Canada's LNG Bet on Europe Hinges on Unbuilt Project

Canada's ambitious plan to supply liquefied natural gas (LNG) to Europe hinges on the success of a project still in development, Ksi Lisims. The project aims to export up to 12 million tonnes of LNG per year from British Columbia to Europe, but it requires significant investment and infrastructure development.

In July, Germany's Uniper signed a binding deal with Ksi Lisims for two million tonnes of LNG per year for up to 20 years, with the first delivery expected in 2032. The agreement is conditional on the project receiving final approval and financing. Meanwhile, state-owned Securing Energy for Europe (SEFE) has a less advanced arrangement with Ksi Lisims, which involves a heads of agreement for one million tonnes of LNG per year.

The project's proponents claim that Ksi Lisims will be a low-emissions source of gas due to its reliance on hydroelectricity. However, the provincial environmental certificate warns that gas-fired power barges may be used before grid connection, which could have significant greenhouse-gas effects and cumulative effects on community health.

Indigenous leadership is involved in the project, with the Nisga'a Nation being a partner and the site located on their treaty land. However, not all affected First Nations communities are on board with the project, and some have expressed concerns about its potential impacts.