Cargoes from the proposed project in British Columbia could begin being delivered by as early as 2032.

What: German utility Uniper has closed a 20-year deal with Ksi Lisims LNG to begin buying super-chilled fuel from the Canadian project if a positive final investment decision is made.

Why: Germany is planning to top 70 mn tonnes per year of LNG capacity by 2030 with a total of ten LNG import terminals by then as Berlin’s looks to Canada amid challenges buying from the US and Qatar. 

What Next: Germany and Canada have long been looking to strengthen their energy ties and this LNG deal could be just the tip of the iceberg between Ottawa and Berlin.

German state-owned energy utility Uniper has finalised a 20-year sale and purchase agreement (SPA) with Ksi Lisims LNG, a proposed plant in Canada’s western province British Columbia, Uniper announced on July 29.

Under the terms of the deal, Uniper will purchase 2 mn tonnes per year (tpy) of the super-chilled fuel on a free-on-board (FOB) basis with the first cargo expected to be delivered in 2032. The agreement also includes fully destination-flexible volumes offer Uniper added flexibility.

The 2032 delivery timeline is dependent on the project taking a final investment decision (FID) shortly, in order for construction to begin next year on the 12 mn tpy facility located north of Prince Rupert at Wil Milit.

Uniper first opened discussions with Canadian LNG plants in March. Spooked by US President Donald Trump’s tariff demands and threats to annex Greenland, European Union officials signaled in the spring that they would explore LNG deals with new partners, such as Canada, Qatar, and North African countries to hedge and reduce over-dependence on Washington.

The negotiations in March were a natural next step after Canadian Prime Minister Mark Carney and German Chancellor Friedrich Merz discussed LNG during a meeting in the German capital in August 2025, where the two countries reaffirmed their desire to build a hydrogen trade corridor.

In early June, Uniper and Ksi Lisims inked a preliminary deal by way of a letter of interest.

In a statement following the finalisation of the contract, Uniper’s CEO Michael Lewis made clear that the deal fills a critical need for Germany, and Europe more broadly to diversify supply with a trusted trade partner.

“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 diversify Europe’s energy supply and strengthens resilience against future disruptions. In an increasingly uncertain world, diversification is a strategic necessity,” Lewis said.

Germany was the most affected country by the EU’s decision to immediately halt imports of Russian pipeline gas following Russia’s invasion of Ukraine in February 2022.

Berlin is now moving fast to continue diversification after witnessing more external shocks in the form of Trump’s tariff demands and Qatar’s force majeure declaration following Iran’s attacks on its Ras Laffan LNG plant and closing of the Strait of Hormuz.

Germany was not heavily reliant on Qatari LNG, however QatarEnergy did have a deal with ConocoPhillips for delivery of cargoes to begin in 2026 from Qatar’s North Field East and North Field South projects to the German LNG import terminal of Brunsbüttel.

Meanwhile, Uniper is not the only German firm to sign a deal with Ksi Lisims. In June, another state-run German firm Securing Energy for Europe (SEFE) agreed to a 20-year LNG supply deal. The contract will see SEFE import 1 mn tpy beginning in 2030.

The $10 bn Ksi Lisims project is expected to be completed in 2029. The LNG plant is being developed in a partnership between Rockies LNG, Western LNG, and the Nisga’a Nation.

How Ksi Lisims gets the LNG to Germany is now under focus. In April, reports emerged that Uniper was examining the possibility of the cargoes being delivered via the Panama Canal.

Canada is also considering building an LNG export facility in the northern Manitoban community of Churchill. However, any facility there needs to be operating by 2030 if it is to get any federal support officials have indicated.

Ottawa is also thinking about converting Saint John LNG to an export terminal or building a facility on Newfoundland’s eastern coast in the town of Fermeuse. Both projects though are handcuffed by the fact that a pipeline would have to be built to extend out to Canada’s eastern maritime provinces.

Given that a number of European countries, including Germany, Greece, and Latvia have all at times expressed interest in purchasing Canadian LNG, it appears more likely that Ksi Lisims’ LNG will be delivered via a Canadian export terminal rather than through the Panama Canal.

In July, Canada and the provincial government of British Columbia inked a cooperation agreement to speed up development of Ksi Lisims LNG along with three other LNG projects. With Ksi Lisims’ deal with Uniper finalised now, a domino effect is likely to ensue with more announcements of LNG projects and infrastructure in Canada moving ahead.