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Under the heads of agreement, SEFE plans to purchase 1 mtpa of LNG for 20 years on a free-on-board basis from Ksi Lisims LNG, according to separate statements by SEFE and Germany’s Federal Ministry for Economic Affairs and Energy on Wednesday.
The deliveries are expected to begin in the early 2030s.
The agreement marks SEFE’s first long-term LNG partnership with a Canadian supplier.
SEFE has been quite active over the past two years, signing LNG purchase agreements.
The state-owned firm signed a contract with Adnoc, Delfin LNG, Venture Global LNG, Botas, and Southern Energy.
SEFE also recently launched a tender for medium-term LNG deliveries covering the period 2027 to 2036.
“This LNG agreement with Canada is a milestone in our endeavor to secure energy supplies. After signing LNG contracts with Argentina, the Middle Eastm and the USA, we are proud to announce our first long-term LNG agreement with Canada. This partnership gives us the flexibility to deliver cargoes to any destination, thus further enhancing the resilience and diversification of our portfolio for the benefit of our global customers,” Egbert Laege, SEFE CEO, said.
Ksi Lisims LNG, a joint venture of the Nisga’a Nation, Rockies LNG, and Western LNG, has yet to make a final investment decision on its project.
It plans to produce 12 million tonnes per annum of LNG from two nearshore floating production facilities, which will have integrated storage with an aggregate capacity of about 450,000 cbm of LNG.
Ksi Lisims LNG signed the first long-term offtake deal with a unit of LNG giant Shell in January 2024.
Under the 20-year SPA, Ksi Lisims will supply 2 million tonnes of LNG per year on a free-on-board basis to Shell Eastern Trading.
Last year, French energy giant TotalEnergies signed a 20-year deal with KSI Lisims LNG to buy 2 mtpa of LNG for 20 years from the future liquefaction plant.
In addition, TotalEnergies will also take a 5 percent stake in Western LNG, the developer, shareholder, and future operator of the Ksi Lisims LNG project.
US-based private equity firm Blackstone also invested in Western LNG.
(Updated with a SEFE statement.)
