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Uniper and Ksi Lisims LNG have signed a letter of interest (LoI) outlining key commercial terms for a pending supply and purchase agreement, according to a statement by Uniper on Monday.
The SPA would see Uniper purchase 2 million tonnes per annum (mtpa) of LNG on a long-term basis, further strengthening its LNG portfolio’s diversification and adding to the security of supply, the company said.
Uniper could start receiving first volumes of LNG as early as 2032.
The company did not provide further details.
“Expanding and diversifying our LNG supply portfolio remains a key priority for Uniper. Canada offers an attractive environment with significant gas resources, strong political stability, and reliable regulatory frameworks. We see potential in projects like Ksi Lisims LNG to further enhance the resilience and flexibility of our supply portfolio,” Michael Lewis, CEO of Uniper, said.
This new LoI comes just two weeks after German gas and LNG importer Securing Energy for Europe (SEFE) signed a preliminary deal with Ksi Lisims LNG.
Under this heads of agreement, SEFE plans to purchase 1 mtpa of LNG for 20 years on a free-on-board basis from Ksi Lisims LNG. The deliveries are expected to begin in the early 2030s.
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.
Pending FID by the project co-developers, construction could begin by early 2027.
The partners plan 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.