First European LNG deal for Canada’s multibillion-dollar project

May 29, 2026, by Melisa Cavcic

A liquefied natural gas (LNG) project, being developed on Canada’s northwest coast to export lower-carbon LNG to markets in Asia, has obtained its first agreement with a European buyer.

A digital rendering of an LNG plant by the coast — Ksi Lisims LNG concept; Source: Rockies LNG

The Ksi Lisims LNG project, which was proposed by the Nisga’a Nation, Rockies LNG, and Western LNG, has secured a heads of agreement (HOA) with Germany’s Securing Energy for Europe (SEFE) for the sale and purchase of 1 million tonnes per annum (mtpa) of LNG. The deal is perceived to represent increasing global interest in Canada as a future LNG hub and in Ksi Lisims LNG as a supplier of choice.

“This agreement comes at a time when energy markets around the world are being asked to do more – to be more secure, more affordable, and more responsible from a climate perspective. The Ksi Lisims LNG project was designed from the outset to meet those expectations, not by compromise, but by design,” emphasized Davis Thames, Founder, President, and Chief Executive Officer of Western LNG.

“Our agreement with SEFE reflects growing confidence in Ksi Lisims LNG, our commercial and engineering approach, and brings our project a significant step closer to starting construction.”

Canada signals readiness to back LNG boom with go-ahead for $7.4 billion project

Authorities & Government

The sales to SEFE will be on a free on board basis for up to 20 years and are subject to the completion of a sales and purchase agreement (SPA). Ksi Lisims LNG is designed to be one of the lowest‑emissions LNG facilities in the world, leveraging clean hydroelectric power, significantly reducing lifecycle emissions compared to legacy facilities.

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), depending on final design, infrastructure scope, and market conditions due to the evolving financial landscape surrounding major energy infrastructure projects.

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.

This project will produce 12 million tonnes per annum of LNG from two floating LNG production and storage facilities. As global energy markets evolve, projects like Ksi Lisims LNG are said to show that energy security and climate responsibility can go hand in hand.