German utility to buy one million tonnes of LNG per year from Ksi Lisims project

VANCOUVER — A German utility has signed a long-term agreement to buy one million tonnes of liquefied natural gas per year from the yet-to-be-built Ksi Lisims project in northern British Columbia as European countries look to lock down reliable fuel supplies in a turbulent geopolitical landscape.

Deliveries to German government-owned company Securing Energy for Europe, or SEFE, are to begin in the early 2030s and cover a period of up to 20 years, Natural Resources Minister Tim Hodgson told a news conference in Vancouver on Wednesday.

“In a moment that feels uncertain and volatile, the world trusts Canada,” Hodgson said.

Ksi Lisims is a partnership between the Nisga’a Nation, Houston-based Western LNG and Rockies LNG, a group of Canadian natural gas producers. The floating terminal is planned for Pearse Island, near the Alaska border.

“European energy buyers are facing urgent decisions about diversification, but they should not have to choose between energy security and climate ambition,” said Eva Clayton, president of the Nisga’a Lisims Government.

“Ksi Lisims LNG is designed to meet both needs — offering a stable, low emissions source of LNG with strong environmental and social governance at its core. This is the kind of project the world needs as it transitions to a lower carbon future.”

The $10-billion project has regulatory approval but the partners have yet to make a final investment decision, which would clear the way for construction to begin.

LNG is natural gas that has been chilled into a liquid state, enabling it to be shipped by sea around the world on specialized tankers.

The LNG Canada facility further south along the coast in Kitimat, B.C., was the first project of its kind to start up in this country almost a year ago. That facility is owned by Shell Canada and four Asian firms.

Ksi Lisims and an expansion to LNG Canada have been referred to the major projects office, which aims to speed along approvals for infrastructure deemed in Canada’s national interest.

Those two projects were built with exports to Asia in mind, given the short shipping distance across the Pacific. But the war in the Middle East has knocked out production from Qatar, one of the world’s biggest LNG suppliers, leaving European countries short on the fuel and in search of steady imports from elsewhere in the world.

The Cedar LNG project in Kitimat and Woodfibre LNG project near Squamish, B.C., are under construction.

This report by The Canadian Press was first published May 27, 2026.

The Canadian Press