Germany turns to B.C. for long-term LNG supply in major energy security deal | Daily Hive

Germany turns to British Columbia for long-term LNG supply in major energy security agreement

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The Government of Canada has announced a landmark energy agreement that would send Canadian liquefied natural gas (LNG) to Europe for the first time.

The deal, announced Wednesday in Vancouver, involves Ksi Lisims LNG and Germany’s state-owned energy company, Securing Energy for Europe (SEFE).

Under the agreement, SEFE would purchase one million tonnes of LNG annually for up to 20 years, with shipments expected to begin in the early 2030s.

Federal and provincial leaders said the agreement strengthens Canada’s trade diversification efforts at a time of global economic uncertainty, while also positioning the country as a long-term supplier of lower-emission energy to European markets.

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The proposed Ksi Lisims LNG project is located on the northern coast of British Columbia and is being developed through a partnership between Western LNG, Rockies LNG Partners and the Nisga’a Nation. Once operational, it would become Canada’s second-largest LNG export terminal, capable of exporting up to 12 million tonnes of LNG per year.

The project has already received major environmental and regulatory approvals from both the federal and provincial governments. In September 2025, it was approved under the joint “one-project, one-review” process and was later added to Prime Minister Mark Carney’s Major Projects Office list.

Federal natural resources minister Tim Hodgson said the agreement reflects growing international demand for Canadian energy exports.

“Today’s agreement between Ksi Lisims LNG and SEFE is about much more than energy – it is about delivering on our promise to build a stronger, more sovereign economy that generates opportunities and prosperity for Canadians,” said Hodgson.

“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, we are demonstrating what it means to be a 21st-century energy superpower.”

B.C. Premier David Eby said the provincial government had supported the project for years and credited co-operation between governments for advancing the agreement.

“B.C. has championed Ksi Lisims LNG for years and successfully pushed for it to be added to the federal major projects list,” said Eby.

“B.C. is thankful to the federal government for working on this landmark deal that is a prerequisite to a final investment decision.”

Provincial officials say the project could attract nearly $30 billion in investment and create thousands of construction and long-term operating jobs. The federal government estimates the development could contribute more than $15 billion to Canada’s GDP.

The project is also being promoted as one of the world’s lowest-emission LNG facilities. The facility is expected to be fully electrified through BC Hydro’s hydroelectric connections and is required to be net-zero ready by 2030.

Germany has been seeking new energy suppliers since reducing dependence on Russian natural gas following geopolitical tensions in Europe. German energy minister Katherina Reiche said the agreement reflects growing ties between Canada and Germany.

“This agreement is more than just a gas supply contract — it is the expression of a strategic partnership between Germany and Canada in the field of energy supply,” said Reiche.

“Germany and Canada are linked by a close partnership based on shared values and mutual trust. Through closer co-operation, we are diversifying our procurement channels and making our economies more resilient in the face of global risks.”

The agreement still depends on the finalization of a formal sales and purchase contract between SEFE and Ksi Lisims LNG before exports can begin.

When then-German Chancellor Olaf Scholz visited Canada in 2022 to meet with then-Prime Minister Justin Trudeau, he urged Canada to quickly increase its natural gas exports to help Europe reduce its energy dependence on Russia amid Russian aggression against Ukraine.

However, Trudeau rejected the request at the time and asserted there has “never been a strong business case” for liquid natural gas (LNG) export projects from Canada’s East Coast. Following the rejection, in late 2022, Germany reached an agreement with Qatar to supply LNG through the 2040s.

Then, in 2023, Japanese Prime Minister Fumio Kishida visited Trudeau to pitch a similar request for Canada to increase its LNG exports from British Columbia to Japan amid growing shortages caused by Russia’s war on Ukraine. However, Trudeau declined this request from another ally.

Since then, given the current harsh geopolitical, economic, and national security realities, the Liberals have come under fire for their policies that prioritized long-term climate action considerations.

Today’s major bilateral economic announcement also coincided with Steven Guibeault’s decision to resign from his seat as the MP of the riding of Laurier-Sainte-Marie later this summer, which will trigger a by-election at a later date. Guilbeault left Carney’s cabinet in November 2025, after the federal government’s energy agreement with Alberta.

Guilbeault was the federal minister of environment and climate change from October 2021 to March 2025 under Trudeau’s administration, and briefly the minister of Canadian identity and culture following the cabinet reshuffle after the general federal election from March 2025 to November 2025.

Prior to entering federal office in 2019, Guilbeault was a longtime environmental activist, including serving as a director of Greenpeace.

“This decision is the result of careful consideration. After almost seven years as a Member of Parliament and Minister, I have come to the conclusion that it is time for me to pursue my fight for environmental protection and the fight against climate change in a different way,” said Guilbeault in a statement today.

“Around the world, we have demonstrated what we can accomplish with ambition and determination. It is with this same conviction that I wish to continue this fight for the generations who will inherit our precious and unique blue planet.”

In reaction to his resignation, Carney thanked Guilbeault for his leadership to date with the Liberal party.

“I am grateful to Steven for his leadership and expertise, both as a Cabinet colleague and as a member of our caucus,” said Carney.

“Our government shares this commitment to climate ambition, climate competitiveness, and the preservation of Canada’s extraordinary natural heritage. We are pursuing these missions with the same determination, a new spirit of partnership, and renewed focus on results that will support Canadian families today and ensure a better future for our children and grandchildren tomorrow.”

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