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Germany Nears First Long-Term LNG Deal With Canada's Ksi Lisims

The plan would give state buyer SEFE one million tonnes a year to diversify Germany's gas supplies, with delivery timing subject to final investment decisions, construction and legal clearances.

Overview

  • Multiple outlets reported on Wednesday that SEFE and the Ksi Lisims developer intend to sign a letter of intent for the annual delivery of 1 million tonnes of LNG to Germany.
  • Ksi Lisims has won key regulatory approvals and a Canadian government designation as a project of national significance and could produce up to 12 million tonnes per year once built.
  • The companies say deliveries could begin in the early 2030s with optimistic scenarios pointing to 2029, but that schedule depends on a final investment decision and the start of construction.
  • Shipping and pipeline logistics are complex because the terminal sits on Canada’s Pacific coast; Canada’s energy minister said some cargoes would transit the Panama Canal, others would be rerouted, and some loads could be swapped between buyers.
  • The deal would modestly boost Germany's supply diversification and has drawn political debate over long 20‑year contracts and Indigenous and legal challenges that could delay or change the project.