Uniper Secures Long-Term LNG Deal with Canada Amid EU Gas Diversification Efforts

German state-controlled energy group Uniper has finalized a 20-year liquefied natural gas (LNG) purchase agreement with Canada. The deal, which builds on a preliminary agreement from June, will see Uniper receive 2 million tons of gas annually starting in 2032 from the Ksi Lisims LNG project located on British Columbia's Pacific coast.

The agreement follows similar moves by other German energy importers, including state-owned gas importer SEFE, which secured Ksi Lisims capacity in May. This represents European efforts to establish alternative gas supply routes after Russia's Gazprom stopped deliveries in 2022.

U.S. supplies accounted for 96% of Germany's LNG imports last year, but Canada is working to reduce its dependency on U.S. buyers through export agreements with Japan, India, and Malaysia. The Ksi Lisims project will use hydroelectric dams to power gas liquefaction.