Canada, Germany set Ksi Lisims LNG supply deal

May 26, 2026 at 19:13 UTC

3 min read

LNG carrier near export terminal symbolizing long-term Canada-Germany Ksi Lisims LNG supply deal

Key Points

Canada plans a major LNG supply agreement with Germany’s SEFE
Gas would come from the planned Ksi Lisims terminal in British Columbia
Ksi Lisims is designed for 12 million tonnes of LNG per year
Shell and TotalEnergies (TTEp) already hold 20-year Ksi Lisims contracts

Canada and Germany move toward major LNG supply pact

Canadian officials and industry sources said Canada will sign a large-scale liquefied natural gas supply agreement with Germany’s SEFE. The LNG is to be supplied from the planned Ksi Lisims export facility on the coast of British Columbia, marking a prospective new long-term link between Canadian gas producers and a European state-backed buyer.

The agreement was expected to be announced in Vancouver by Natural Resources Minister Tim Hodgson. Company and government representatives, including SEFE and project partners, declined to comment ahead of the announcement, according to the reporting.

The prospective deal comes as European buyers seek to diversify gas supplies. For Canada, it would represent a significant export outlet tied to a project that is still working toward a final investment decision.

Ksi Lisims LNG project structure and capacity

Ksi Lisims is a proposed LNG export project being developed on Nisga’a First Nation territory on British Columbia’s coast. The project is led by Houston-based Western LNG, a consortium known as Rockies LNG, and the Nisga’a First Nation, which owns the development site.

The facility is being designed for roughly 12 million tonnes per year of LNG output. This planned scale positions Ksi Lisims as a large export terminal, capable of supporting multiple long-term supply agreements with international buyers.

Project backers have been working to finalise contracts with purchasers ahead of an expected final investment decision. As of the reporting, Ksi Lisims had not yet reached that decision, and the completion of additional offtake agreements is seen as part of the pre-FID preparations.

Existing long-term offtake agreements

Two major oil and gas companies, Shell and TotalEnergies (TTEp), have already signed 20-year purchase agreements with Ksi Lisims. These contracts cover LNG volumes to be supplied once the facility is built and operational.

The planned SEFE agreement would add a significant European buyer to this list of long-term customers. Together, the Shell, TotalEnergies (TTEp) and anticipated SEFE contracts illustrate the project’s focus on securing committed offtake before construction proceeds.

Implications for European gas diversification

The reported Canada–SEFE agreement is part of broader European efforts to diversify gas supply sources. By entering into a large-scale LNG arrangement linked to Ksi Lisims, Germany would gain access to Canadian LNG once the terminal becomes operational.

While the timing of a final investment decision on Ksi Lisims has not been disclosed, the combination of existing 20-year purchase deals with Shell and TotalEnergies and the planned SEFE supply agreement underscores the project’s emerging role in future transatlantic LNG trade.

Key Takeaways

The planned SEFE contract would add a major European buyer to Ksi Lisims’ existing long-term offtake base.
Ksi Lisims remains pre-FID, and securing purchase agreements is central to advancing the project.
The Canada–Germany LNG pact aligns with Europe’s strategy to widen its range of gas suppliers.