Canada has reached a supply agreement to export liquefied natural gas from its Pacific coast to Germany, from the planned Ksi Lisims floating export project in British Columbia, Bloomberg reported on Tuesday.
German state-owned energy firm Securing Energy for Europe will underwrite long-term volumes from the Ksi Lisims LNG export project, the article said.
The proposed facility is a massive floating export development co-owned by Houston-based Western LNG, Canadian producer consortium Rockies LNG Partners, and the Nisga'a First Nation, who own the strategic development land near the Alaska panhandle.
Engineered with a design capacity of 12 million metric tonnes per annum the terminal will rank as Canada's second-largest LNG export facility.
While the asset has already secured key provincial and federal environmental approvals, securing firm, creditworthy international offtake agreements has been the primary bottleneck preventing developers from executing financial close.
With blockades in the Middle East restricting flows through the Strait of Hormuz and recent trade friction with the Trump administration in Washington, European buyers are eager to establish alternative gas supply sources.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)