Deal reached to export LNG to Germany
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TORONTO (AP):
Canada has reached a deal to export liquefied natural gas to Germany from a planned Pacific coast terminal, an official familiar with the matter said on Tuesday.
The official confirmed that Canada will sign the agreement with Germany’s SEFE Group — Securing Energy for Europe — for supply from the proposed KSI Lisims export facility on the coast of British Columbia. The official spoke on condition of anonymity, as they were not authorised to speak ahead of Wednesday’s announcement.
The official said up to one million metric tonnes of liquefied natural gas per year will be exported.
Canadian Prime Minister Mark Carney has set a goal to double non-US trade within a decade. Oil- and gas-rich Canada currently exports almost all of its oil and gas to the United States.
British Columbia Premier David Eby said earlier on Tuesday that a deal to supply Canadian liquefied natural gas to Germany would be a key step towards the partners behind the Ksi Lisims project deciding to proceed with their C$10 billion (US$7.2 billion) plant and export terminal.
Ksi Lisims, on Pearse Island near the border with Alaska, has the permits it needs, but the consortium has yet to make a final investment decision, which would pave the way for construction to begin.
Eby said securing offtake agreements with buyers is a key step before Ksi Lisims can reach that milestone.
The partnership has already signed supply agreements with a unit of London-based Shell and France-based TotalEnergies.
SEFE is a leading German energy utility. It is the former German subsidiary of Gazprom, which Germany nationalised in 2022 as Europe grappled with an energy crisis linked to the war in Ukraine and tensions in the Middle East.
As European countries supported Ukraine, Russia slashed supplies of natural gas used to heat homes, generate electricity and power industry, creating an energy crisis that fuelled inflation and forced some factories to shut down as prices rose.
Germany was a major importer of Russian gas before the war.