Germany Secures 20-Year LNG Deal with Canadian Project

Uniper, a German utility company, has inked a long-term liquefied natural gas (LNG) supply deal with Ksi Lisims LNG, a project planned for the northern British Columbia coast.

The agreement will see Uniper purchase two million tonnes of LNG per year for up to 20 years, with first deliveries expected in 2032. This marks the first major long-term LNG supply agreement between Canada and Germany.

Ksi Lisims LNG is a joint venture between Houston-based Western LNG, Rockies LNG, a consortium of Canadian natural gas producers, and the Nisga'a Nation, which owns the land where the project will be located. The $10-billion project aims to export up to 12 million tonnes of LNG per year from Pearse Island, near the Alaska border.

Uniper has significant power generating capacity and is a major LNG importer in northwestern Europe. Although it was taken over by the German government during the 2022 energy crisis, Uniper is now being privatized.