German energy company Uniper has signed a letter of interest with Canada’s Ksi Lisims LNG for a possible offtake agreement of 2 million tonnes of LNG per year — the second such deal between a major German energy firm and the proposed British Columbia export terminal in as many months.
Uniper and Ksi Lisims Sign Letter of Interest
The letter of interest formalizes discussions that had already been circulating in energy markets. Reuters had previously reported that Uniper was in talks to secure Canadian LNG, with Ksi Lisims named as a project of specific interest. Those talks have now produced a concrete — if still provisional — agreement.
Under the terms of the letter of interest, Uniper could offtake 2 million tonnes of LNG per year from the proposed facility. The company stated the deal would further diversify its procurement portfolio and strengthen its overall security of supply. A letter of interest does not constitute a binding contract, but it signals serious commercial intent from both parties.
The deal arrives just weeks after German peer SEFE signed a similar agreement with the same Canadian terminal. Two major German energy companies targeting the same facility in quick succession is not coincidence — it reflects a deliberate strategic direction.
Why Germany Is Turning to Canadian LNG
The driving force behind Germany’s pivot toward Canadian LNG is well-documented. Russia’s Gazprom halted gas deliveries to Europe in 2022, leaving German and other European utilities scrambling to replace a supply source they had relied on for decades. The search for alternatives has continued ever since.
Canada’s Pacific coast LNG projects offer something genuinely new: a westward export corridor that bypasses traditional Atlantic supply routes. For European buyers, this represents a meaningful diversification of geography — not just supplier.
The Uniper deal captures both sides of that equation. Canada is actively seeking to expand its LNG export capacity and lock in long-term buyers, while Europe — Germany in particular — needs reliable, non-Russian gas sources. The letter of interest is, in that sense, a meeting of complementary needs rather than a one-sided arrangement.
Project Timeline and Capacity
Ksi Lisims LNG is a proposed export facility on British Columbia’s Pacific coast with a planned total capacity of 12 million tonnes per year — a substantial addition to global LNG supply if it reaches completion.
Current projections suggest construction could begin as early as 2027. That timeline remains several years out, and proposed energy infrastructure projects frequently face delays. Still, the schedule gives European buyers a working horizon to plan around.
For Uniper specifically, the earliest it could begin receiving LNG volumes from Ksi Lisims is 2032. That is a long lead time by most commercial standards, underscoring that these deals are about long-term supply security rather than patching any immediate shortfall.
A 12-million-tonne facility with multiple offtake agreements already in place — Uniper’s 2 million tonnes, SEFE’s separate deal — suggests the project’s developers are methodically assembling a committed buyer base before finalizing construction decisions.
Context: Europe’s Ongoing Search for Energy Alternatives
Germany’s energy situation since 2022 has required a fundamental rethink of supply strategy. When Gazprom ceased deliveries, Germany faced a structural gap that spot market purchases and emergency storage drawdowns could only partially address. The longer-term response has involved pursuing LNG agreements across multiple continents — North America, the Middle East, Africa — as European utilities work to replace Russian pipeline volumes with diversified supply. No single agreement fills the gap. The strategy is accumulation and geographic spread.
The back-to-back moves by SEFE and Uniper toward Ksi Lisims suggest that Canadian LNG has shifted from a theoretical option to an active procurement target for German energy companies. Reuters had flagged Uniper’s interest in Ksi Lisims volumes ahead of this announcement, indicating the deal had been in development for some time.
Two German Powerhouses Invest in One Canadian Project
Uniper’s letter of interest with Ksi Lisims LNG represents a provisional but meaningful step in Germany’s post-2022 energy realignment. The deal covers 2 million tonnes of LNG per year from a proposed British Columbia facility with a total planned capacity of 12 million tonnes annually.
Construction of the terminal could begin in 2027, with Uniper potentially receiving first volumes in 2032. The agreement follows a similar deal by SEFE last month — two German energy majors committing, at least provisionally, to the same Canadian project. Taken together, the deals reflect both Canada’s ambitions as an LNG exporter and Europe’s continued drive to build durable alternatives to Russian gas supply.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
