Ksi Lisims LNG has secured a major long-term customer for its proposed British Columbia export project, signing a 20-year liquefied natural gas supply agreement with German utility Uniper.
Under the agreement, Uniper will purchase two million tonnes of LNG per year from the project, with the first deliveries expected to begin in 2032.
The companies said the contract represents the first major long-term LNG supply agreement between Canada and Germany, strengthening energy ties between the two countries as Europe continues diversifying its natural gas sources.
The agreement follows a letter of interest signed by both parties last month, which outlined the key commercial terms that have now been finalized.
The Ksi Lisims LNG project is being developed by Houston-based Western LNG, which will serve as the lead developer and future operator, in partnership with Rockies LNG, a consortium of Canadian natural gas producers, and the Nisga’a Nation, on whose lands the facility would be located.
The proposed $10 billion project would be built on Pearse Island, near the Alaska border, and would use a floating LNG facility capable of exporting up to 12 million tonnes per year.
For Uniper, the agreement strengthens its long-term LNG portfolio as one of northwestern Europe’s largest importers of liquefied natural gas. The company currently operates 18.5 gigawatts of power generation capacity and plays a significant role in Germany’s energy supply.
Uniper was taken over by the German government during the 2022 energy crisis that followed Russia’s invasion of Ukraine. The utility is now undergoing a privatization process as the German government reduces its ownership stake.
The agreement is expected to support the commercial development of Ksi Lisims LNG while providing Germany with a new long-term source of Canadian natural gas for decades to come.
