Uniper Secures Long-Term LNG Deal with Ksi Lisims Project

German utility Uniper has signed a long-term agreement to purchase liquefied natural gas (LNG) from the Ksi Lisims project in northern British Columbia. The deal, worth two million tonnes per year for up to 20 years, starting in 2032, marks the first major long-term LNG supply agreement between Canada and Germany.

Uniper will import the LNG through its existing infrastructure in northwestern Europe. The German utility has a significant presence in the region, with 18.5 gigawatts of power generating capacity and a history as a major LNG importer. The company was taken over by the government in 2022 following Russia's invasion of Ukraine but is now being privatized.

The Ksi Lisims project is led by Houston-based Western LNG and includes partners Rockies LNG, a consortium of Canadian natural gas producers, and the Nisga'a Nation. The project aims to export up to 12 million tonnes of LNG per year from its location on Pearse Island near the Alaska border.

B.C. Premier David Eby praised the deal as an example of the province's approach to balancing environmental concerns with economic growth in the LNG industry. However, critics argue that new methane gas projects are irresponsible and an abdication of leadership given the devastating wildfires raging across Canada and Europe.