Canada and Germany make liquefied natural gas deal as Carney looks to diversify from US
TORONTO (AP) — Canada has reached an agreement to export liquefied natural gas to Germany from a planned terminal on the Pacific Coast, an official familiar with the matter said Tuesday.
The official confirmed that Canada will sign an agreement with Germany’s SEFE group, which stands for Securing Energy for Europe, from the proposed KSI Lisims export facility off the coast of British Columbia. The official spoke on condition of anonymity because he was not authorized to speak ahead of Wednesday’s announcement.
Up to 1 million metric tons (1.1 million US tons) of liquefied natural gas will be exported in that year.
Prime Minister Mark Carney It aimed to double non-U.S. trade within a decade. Oil and gas rich Canada currently exports almost all of its energy, oil and gas to the United States.
British Columbia Premier David Eby said early Tuesday that a deal to supply Germany with liquefied natural gas from Canada would be an important step as the partners behind the Ksi Lisims project decide to build the $10 billion Canadian ($7.2 billion) facility and export terminal.
Ksi Lisims, located on Pearse Island on the Alaska border, has the permits it needs, but the consortium has not yet made a final investment decision that would pave the way for construction to begin.
Eby said signing offtake agreements with buyers is an important step before Ksi Lisims reaches this milestone.
The partnership has already signed supply agreements with London-based Shell and a unit of France-based TotalEnergies.
SEFE is a leading German energy company. It is the former German subsidiary of Gazprom, which Germany nationalized in 2022 at a time when Europe is struggling with an energy crisis linked to the war in Ukraine and now in the Middle East.
While European countries support Ukraine, Russia cut off natural gas supply used to heat homes, generate electricity and for the energy industry, Creating an energy crisis that fuels inflation And forcing some factories to close because prices have risen.
Germany was a major importer of Russian gas before the war.
