Second German company looks to secure LNG supply from B.C. Ksi Lisims

A second German utility has expressed interest in purchasing liquefied natural gas from the Ksi Lisims project planned for the northern British Columbia coast, as the plant’s partners approach a final go-ahead decision.

Duesseldorf-based Uniper and Ksi Lisims LNG said Monday that they have signed a letter of interest that could see the company buy two million tonnes of gas a year, with deliveries beginning as early as 2032.

The letter of interest outlines key commercial terms for a firmer supply and purchase agreement with Uniper, whose core markets are Germany, the United Kingdom, Sweden and the Netherlands.

Uniper has 18.5 gigawatts of power generating capacity and is a major LNG importer in northwestern Europe. The German government took it over amid the 2022 energy crisis following Russia’s invasion of Ukraine, but is now in the process of privatizing it.

Diversifying Uniper’s portfolio of LNG supply is a key priority, CEO Michael Lewis said in a news release.

“Canada offers an attractive environment with significant gas resources, strong political stability and reliable regulatory frameworks,” he said.

“We see potential in projects like Ksi Lisims LNG to further enhance the resilience and flexibility of our supply portfolio.”

Houston-based Western LNG is the lead developer and future operator of Ksi Lisims alongside Rockies LNG, a consortium of Canadian natural gas producers, and the Nisga’a Nation, on whose lands the project would be located. The floating plant would export up to 12 million tonnes of LNG per year from the site on Pearse Island by the Alaska border.

The $10-billion project has regulatory approval but the partners have yet to make a final investment decision. Locking down long-term supply deals is a key step toward that milestone.

“This project, and Europe’s interest in it, demonstrates how energy security, climate responsibility, and community-focused economic development can be achieved together,” said Davis Thames, CEO of Western LNG.

LNG is natural gas that has been chilled into a liquid state, enabling it to be shipped by sea on specialized tankers.

Late last month, German government-owned company Securing Energy for Europe, or SEFE, signed a long-term agreement to buy one million tonnes of LNG per year from Ksi Lisims over an up to 20-year span.

WATCH | Canada secures buyer for LNG from British Columbia:

Canada secures German buyer for Ksi Lisims LNG project in B.C.

The Federal Energy Minister announced Canada’s first major LNG supply agreement. The deal between Ksi Lisims LNG in B.C. and German energy company SEFE will see Canada export one…