In a move that deepens transatlantic energy ties and strengthens European security of supply amid a shifting global energy landscape, Germany’s Securing Energy for Europe (SEFE) has struck its first Canadian multi-year liquefied natural gas (LNG) deal to enable supplies from an LNG project, being developed on Canada’s northwest coast to export lower-carbon LNG to markets in Asia.
The Nisga’a Nation-backed Ksi Lisims LNG project is moving closer to its construction phase after securing a binding sale and purchase agreement (SPA) to supply German state-backed energy firm SEFE with one million tonnes per annum (mtpa) of LNG on a free-on-board (FOB) basis, with the European firm signing on for two decades of low-carbon exports starting in the early 2030s.
Frédéric Barnaud, SEFE’s CCO, underlined: “This agreement is an important step in further diversifying SEFE’s global LNG portfolio and securing reliable long-term energy supplies for our customers. Together with Ksi Lisims, we will help strengthen energy security while advancing the transition to a more sustainable energy system.”
This is SEFE’s first agreement with a Canadian LNG supplier. The SPA follows a heads of agreement (HOA) inked in May 2026. Ksi Lisims LNG now has binding contracts for 7 mtpa of its 12 mtpa capacity and preliminary agreements for an additional 2 mtpa.
Davis Thames, Founder, President, and CEO of Western LNG, commented: “We look forward to working with SEFE to provide its customers with reliable, low-carbon LNG.
“Secure and diversified energy supply is fundamental to global economic prosperity, and our project is uniquely positioned to meet these priorities. The momentum behind Ksi Lisims LNG is stronger today than at any point in its development and we are excited about the months to come.”
The Ksi Lisims LNG project was proposed by the Nisga’a Nation, Rockies LNG, and Western LNG. With capital costs of approximately $7.4 billion (around CAD 10 billion), the research done by the Institute for Energy Economics and Financial Analysis (IEEFA) suggests that the cost could surge to $19.2 billion (about CAD 26 billion) for the project.
This will depend on final design, infrastructure scope, and market conditions due to the evolving financial landscape surrounding major energy infrastructure projects. The Ksi Lisims LNG project remains on track to reach full commercialization by the end of the year.
Eva Clayton, President of Nisga’a Lisims Government, said: “Each new agreement brings Ksi Lisims LNG closer to construction, and closer to the jobs, training and long-term revenue our people have worked toward for generations.
“As a co-developer, our Nation is proving that Canada’s resources can reach world markets in a way that respects our lands and our rights. SEFE’s commitment shows the world is ready for that kind of partnership.”
The 12-mtpa natural gas liquefaction and marine terminal project is envisioned to receive 1.7–2 billion cubic feet of natural gas per day and export it overseas once commercial operations start in late 2028 or 2029.
The project obtained a 40-year export license from the Canada Energy Regulator (CER) two years before the first LNG offtake agreement was inked with Shell. Another German firm, Uniper, penned a 20-year SPA with Ksi Lisims LNG for the delivery of 2 mtpa of LNG a few months ago.
Tim Hodgson, Canada’s Minister of Energy and Natural Resources, stated: “This agreement is a powerful vote of confidence in Canadian energy and our ability to deliver the secure, reliable supply our allies need. With SEFE committing to purchase Canadian LNG for the next 20 years, we are seeing our ambition to diversify trade, strengthen transatlantic energy security, and make Canada a global energy superpower translate into real commercial results.
“Led by the Nisga’a Nation, Ksi Lisims LNG demonstrates how Indigenous partnerships, Canadian energy expertise, and federal initiatives like the Major Projects Office can come together to build major projects, create good-paying jobs, and open new markets for Canadian resources.”