Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeEnergyNewsKsi Lisims signs second deal to supply Germany with LNGThe proposed production hub on B.C.’s North Coast now has agreements totalling six million tonnes of LNG a year, half its expected capacityLast updated 13 hours ago You can save this article by registering for free here. Or sign-in if you have an account.A rendering of the Ksi Lisims LNG project in northern B.C. Ksi Lisims LNGThe Ksi Lisims LNG project on B.C.’s North Coast has finalized a contract to sell liquefied natural gas to the German power utility Uniper, the second deal it has struck with a German firm.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorKsi Lisims and Duesseldorf-based Uniper said in a joint statement Wednesday that the utility will buy up to two million tonnes a year of LNG over a 20-year term from the project’s planned floating LNG production facility.The firm supply agreement finalizes a letter of intent that Uniper and Ksi Lisims signed in June and becomes the project’s first, major, long-term deal with a utility in Germany where buyers are scrambling to diversify their supplies.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againIn their joint news release, Uniper CEO Michael Lewis said the deal “is about far more than LNG” for the utility. Signing it improves the strength of its overall portfolio from a reliable source in Canada.“As a trusted partner, Canada helps diversify Europe’s energy supply and strengthens resilience against future disruptions,” Lewis said. “In an increasingly uncertain world, diversification is a strategic necessity.”Uniper is a power utility and energy trading firm based in Germany with operations in the U.K., Sweden and the Netherlands.Federal Natural Resources Minister Tim Hodgson called the deal “a powerful example” of the role Canada wants to play in supplying energy to allies and “support global energy security.” International Trade Minister Maninder Sidhu added in a statement that the deal marks a step in Canada’s efforts to diversify its trade.For Ksi Lisims, being built by Houston, Texas-based Western LNG and backed by the Nisga’a Nation on whose territory the project will be located, the deal firms up agreements for six million tonnes of LNG per year, 50 per cent of the plant’s expected capacity, moving it closer to the threshold for a final investment decision.“We hope to have about 75 per cent committed before” a final investment decision, Ksi Lisims spokesperson Rebecca Scott said in an emailed answer to Postmedia News questions. That means another three million tonnes a year.Ksi Lisims, which Natural Resources Canada characterized as a $30 billion project, is aiming for a production capacity of 12 million tonnes a year from a floating terminal at Pearse Island, known as Wil Milit to the Nisga’a, 80 kilometres northeast of Prince Rupert on the North Coast.It has firm contracts with Dutch energy giant Shell PLC subsidiary Shell Eastern Trading Pte. Ltd and TotalEnergies, each for two million tonnes a year under similar 20-year terms.The project has an additional preliminary heads-of-agreement arrangement with another German gas utility, Securing Energy for Europe, to buy up to one million tonnes per year of LNG, which was unveiled at the end of May. Scott said they’re working on converting that into a binding agreement as well.“We’re very confident about achieving (the 75 per cent goal) in the coming months because of the advanced discussions we are in with several different buyers,” Scott said.Davis Thames, CEO of Western LNG, Ksi Lisims’ operating partner, said the Uniper deal is the start “of an important long-term relationship” with the utility.“Paired with an abundant hydro resource, Ksi Lisims LNG will be one of the lowest emission sources of LNG in the world,” Thames said in a news release. “We look forward to commercializing the rest of the projects so that we can move into construction shortly.”A critic of the project, however, argued Ksi Lisims is “a major step backwards” from the climate perspective, said Richard Brooks, climate finance director for the environmental group Stand.earth.Brooks called it “irresponsible and an abdication of leadership” to advance LNG development at the same time Europe and Canada are experiencing devastating wildfire seasons made worse by climate change.However, Ksi Lisims’ latest sales deal was announced while Europe is also facing impending deadlines to end its dependence on natural gas from Russia, which remains under sanction over its unwarranted war on Ukraine.The European Union, last December, committed to ending Russian LNG imports by the end of 2026 and gas by pipeline by the end of 2027. Last week, The New York Times reported that EU members are also becoming wary an overreliance on the U.S., which has become the world’s largest LNG exporter.Uniper spokesperson Charlotte Rockenbauer said the utility terminated its supply contracts with Russian energy giant Gazprom in 2022 and doesn’t have “any direct contractual relationships” with Russia for either pipeline gas or LNG.Rockenbauer added that the Ksi Lisims deal supports the diversification of its supply portfolio “with access to a reliable new source of supply from a trusted partner.”She said terms of the contract, which will see Uniper take delivery on a free-on-board basis at Ksi Lisims terminal, makes the LNG “fully destination-flexible.” That will allow the utility to trade with buyers in Asia that have contracted LNG cargoes from suppliers closer to Europe, which analysts expect to be the most likely outcome for Ksi Lisims’ output.Rockenbauer, in an email response to Postmedia questions, said destinations for its LNG will depend on market conditions.“Some volumes may be delivered to Europe, some to Asia, and others may be swapped depending on market needs,” she said.However, Rockenbauer said that in times of market disruption “these volumes can support security of supply in Germany and Europe.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.