Canada to sign large-scale LNG deal with Germany: Reuters source

Minister of Energy and Natural Resources of Canada, Tim Hodgson, makes an announcement regarding liquefied natural gas with B.C. Minister of Energy and Climate Solutions Adrian Dix, left, and B.C. Premier David Eby, in Vancouver on Thursday, May 14, 2026.

Canada will sign a large-scale LNG agreement with Germany’s SEFE for liquefied natural gas from the Ksi Lisims planned export facility on the coast of British Columbia, according to an industry source.

The agreement, to be announced Wednesday in Vancouver by Natural Resources Minister Tim Hodgson, comes as Ksi Lisims’ backers have been working to finalize contracts with purchasers before making an expected final investment decision this year.

Ksi Lisims, SEFE and Canada’s natural resources ministry declined to comment.

Bloomberg first reported the plans.

Shell and TotalEnergies have already signed 20-year LNG purchase agreements with Ksi Lisims.

The Ksi Lisims facility is proposed by Houston-based Western LNG, a consortium of Canadian natural gas producers called Rockies LNG, and the Nisga’a First Nation, who own the land for the project. It will have a capacity of 12 million tonnes of LNG per year, making it Canada’s second-largest LNG export facility.

SEFE, short for Securing Energy for Europe, was nationalized by Germany for 6.3 billion euros in 2022 after former parent Gazprom GAZP.MM ditched the business during Europe’s energy crisis.

Like Uniper UN0k.DE, the company is tasked with diversifying Germany’s energy supply, especially in the wake of the current Middle East conflict that has increased European interest in energy security.

SEFE already has a variety of LNG deals that include agreements with U.S.-based Venture Global VG.N, Argentina’s Southern Energy S.A. and Turkey’s state energy company BOTAS, among others.

Reuters reported last month that European buyers, including Germany’s Uniper, are exploring the possibility of purchasing liquefied natural gas from Canada’s Pacific coast and shipping it through the Panama Canal as part of a long-term strategy to diversify supply, an effort made more urgent in the wake of the Iran war.

Reporting by Amanda Stephenson and Christoph Steitz; Editing by Mark Porter and Deepa Babington