A 20-year LNG supply deal has been signed by Canada’s Ksi Lisims project with German state-run firm Securing Energy for Europe (SEFE), Reuters reported on May 27.

The agreement will see the proposed Canadian project supply 1 mn tonnes per year (tpy) of the super-chilled fuel to Germany’s government-run gas importer for two decades beginning in 2030.

The non-binding deal is still reliant on a sales and purchase agreement being signed. It marks the first agreement inked between Canada and a European purchaser.

The Ksi Lisims project is located north of Prince Rupert at Wil Milit in British Columbia and will boast a production capacity of 12mn tpy upon completion in 2029. A final investment decision (FID) is expected to be taken later this year on the $10 bn project, which has yet to break ground.

The power plant is being developed in a partnership between Rockies LNG, Western LNG, and the Nisga’a Nation.

“Now more than ever, the world is asking for more reliable, low-carbon Canadian energy, and by moving projects forward in partnership with Indigenous Peoples and connecting our resources to that global demand,” Canadian Energy Minister Tim Hodgson said.

Canada and Germany have long been expected to ink LNG supply deals. In August 2025, Canadian Prime Minister Mark Carney and German Chancellor Friedrich Merz held discussions on LNG sales at a meeting in Berlin, where the two countries also reaffirmed their commitment to building a hydrogen trade corridor.

In April, reports surfaced that Germany’s state-owned Uniper was examining the possibility of buying LNG from the Ksi Lisims facility and utilizing the Panama Canal to transport the super-chilled fuel.

Canada is the world's fifth biggest natural gas producer and has been actively seeking to diversify its trade partners after US President Donald Trump’s tariff threats. Meanwhile, Europe has also grown weary of signing LNG deals with the US amid Trump’s threats to annex Greenland and slap more tariffs on the European Union.