Canada is poised to disclose an agreement to deliver liquefied natural gas to Germany from a planned export terminal on the British Columbia shoreline, according to a Bloomberg report on Tuesday.
The supplies would originate from the Ksi Lisims project, a floating LNG export facility carrying a reported price tag of C$10 billion ($7.3 billion) that has already secured regulatory approval.
Germany’s state-controlled energy buyer SEFE - the former Gazprom PJSC unit nationalized by the German government following the invasion of Ukraine - is identified as the counterparty. Canadian Energy and Natural Resources Minister Tim Hodgson is expected to announce the arrangement on Wednesday.
Ksi Lisims LNG is backed by a group of investors that includes Western LNG, which is supported by Blackstone Inc., Rockies LNG Partners and the Nisga'a Nation, the Indigenous group that owns the land designated for the development.
Despite the reported agreement, the project has not yet reached a final investment decision to begin construction. The consortium envisages an export facility with an annual capacity of 12 million metric tons of LNG, a scale close to the first phase of the LNG Canada project - a development backed by Shell Plc that began operations last year.
In a recent interview, Minister Hodgson said European nations are actively pursuing dependable sources of gas to replace flows from Russia and parts of the Middle East that have been disrupted by war. He also said European countries are wary of becoming too dependent on U.S. gas supplies, citing trade tensions with the Trump administration and a desire across Europe to maintain a diversified supplier base for energy security.
The reported transaction, if confirmed, would link a large-scale planned Canadian export facility with a major European buyer seeking to shore up alternative supplies amid geopolitical disruptions. The Ksi Lisims project remains at the investment decision stage, and the announcement is expected to formalize a commercial tie-up rather than signal immediate construction activity.
Summary
Canada is expected to announce a deal to ship LNG from the Ksi Lisims floating export project in British Columbia to Germany's SEFE, with an announcement by Minister Tim Hodgson anticipated on Wednesday. The C$10 billion project has regulatory approval but no final investment decision; planned capacity is 12 million metric tons per year.