Düsseldorf-based utility Uniper has signed a letter of interest to buy 2 million tonnes of LNG per year from Ksi Lisims LNG, the $10 billion floating export terminal planned for Pearse Island, British Columbia. Deliveries could begin as early as 2032.
The letter outlines key commercial terms and is intended to lead to a binding supply and purchase agreement. It makes Uniper at least the fourth named buyer for the project, joining Shell, TotalEnergies, and German state-owned Securing Energy for Europe (SEFE).
SEFE signed its own deal in late May, locking in 1 million tonne per year over up to 20 years. Shell and TotalEnergies have each signed 20-year purchase agreements.
Uniper’s core markets span Germany, the United Kingdom, Sweden, and the Netherlands. That the two German entities, SEFE and Uniper, secured supply from the same B.C. project within weeks of each other points to Europe’s sustained push to source natural gas outside Russian supply chains. Together they account for 3 million tonnes per year of Ksi Lisims’s planned 12-million-tonne annual capacity.
The project has not yet reached a final investment decision. When that green light comes, its effects would reach well inland. Much of the feedstock would flow from the Montney region of northeastern British Columbia, near Fort St. John and Dawson Creek, and a positive FID is expected to drive upstream demand for Montney producers and the Peace Region’s broader service sector, including drilling, pipeline construction, and well completions.
Houston-based Western LNG leads development and would operate the terminal. Its partners include Rockies LNG, a consortium of Canadian natural gas producers, and the Nisga’a Nation, on whose lands the facility would sit.
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