Canada to Supply LNG to Germany in New Deal: Competition for U.S. but not in Current High Demand Scenario: Canada Pivots to Europe as U.S. Relations Sour a Bit

     As EU countries continue to seek alternatives to Russian gas and as Canada remains tiffed at the U.S. about trade issues, Canada has announced that it will supply Germany with LNG via an export terminal to be built on its West Coast in British Columbia. The Ksi Lisims export terminal will be completed and ready to export sometime in the early 2030s, with a 20-year deal to supply Germany’s national energy utility company, Securing Energy for Europe (SEFE).  

     Trade tiffs between Trump and Canada’s leader Mark Carney have led to Carney to diversify its trade away from the U.S. The Ksi Lisims project is still awaiting its final investment decision (FID), but the new deal makes the FID likely to go forward. Carney has deemed the project to be of national importance and will likely fast-track it. The deal is a result of a trade mission undertaken by Carney and members of his cabinet last August to Berlin.

     Environmental and indigenous groups oppose the project and will likely do what they can to block and delay it. However, one indigenous group, the Nisga'a Nation, whose territory would house the Ksi Lisims LNG facility, supports the project.

     The BBC also notes that Carney has recently dissed U.S. tech for Swedish tech for early warning aircraft, in another sign of diversifying from U.S. trade.

“Carney announced that Canada will be purchasing early warning aircraft technology from a Swedish manufacturer instead of US contenders.”

“Carney has said Canada will reduce spending on US-made military gear, saying last April that "the days of our military sending 70 cents of every dollar to the United States are over".     

     Ksi Lisims is a proposed 12-million-tonne-per-year liquefied natural gas (LNG) project on Pearse Island on the northwest coast of British Columbia, Canada. It is planned to be powered with Canadian hydropower, to purchase carbon offsets, and to have much lower emissions than other LNG projects.

 

References:

 

Canada signs landmark LNG energy deal with Germany. Nadine Yousif. BBC. May 27, 2026. Canada signs landmark LNG energy deal with Germany

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