Uniper Secures 20-Year LNG Deal with Canada's Ksi Lisims Project

Germany's state-controlled energy group Uniper has solidified its partnership with Canada by finalizing a 20-year liquefied natural gas (LNG) purchase deal. The agreement was made official on Wednesday, following an initial preliminary deal in June that aimed to secure 2 million tons of gas per year from 2032 onwards.

This supply will come from Canada's LNG project Ksi Lisims, located on British Columbia's Pacific coast. Notably, hydroelectric dams will power the liquefaction process, making this a relatively clean energy source. This deal is part of Uniper's efforts to diversify its gas imports beyond U.S. supplies.

Germany has been actively seeking alternative gas routes since Russia's Gazprom stopped delivering in 2022. The country's reliance on U.S. supplies was evident last year, with the U.S. accounting for 96% of Germany's LNG imports. This partnership with Canada is a significant step towards reducing that dependency.

The deal reflects broader ambitions to bolster alternative gas routes across Europe. Uniper has already agreed on long-term purchases with Canada's Tourmaline and another German state-owned gas importer, SEFE, secured some capacity from Ksi Lisims in May. This new agreement demonstrates the growing ties between Germany and Canada.