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Canada and Germany Strengthen Their Energy Partnership
Uniper and Ksi Lisims LNG signed the first major long-term liquefied natural gas (LNG) supply agreement between the two countries. © picture alliance/dpa | Philip Dulian
A significant milestone in Canada–Germany relations was reached on July 29, when Uniper and Ksi Lisims LNG signed the first major long-term liquefied natural gas (LNG) supply agreement between the two countries.
Signed in Berlin in the presence of Germany's Federal Minister for Economic Affairs and Energy, Katherina Reiche, and Canada's Ambassador to Germany, Vera Alexander, the agreement provides for the delivery of 2 million tonnes of LNG per year over a period of up to 20 years, with first shipments expected from 2032.
The agreement comes at a time when both Canada and Germany are seeking to strengthen energy security and diversify supply chains. For Germany, the agreement represents an important step in its long-term energy strategy. The contracted volume—around 30 terawatt hours (TWh) annually—would correspond to roughly one quarter of Germany's current LNG imports. Given the scale of Germany’s energy needs, partnerships with a range of reliable suppliers will continue to play an important role in ensuring a secure and diversified energy supply.
For Canada, the agreement marks another important step in expanding energy exports beyond its traditional markets. More than 90 percent of Canada's oil and natural gas exports currently go to the United States, making export diversification an important strategic priority. New LNG projects on British Columbia's west coast—including LNG Canada, Woodfibre LNG, Cedar LNG and Ksi Lisims LNG—are expected to open new opportunities to supply partners in Europe and the Asia-Pacific region.
British Columbia is positioning itself as an important future LNG supplier to international markets. Powered largely by hydroelectricity, the province has one of the lowest-carbon electricity grids in North America, creating favourable conditions for lower-emission LNG production. Projects such as Ksi Lisims LNG are designed to use renewable hydroelectric power for the liquefaction process, significantly reducing emissions compared with conventional LNG facilities. Once connected to BC Hydro's grid, Ksi Lisims LNG is expected to become one of the world's lowest-emission LNG facilities.
Another defining feature of the project is its partnership with the Nisg̱a’a Nation, which is co-developing Ksi Lisims LNG alongside Western LNG and Rockies LNG. The collaboration combines Indigenous leadership, resource development expertise and international cooperation, with a focus on long-term economic opportunities and responsible development.
Today‘s signing shows that Germany and Canada want to deliver fast. To the benefit of our businesses, our people; to the benefit of Canadians, British Columbians and the Nisga‘a Nation. Our partnership is entering into a new era, be it in energy, technology or defence. We are proud to be reliable and trusted partners of our Canadian friends.
German Ambassador Tjorven Bellmann