Canada to announce $10 billion LNG deal with Germany

Canada is poised to announce a major liquefied natural gas export deal with Germany, a move officials say will advance a proposed $10 billion export facility on British Columbia’s coast and strengthen energy ties between the two nations. The agreement, expected to be formally announced Wednesday by Natural Resources Minister Tim Hodgson in Vancouver, involves German state-owned energy company SEFE purchasing LNG from the planned Ksi Lisims project.

The Ksi Lisims project is a floating export terminal proposed for a site near the Alaska border. It is a partnership between Western LNG, Rockies LNG Partners, and the Nisga’a Nation, an Indigenous group that owns the development land. While the project has received regulatory approval, the consortium has not yet made a final investment decision to begin construction. British Columbia Premier David Eby stated that securing offtake agreements with buyers is a critical step toward reaching that milestone, and this deal makes the project more likely to proceed.

The facility is planned to have a capacity of 12 million metric tons of LNG per year, making it nearly as large as the first phase of the Shell-backed LNG Canada project that...