Canada has announced its first long-term liquefied natural gas (LNG) supply agreement with a European buyer, marking a significant step in the country’s trade diversification and energy export strategy.
The agreement between the proposed Ksi Lisims LNG project in British Columbia and Germany’s state-owned energy company SEFE was announced by Tim Hodgson, Canada’s Minister of Energy and Natural Resources, in Vancouver on Wednesday.
Under the deal, Germany would purchase one million tonnes of Canadian LNG annually for up to 20 years, with deliveries expected to begin in the early 2030s.
Key developments
- Ksi Lisims LNG aims to become one of the world’s lowest-emission LNG facilities
- The project could attract more than CAD$30 billion in investment and support thousands of jobs
- Environmental organisations and some Indigenous groups continue to oppose the development over climate and legal concerns
The agreement remains contingent on a final investment decision and a definitive sales and purchase agreement between both parties.
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