Canada is expected to sign a deal to ship liquefied natural gas (LNG) to Germany as Ottawa looks to diversify trade away from the U.S.
The Canadian LNG will be sent to Germany from the Ksi Lisims export facility on the coast of British Columbia, according to media reports.
The agreement comes as Canada’s federal government looks to finalize contracts with purchasers of the liquefied natural gas before making a final investment decision regarding the B.C. export terminal.
So far, oil majors Shell (SHEL) and TotalEnergies (TTE) have signed 20-year LNG purchase agreements with the Ksi Lisims export facility.
Once completed, the Ksi Lisims facility will have capacity for 12 million tonnes of LNG per year, making it Canada’s second-largest LNG export facility.
European buyers, including Germany, plan to purchase LNG from Canada’s Pacific coast and ship it through the Panama Canal as part of a long-term strategy to diversify their energy supply.
European countries have been trying to diversify their energy products away from Russia since the Ukraine war erupted.
