VANCOUVER — Canada announced a 20-year liquefied natural gas export agreement with Germany on Wednesday in Vancouver, committing to ship one million tonnes annually from the Ksi Lisims project in British Columbia starting in the early 2030s. The deal, signed with Germany’s national energy utility Securing Energy for Europe (SEFE), marks Canada’s first long-term LNG export arrangement with Europe.

Canada's energy minister, Tim Hodgson, called the agreement "an exciting and important milestone." He said the deal resulted from a trade mission undertaken by Prime Minister Mark Carney and cabinet members to Berlin in August. Hodgson said he believes the new commitment will help secure funding for the Ksi Lisims project "in a matter of months" and that construction will begin shortly after.

The Ksi Lisims LNG project, located on Pearse Island near the Alaska border, is still awaiting a final investment decision despite having received necessary permits. British Columbia Premier David Eby said securing offtake agreements like the one with Germany is a key step before the project can proceed to that decision. The facility would be built on the territory of the Nisga'a Nation, which supports the development. Prime Minister Carney has designated the Ksi Lisims project as one of national importance, making it eligible for a fast-track regulatory review process.

Hodgson touted Canada's "reliable democracy" and access to rich natural resources as advantages in global energy markets. Currently, nearly all of Canada’s LNG exports go to the United States, according to data from Canada’s energy regulator. The new agreement with SEFE—the former German subsidiary of Gazprom, nationalized by Germany in 2022—aims to diversify Canada’s export destinations as Europe works to replace Russian gas supplies.

More than a dozen Indigenous and environmental groups oppose the Ksi Lisims project, calling it legally contested and environmentally risky. Some First Nations have launched legal challenges against it. Alex Walker, an Environmental Defence representative, said: "Ksi Lisims is not a Canadian export success story waiting to happen. It is a high-risk, legally contested fossil fuel project that has failed for decades to attract capital."