Uniper Signs 20-Year LNG Supply Deal with Canada's Ksi Lisims LNG

Uniper has signed a 20-year agreement to purchase 2 MMtpy of LNG from Canada's proposed Ksi Lisims LNG project, marking the first long-term LNG supply deal between Canada and Germany.

(P&GJ) — Uniper has signed a long-term agreement to purchase 2 MMtpy of liquefied natural gas from Canada's proposed Ksi Lisims LNG export project, marking the first long-term LNG supply agreement between Canada and Germany.

Under the sale and purchase agreement, Uniper will receive 2 MMtpy, or about 30 terawatt-hours of LNG annually, on a free-on-board basis for up to 20 years. First deliveries are expected to begin in 2032.

The agreement expands Uniper's long-term LNG supply portfolio while providing destination-flexible cargoes that can support European energy security. The Ksi Lisims LNG project is being developed by Western LNG, Rockies LNG and the Nisga'a Nation in British Columbia.

The proposed export facility plans to use hydroelectric power to operate its liquefaction process, a design developers say will significantly reduce the project's carbon intensity compared with conventional LNG export terminals.

"By signing this long-term offtake agreement, we are strengthening Uniper's portfolio with a reliable source of LNG from Canada," said Michael Lewis, CEO of Uniper. "In an increasingly uncertain world, diversification is a strategic necessity."

The agreement is the first long-term LNG sales contract between the project and a European utility.

"The LNG sales agreement that we have entered into today with Uniper is our first with a European utility," said Davis Thames, president, founder and CEO of Western LNG. "We look forward to commercializing the rest of the project so that we can move into construction shortly."

Ksi Lisims LNG is expected to be developed in partnership with the Nisga'a Nation, with project developers positioning it as a lower-carbon LNG export facility powered by British Columbia's hydroelectric grid.