Canada signs 20‑year LNG supply agreement with Germany

Canada has signed a 20‑year deal to supply Germany with up to one million tonnes of liquefied natural gas per year from the proposed Ksi Lisims floating LNG terminal on British Columbia’s Pacific coast. The gas will be bought by Germany’s state‑owned utility Securing Energy for Europe (SEFE), formerly a Gazprom subsidiary nationalised in 2022. The agreement, announced by federal Energy Minister Tim Hodgson in Vancouver, is presented as a step toward energy sovereignty, diversification of supply chains and a reduction of Europe’s reliance on Russian gas. Hodgson said, “We must translate advantage into action.” The project, expected to become Canada’s second‑largest LNG facility and generate roughly $15 billion in economic activity over 30 years, will use clean hydro‑electric power, giving it an emissions intensity about 94 % below the global average. German officials highlighted the strategic partnership, while SEFE’s involvement marks Germany’s first long‑term Canadian LNG purchase. The deal follows a 2025 trade mission by Prime Minister Mark Carney aimed at expanding Canadian trade beyond the United States. Environmental groups and Indigenous nations – including the Nisga’a, Haida and Gitanyow – have voiced opposition, citing climate concerns and land‑rights challenges. Nisga’a President Eva Clayton called the pact an “important milestone” for Indigenous co‑development and Canadian energy ambition.