added three data points in one week, and pressure-equipment suppliers should read them together. On September 15, 2026, Natural Resources Canada highlighted a Heads of Agreement that Ksi Lisims LNG signed with Santos on September 14 for 1 million tonnes per annum of LNG for up to 20 years, subject to completion of a sales and purchase agreement. Ksi Lisims, a proposed 30 billion dollar floating LNG development designed to export up to 12 million tonnes per annum, separately reports binding sales and purchase agreements with Shell, TotalEnergies and Uniper totalling 6 million tonnes per annum, plus preliminary agreements with SEFE and Santos. LNG Canada's proposed Phase 2 could add a further 14 million tonnes per annum, and Reuters reported on September 17 that a decision could come as early as October, citing people familiar with the matter. As of September 21, 2026, none of this is a committed equipment order book. It is a potential multi-year demand pipeline, and the registration system it would feed has finite capacity.

The News, and Why a Heads of Agreement Is Not a Binding SPA

The distinction matters for planning. A Heads of Agreement records intent and headline terms; a sales and purchase agreement is the binding commercial contract. The Santos arrangement is explicitly subject to completion of an SPA, which is why we describe it as a demand signal rather than a sale. The binding SPAs with Shell, TotalEnergies and Uniper carry more planning weight, and the preliminary agreements with SEFE and Santos sit at the earliest end of the scale.

The Wider British Columbia Picture

LNG Canada's proposed Phase 2 expansion could add 14 million tonnes per annum of capacity. LNG Canada has said it hopes to make a final investment decision before the end of 2026, and the September 17 Reuters report, citing people familiar with the matter, said a decision could come as early as October. Both Ksi Lisims and LNG Canada Phase 2 have been referred to the federal Major Projects Office, which coordinates federal attention on projects of national significance. Referral is not approval, and timelines can move in either direction.

The hedges in that paragraph are deliberate. Proposed projects can change scope, sequencing, or timing, and offtake momentum does not by itself sanction construction. What the announcements do establish is that owners, buyers, and governments are spending real effort on projects that would consume large volumes of registered pressure equipment if they proceed.

From LNG Capacity to Equipment Categories

Liquefaction capacity is built out of pressure equipment. If either project proceeds, demand would arrive across familiar categories:

• Pressure vessels: separators, scrubbers, absorbers, surge drums, and utility vessels across pretreatment, liquefaction, and utilities.
• Heat exchangers, including the large units at the heart of the liquefaction process.
• Columns and towers for fractionation and treatment.
• Drums operating under pressure.
• Pressure piping and the fittings that tie the system together.

Every one of these categories touches Canadian design registration before use in British Columbia, although obligations depend on the specific equipment, applicable exemptions, and scope. Many designs will need Canadian registration before the equipment can be used in BC, and the classification work has to happen item by item, not at the project level.

Registration Scheduling Risk

Technical Safety BC administers design registration for static pressure equipment in the province, and its review capacity is shared across every project in the queue. A multi-project LNG buildout would concentrate large numbers of registration packages into the same window. Our guides on portal-ready submissions to Technical Safety BC and on multi-jurisdiction registration strategy cover the mechanics; the strategic point here is that review slots become a scarce project resource well before fabrication slots do.

Fabrication Scenarios

Equipment for a BC LNG project can arrive through several fabrication routes, and each carries a different registration burden. Domestic fabrication integrates registration into the shop's quality program from the start. Imported modules bring equipment that may already be built to ASME codes but still needs Canadian registration, and documentation for imported equipment may still need to be assembled to Canadian expectations before a reviewer will accept it. Our guides on importing pressure equipment into Canada and on how overseas OEMs register equipment for Canada describe both paths.

What to Do Before FID

The period before a final investment decision is when registration planning is cheapest. The actions that matter:

1. Build equipment lists early, with enough definition to classify each item against provincial scope and exemptions.
2. Prepare code and jurisdiction matrices so every item has a known design code and a known registration destination.
3. Assign registration responsibility contractually, item by item, before purchase orders are placed.
4. Sequence submissions so long-lead and novel designs enter review first.
5. Assemble document readiness: calculations, drawings, and quality program evidence in the format reviewers expect.

Our EPC and procurement guide to specifying CRN requirements is written for exactly this stage of a project.

Frequently Asked Questions

Is the Santos agreement binding?

Not yet. It is a Heads of Agreement signed on September 14, 2026, subject to completion of a sales and purchase agreement. Ksi Lisims separately reports binding sales and purchase agreements with Shell, TotalEnergies and Uniper totalling 6 million tonnes per annum.

When will LNG Canada decide on Phase 2?

LNG Canada has said it hopes to reach a final investment decision before the end of 2026. Reuters reported on September 17, 2026, citing people familiar with the matter, that a decision could come as early as October. Until a decision is announced, Phase 2 remains proposed.

Does equipment on a floating LNG facility need Canadian registration?

Obligations depend on the equipment, applicable exemptions, and scope, but many designs will need Canadian registration before use in British Columbia. Classification should be confirmed item by item rather than assumed at the project level.

Why plan registration before a final investment decision?

Because the review queue does not scale with announcement headlines. Equipment lists, jurisdiction matrices, and submission sequencing prepared before FID convert directly into schedule protection after it.

Sources

• Natural Resources Canada: Canadian LNG project signs third international offtake deal
• Ksi Lisims LNG: 20-year LNG supply agreement with Santos
• Major Projects Office: Ksi Lisims project
• Major Projects Office: LNG Canada project
• Reuters: LNG Canada could approve Phase 2 expansion by early October, sources say
• Technical Safety BC: design registration requirements for static pressure equipment

If your equipment could end up in a BC LNG train, the time to plan ASME design and CRN registration capacity is before the investment decision, not after. Contact us to map your registration path while the review queue is still manageable.

Project status and regulatory requirements can change. The agreements and timelines described here are as of September 21, 2026 and remain subject to the conditions noted above; confirm against the current primary sources before making procurement or scheduling decisions.

Topics: British Columbia, LNG, Technical Safety BC, Major Projects, Procurement