Kanata and HOEPU have agreed to indicative terms and intend to move toward finalising a definitive agreement in the coming weeks. Subject to that process, the parties expect shortly thereafter to launch a pre-FEED study for Kanata LNG. A favourable pre-FEED outcome would support the commencement of a full FEED study in 2027, keeping the project on target for a final investment decision (FID) in early 2028. The indicative terms contemplate HOEPU entering Kanata LNG as a strategic partner and investor, with HOEPU building, owning, and operating the facility and entering into LNG offtake arrangements.
In addition to progress on the Hanwha transaction, Kanata LNG has 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. The nation has begun engaging neighbouring nations about participating in that ownership interest, reflecting the Indigenous equity partnerships now established on other major Canadian energy projects. Outreach to senior levels of government continues positively, and Kanata LNG expects to make major announcements in 4Q26 regarding final site selection and government support for the project.
