The German company Securing Energy for Europe (SEFE) has signed a twenty-year liquefied natural gas (LNG) supply contract with the Ksi Lisims project in Canada. This contract allows SEFE to supply one million tons of LNG per year on an FOB (Free on Board) basis and helps strengthen Europe's energy security in the changing global market.
Contract Details and the Ksi Lisims Project
The Ksi Lisims LNG project, which is being developed with the support of the Nisga’a Nation, has moved closer to the construction phase. The signed sales and purchase agreement (SPA) allows SEFE to deliver low-carbon liquefied natural gas to Asian markets starting in the early 2030s. The project currently has binding contracts for the supply of 7 million tons of LNG from its 12 million ton capacity.
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Frédéric Barnaud, Chief Commercial Officer of SEFE, stated: “This agreement is a significant step in diversifying SEFE's global LNG portfolio and securing sustainable energy sources for our customers.”
Economic and Social Implications
David Toms, founder and CEO of Western LNG, expressed hope that this collaboration will help SEFE secure reliable and low-carbon LNG sources. He added: “Securing and diversifying energy sources is essential for global economic prosperity, and the Ksi Lisims project meets these needs well.”
The Ksi Lisims LNG project is being developed with capital costs of approximately $7.4 billion (about CAD 10 billion) and is expected to see these costs rise to $19.2 billion (about CAD 26 billion) due to final design and market conditions. The project aims to achieve full commercialization by the end of this year.
Eva Clayton, President of the Nisga’a Lisims Government, said: “Every new agreement brings Ksi Lisims LNG closer to construction and operation, and to the job and income opportunities that generations have worked for.”
The project, with a capacity of 12 million tons per year, anticipates receiving 1.7 to 2 billion cubic feet of natural gas daily and plans to begin exports after commercial operations start in late 2028 or 2029.
The Ksi Lisims LNG project received a 40-year export license from the Canadian Energy Regulator (CER) two years ago and recently, German company Uniper signed a 20-year contract to supply 2 million tons of LNG with this project.
Tim Hudak, Minister of Energy and Natural Resources of Canada, regarded this agreement as a strong sign of confidence in Canadian energy and our ability to provide reliable resources for allies, adding: “With SEFE's commitment to purchase Canadian LNG for 20 years, we are seeing real results from our efforts to diversify trade and strengthen transatlantic energy security.”
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