Germany’s Uniper Inks Preliminary Deal to Buy LNG from Canada’s Ksi Lisims

Germany's state-owned energy company Uniper has agreed to a preliminary deal to purchase LNG from Canada’s Ksi Lisims project, Reuters reported on June 8 citing a joint statement.

A letter of interest has been inked by the two sides that, if agreed to, will see Uniper buy 2 mn tonnes per year (tpy) on LNG from the project located north of Prince Rupert at Wil Milit in British Columbia. 

Cargoes could be delivered by as early as 2032. The project, which would boast a nameplate capacity of 12 mn tpy, has still not had a final investment decision (FID) taken. If the project has a positive FID taken shorty, construction on the facility could begin by as early as 2027.

Negotiations between the two sides began in early March. As negotiations picked up, it was revealed that Uniper was examining the possibility of buying LNG from the Ksi Lisims facility and utilizing the Panama Canal to transport the super-chilled fuel to Germany.

Canada and Germany have long appeared to be likely LNG trade partners with Canadian Prime Minister Mark Carney meeting with German Chancellor Friedrich Merz in August, when the two countries committed to building a hydrogen trade corridor.

The preliminary agreement comes on the heels of a 20-year LNG supply deal signed by Ksi Lisims with another German firm, Securing Energy for Europe (SEFE) in May. The agreement will see Ksi Lisims supply 1 mn tpy of the super-chilled fuel to Germany’s government-run gas importer.

Ksi Lisims is being developed by a partnership between Rockies LNG, Western LNG, and the Nisga’a Nation. The project has already obtained all the necessary federal approvals. 

The $10bn Ksi Lisims project was added to Canada’s major projects list by Prime Minister Mark Carney in November.