Uniper Seals 20-Year LNG Deal with Canada Amid European Diversification Efforts

Germany's Uniper has finalized a 20-year liquefied natural gas (LNG) purchase deal with Canada, as part of efforts to diversify its energy supplies. The agreement will see Uniper take in 2 million tons of LNG per year from 2032 from the Ksi Lisims project on British Columbia's Pacific coast.

This is part of a broader trend for European countries to reduce their reliance on Russian gas, following Gazprom's decision to stop deliveries in 2022. Uniper has already agreed on long-term purchases with Canada's Tourmaline and another German state-owned gas importer, SEFE, secured some Ksi Lisims capacity last May.

The deal reflects efforts by both countries to strengthen their partnership, particularly after Canada chose Germany's TKMS to supply 12 submarines earlier this month. The project is backed by Western LNG, the Rockies LNG consortium, and the Nisga'a First Nation, with gas liquefaction powered by hydroelectric dams.