Germany and Canada are preparing a major LNG deal to strengthen Europe's energy security
Kyiv • UNN
Canada is preparing an agreement with Germany's SEFE for gas supplies from a new $10 billion terminal. This will help Europe replace Russian energy resources.
Canada plans to announce a deal with Germany for the supply of liquefied natural gas from a new export terminal on the coast of British Columbia. This was reported by Bloomberg, citing sources familiar with the negotiations, according to UNN.
Details
The project in question is Ksi Lisims LNG, valued at 10 billion Canadian dollars, which has already received regulatory approval. The gas buyer will be the German company SEFE—a former unit of Gazprom that the German government nationalized following Russia's full-scale invasion of Ukraine. Canada's Energy Minister Tim Hodgson is expected to officially announce the deal.
The project involves the construction of a floating LNG terminal with a capacity of 12 million tons per year. Ksi Lisims LNG is supported by Western LNG, funded by Blackstone Inc., Rockies LNG Partners, and the Nisga’a Nation, on whose lands the construction is planned. A final investment decision regarding the project's launch has not yet been made.
Hodgson stated that European countries are looking for alternatives to Russian and Middle Eastern gas and do not want excessive dependence on the United States.
"We can be that alternative. We can be that reliable supplier that will not use energy for coercion,"
He also emphasized that Europe seeks to cooperate with suppliers who "share common values."