Canada is set to enter into a major LNG supply agreement with Germany’s state energy firm SEFE, with Natural Resources Minister Tim Hodgson expected to make the announcement Wednesday in Vancouver.
The arrangement is to take the form of an offtake from the C$10 billion Ksi Lisims floating export facility, which is set to be built in British Columbia. The deal slots SEFE into a buyer list that already includes Shell and TotalEnergies, both of which have signed 20-year LNG purchase agreements with the project.
Three large European offtake commitments in hand is the kind of commercial foundation that typically precedes a construction green light — Ksi Lisims hasn’t reached a final investment decision yet, but the roster is starting to look serious.
The project itself is a joint effort among Western LNG, Rockies LNG Partners, and the Nisga’a Nation. Designed to export 12 million tonnes of LNG per year, Ksi Lisims would nearly matching the first phase of LNG Canada, the Shell-backed project that came online last year, in size. Much of the feedstock would be drawn from the Montney region of northeastern B.C., near Fort St. John and Dawson Creek.
A positive final investment decision would ripple well beyond the coast. Montney producers and the Peace Region’s broader service sector — drilling, pipeline construction, well completions — stand to see a meaningful lift in upstream demand if the SEFE announcement Wednesday starts the clock toward breaking ground.
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