B.C. LNG project signs long-term supply agreement with German energy company

A long-term agreement has been signed to supply liquefied natural gas from the proposed Ksi Lisims LNG export terminal in northern British Columbia to Germany, according to an announcement made Wednesday by federal Energy Minister Tim Hodgson in Vancouver.

Hodgson said Germany-based energy company SEFE has agreed to purchase one million tonnes of LNG annually over a 20-year period. Supply from the project is expected to begin around 2030, pending construction and final investment approval.

The Ksi Lisims LNG project is planned for British Columbia’s north coast near the Alaska border. While the project has received regulatory approvals, project proponents have not yet made a final investment decision, which is expected by the end of 2026. Commercial operations are currently projected to begin by 2029.

Liquefied natural gas is natural gas cooled into liquid form, allowing it to be transported internationally by specialized tanker ships. Federal officials said the agreement reflects growing European demand for alternative energy supplies amid ongoing energy security concerns.