Uniper has signed a letter of interest to buy 2 million tonnes per year of LNG from Canada’s planned Ksi Lisims LNG export project.
The two companies have agreed on key commercial terms for a potential long-term LNG supply and purchase agreement covering 2 million tonnes per annum, with first deliveries possible from 2032. The volumes would come from the proposed 12 mtpa floating LNG export facility on the northwest coast of British Columbia.
The deal underscores Europe’s continued push to diversify LNG supply after the loss of Russian pipeline gas, while also giving Canadian LNG developers a potential foothold in European markets. Ksi Lisims LNG is being developed by the Nisga’a Nation, Rockies LNG and Western LNG, with gas expected to be supplied through the Prince Rupert Gas Transmission pipeline from the Western Canadian Sedimentary Basin.
The project is designed to use British Columbia’s hydroelectric grid, which the developers say could cut greenhouse gas intensity by up to 90% compared with conventional LNG facilities. Ksi Lisims LNG and the PRGT pipeline have secured key environmental approvals and have been identified by Canada as Projects of National Interest. A final investment decision is still pending, with construction potentially starting in early 2027.
By Charles Kennedy for Oilprice.com