Canada’s Ksi Lisims and Germany’s SEFE finalise 20-year LNG deal

Germany’s Securing Energy for Europe (SEFE) and Canada’s Ksi Lisims LNG project have finalised their 20-year LNG supply deal, the two firms announced on October 26.

Under the terms of the deal, the Canadian LNG terminal will provide 1mn tonnes per year of super-chilled fuel to SEFE under a free-on-board basis beginning in the early 2030s. The deal follows a Heads of Agreement that was inked between the two companies in May.

Ksi Lisims is a partnership between the Nisga’a Nation, Rockies LNG, and Western LNG.

The agreement means that Ksi Lisims has now secured offtake agreements for 7mn tpy of its 12mn tpy production capacity. The project, located in Canada’s western most province British Columbia, also possesses preliminary agreements for 2mn tpy. Ksi Lisims in on schedule for full commercialisation by the end of 2026.

“We look forward to working with SEFE to provide its customers with reliable, low-carbon LNG,” Western LNG CEO and President Davis Thames said in a statement.

“Secure and diversified energy supply is fundamental to global economic prosperity, and our project is uniquely positioned to meet these priorities. The momentum behind Ksi Lisims LNG is stronger today than at any point in its development and we are excited about the months to come,” Thames added.

Ksi Lisims is expected to come online in 2029. A final investment decision (FID) is projected to be taken later this year on the $10 bn project.

The deal with SEFE marks the closure of a second agreement with a German energy firm. In June, German utility Uniper signed a letter of interest to purchase 2mn tpy of super-cooled gas. In August, Ksi Lisims finalised its 20-year deal with Uniper that will also be on a free-on-board basis with deliveries to begin in 2032.