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3w ago

Canada Signs First Long-Term European LNG Deal With Germany's SEFE

The purchase commitment strengthens the business case for the 12‑million‑tonne Ksi Lisims project and could move the partners toward a final investment decision.

Nisga'a Nation President, Eva Clayton waits for for a press conference to start before a Ksi Lisims LNG announcement of an environmental assessment certificate from the Government of British Columbia in Vancouver, on Tuesday, Sept. 16, 2025. THE CANADIAN PRESS/Ethan Cairns
A rendering of the Ksi Lisims LNG project in northern B.C.
Piping is seen on the top of a receiving platform of a natural gas pipeline terminus in Kitimat, B.C., on Wednesday, Sept. 28, 2022.
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Overview

  • The federal government said Wednesday that Germany’s state-owned SEFE will buy one million tonnes of liquefied natural gas per year from Ksi Lisims for up to 20 years with deliveries expected in the early 2030s.
  • With SEFE’s 1 mtpa commitment the project now has roughly 5 mtpa of its 12 mtpa capacity contracted after earlier 20‑year deals with Shell and TotalEnergies.
  • Ksi Lisims has received provincial and federal approvals but the partners have not taken a final investment decision and still need to secure multibillion‑dollar financing to start construction.
  • The deal is structured on a free‑on‑board basis so SEFE takes title at the B.C. terminal and industry sources say much of the cargo value may flow through global swap trades rather than direct shipments to Europe because of Panama Canal limits and long sail times.
  • The project is co‑owned by the Nisga’a Nation and faces active legal challenges from the Lax Kw’alaams Band and the Metlakatla First Nation plus criticism from environmental groups over climate and local ecological impacts.