German company and B.C.’s Ksi Lisims sign landmark long-term LNG agreement
German energy company Uniper has signed a long-term agreement to purchase LNG from the Ksi Lisims project in British Columbia, Canada. The deal marks a significant step in international energy cooperation, though it faces criticism from environmental groups concerned about climate impact.
Why it matters
This deal represents a major shift in global energy supply chains and highlights the ongoing tension between economic development and climate change commitments.
German company Uniper and B.C.’s Ksi Lisims signed what they called a landmark long-term LNG agreement on Wednesday morning.
The agreement took place in Düsseldorf, Germany, and represents the first major long-term LNG supply agreement between Canada and Germany.
Uniper will purchase two mtpa (million tonnes per annum) of LNG (approximately 30 TWh per year) on a free-on-board (FOB) basis for up to 20 years, with first deliveries expected from 2032.
“This agreement is about far more than LNG,” Michael Lewis, CEO of Uniper, said in a statement.
“By signing this long-term off-take agreement, we are strengthening Uniper’s portfolio with a reliable source of LNG from Canada.”
This announcement comes after recent moves from the federal government embracing LNG development in B.C.
Last year, phase two of LNG Canada and the proposed Ksi Lisims LNG export terminal were referred to the federal government’s major projects office for fast-tracking.
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