Canada is expected to sign a deal with Germany's SEFE group on Wednesday to export liquefied natural gas (LNG) from the proposed KSI Lisims facility in British Columbia, a move that marks a significant step in diversifying Canada's energy trade away from the United States.
Key Details
- The Deal: The agreement covers the export of up to 1 million metric tons (1.1 million US tons) of LNG per year.
- Announcement Date: The agreement is scheduled to be announced on Wednesday.
Background
Prime Minister Mark Carney has set a goal to double non-U.S. trade within a decade. Currently, nearly all of Canada's oil and gas exports are destined for the United States.
The Ksi Lisims project, located on Pearse Island near the Alaska border, has received the necessary permits but still requires a final investment decision to begin construction.
"Securing offtake agreements, such as this one, is a key step for the consortium to proceed with the $10 billion Canadian ($7.2 billion US) plant and export terminal."
— British Columbia Premier David Eby
The partnership has already signed supply agreements with units of Shell and TotalEnergies.
Related Context
SEFE is a German energy utility that was formerly the German subsidiary of Gazprom. It was nationalized by Germany in 2022 amid Europe's energy crisis. Following Russia's reduced natural gas supplies to Europe after the Ukraine war, Germany and other European countries have been actively seeking alternative energy sources.