Canada has signed a major long-term energy agreement with Germany that will see one million tonnes of liquefied natural gas (LNG) exported annually from British Columbia to Europe beginning in the early 2030s. The deal involves the proposed Ksi Lisims LNG project and Germany’s state-owned energy company SEFE, marking Canada’s first long-term LNG supply arrangement with Europe.

Canadian Energy Minister Tim Hodgson said the agreement is an important step in diversifying Canada’s trade and energy exports beyond the United States, which currently receives nearly all of the country’s LNG shipments. He said the partnership also highlights Canada’s role as a stable and reliable energy supplier amid global uncertainty caused by the Russia-Ukraine war and tensions in the Middle East.

The agreement is expected to strengthen support for the Ksi Lisims LNG project, which still awaits final investment approval and faces opposition from environmental organisations and some Indigenous groups over climate and legal concerns. While the Nisga’a Nation backs the project, critics argue it poses environmental risks and may struggle to secure financing. The deal comes as Prime Minister Mark Carney pushes for faster energy development while balancing growing climate concerns within his Liberal Party.

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