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23 min ago 2 min read
Canada has signed its first long-term LNG supply agreement with a European buyer, after German state-owned energy firm SEFE agreed to purchase one million tonnes per annum (mtpa) from the proposed Ksi Lisims LNG project in British Columbia.
The agreement comes as Ottawa looks to beyond the US and expand LNG exports into European and Asian markets.
Announced by Canada’s Minister of Energy and Natural Resources Tim Hodgson, the 20-year deal is SEFE’s first long-term LNG supply agreement with a Canadian supplier.
It also marks an important step towards securing a final investment decision (FID) on the Ksi Lisims LNG project, with an FID targeted for the end of 2026.
“This agreement is more than just a gas supply contract – it is the expression of a strategic partnership between Germany and Canada in the field of energy supply,” said Katherina Reiche, Germany’s Minister for Economic Affairs and Energy.
“Through closer co-operation, we are diversifying our procurement channels and making our economies more resilient in the face of global risks.”
Led by Houston-based Western LNG in partnership with the Nisga’a Nation and the Rockies LNG consortium, the Ksi Lisims LNG project will be designed to export up to from two floating LNG facilities located at Pearse Island, British Columbia.
The project is targeting commercial start-up for 2029, with deliveries expected to begin in the early 2030s.
The project’s electric-driven LNG trains will be powered by renewable hydroelectric energy, which, once operational, is expected to reduce emissions 94% below the global average.
The deal is in line with Canada’s efforts to double low-carbon LNG production and scale LNG exports across Asia and Europe, amid ongoing global LNG supply chain disruption.
Eva Clayton, President of Nisga’a Lisims Government, said, “European energy buyers are facing urgent decisions about diversification, but they should not have to choose between energy security and climate ambition.”
The agreement depends on the two parties finalising a sales and purchase agreement.
