Canada nears landmark LNG export deal with Germany

A landmark agreement to export liquefied natural gas (LNG) from northwestern British Columbia to Germany is expected to be announced this week, according to sources cited by CBC News.

The deal is reportedly between Ksi Lisims LNG and German state-owned energy company SEFE, marking what sources describe as the first LNG agreement of its kind between Canada and Europe. The contract is expected to cover the supply of one million metric tonnes of LNG per year.

Federal Energy Minister Tim Hodgson is scheduled to make an announcement in Vancouver on Wednesday regarding “international energy exports,” with details of the agreement anticipated.

The proposed Ksi Lisims LNG project, valued at $10 billion, is a floating export facility planned for Nisga’a Nation territory, about 80 kilometres north of Prince Rupert. It is designed to have a total export capacity of 12 million metric tonnes annually. The project is being developed in partnership with the Nisga’a Nation, Rockies LNG Ltd. Partnership, and Western LNG, whose subsidiaries are expected to construct and operate the facility.

British Columbia Energy Minister Adrian Dix declined to confirm the deal but said Ksi Lisims LNG has been working to expand its global market reach. Premier David Eby welcomed the development, noting that securing buyers is key to reaching a final investment decision.

“Part of the work to get to a final investment decision is securing offtake agreements — that’s commitments to buy the LNG from the facility. So a major announcement with a European partner of purchasing LNG gets us that much closer,” Eby said.

The agreement comes as Europe seeks alternative energy sources amid rising natural gas prices linked to geopolitical tensions, including the US-Israel war on Iran. Canada has been approached by multiple countries as a potential supplier.

However, the project faces opposition from some First Nations and environmental groups. Critics argue it remains legally contested and environmentally risky, with unresolved concerns over Indigenous consent and long-term viability.

Natural gas for the facility is expected to be delivered via the Prince Rupert Gas Transmission pipeline, while electricity would come from the planned North Coast Transmission Line—both designated as priority infrastructure projects.

By Tamilla Hasanova