Uniper has signed a long-term agreement to purchase 2 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from Canada’s proposed Ksi Lisims LNG project, marking the first major long-term LNG supply arrangement between Canada and Germany.
Under the sale and purchase agreement, Uniper will buy the LNG on a free-on-board (FOB) basis for up to 20 years, with first deliveries expected from 2032.
The agreement strengthens Uniper’s long-term LNG portfolio and provides destination-flexible cargoes to support European energy security, the companies said.
The Ksi Lisims LNG project, being developed by the Nisga’a Nation, Western LNG and Rockies LNG, is planned for Pearse Island in British Columbia and will have a production capacity of 12 mtpa from two floating LNG production and storage facilities.
The developers said the project will use hydroelectric power from British Columbia to drive the liquefaction process, targeting a carbon intensity around 90% lower than conventional LNG facilities.
“This agreement is about far more than LNG. By signing this long-term off-take agreement, we are strengthening Uniper’s portfolio with a reliable source of LNG from Canada. As a trusted partner, Canada helps to broaden Europe’s energy supply and strengthens resilience against future disruptions. In an increasingly uncertain world, diversification is a strategic necessity.
“The project combines security of supply, low-carbon hydropower infrastructure and a strong partnership – exactly the kind of long-term energy partnership we seek to build,” said Michael Lewis, Chief Executive Officer of Uniper.
“The LNG sales agreement that we have entered into today with Uniper is our first with a European utility, and the beginning of an important long term relationship between our companies. Canada is naturally endowed with a world class natural gas resource, which, through responsible development, is one of the lowest emissions production complexes in the world.
“Paired with an abundant hydro resource, Ksi Lisims LNG will be one of the lowest emissions sources of LNG in the world. We look forward to commercializing the rest of the project so that we can move into construction shortly,” added Davis Thames, President, Founder and Chief Executive Officer of Western LNG.
