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

Germany's state-controlled energy group Uniper has finalized a 20-year liquefied natural gas (LNG) purchase deal with Canada. This agreement comes after a preliminary deal in June, where Uniper secured an initial 2 million tons of gas per year from Canada's LNG project Ksi Lisims on British Columbia's Pacific coast starting in 2032.

Uniper already has long-term purchases with Canada's Tourmaline, and this new deal reflects European ambitions to diversify away from traditional gas suppliers like Russia. With Gazprom stopping deliveries in 2022, Europe is seeking alternative routes, including U.S. supplies, which accounted for 96% of Germany's LNG imports last year.

Canada is also looking to reduce its reliance on U.S. buyers and has secured deals with Japan, India, and Malaysia. This month, Canada selected Germany's TKMS to supply 12 submarines, potentially triggering follow-up contracts in rare earths, batteries, or energy.