Canada strikes long-term liquefied natural gas export deal with Germany
Canada has reached a long-term agreement to export liquefied natural gas to Germany, marking a significant step as both countries seek to reduce reliance on traditional energy partners and strengthen trade ties amid global geopolitical uncertainty, according to officials familiar with the deal.
Under the agreement, Canada will export up to one million metric tons of liquefied natural gas per year from a planned terminal on the Pacific coast in British Columbia. Shipments are expected to begin in the early 2030s and continue for roughly two decades, the officials said. The deal is set to be formally announced and signed at the Canadian Embassy in Berlin.
The agreement comes as global energy markets continue to shift following disruptions tied to the war in Ukraine and instability in the Middle East. Germany, which has worked to replace Russian energy supplies since 2022, has been actively seeking diversified long-term sources of natural gas. Canadian officials, meanwhile, have been working to expand export markets beyond the United States, which currently receives the vast majority of Canada’s energy exports.
The arrangement is also seen as a key milestone for Canada’s broader strategy to expand its energy footprint globally. Prime Minister Mark Carney has prioritized increasing Canadian exports to non-U.S. markets, particularly as trade tensions with Washington have grown in recent years.
The gas is expected to originate from the proposed Ksi Lisims LNG project in British Columbia, which has received regulatory approval but has not yet been fully financed. If completed, it would become one of the largest liquefied natural gas facilities in Canada.
Officials said the shipments could move through multiple routes depending on global market conditions, including via the Panama or Suez canals, or through indirect “swap” arrangements in which cargoes are traded between regions to optimize delivery costs.
For Germany, state-backed energy buyer Securing Energy for Europe views the deal as a strategic investment in long-term supply security, even if Canadian LNG may come at a higher cost than alternatives, due to the importance of stable and diversified energy access.
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