The agreement was announced on Wednesday in Vancouver by Canadian Energy Minister Tim Hodgson, who described it as an “important and exciting milestone.”
The agreement stipulates the shipment of one million tons annually of liquefied natural gas from the proposed “Ksi Lisims” project on the coast of British Columbia to Germany, through the German energy company “Securing Energy for Europe.”
Under the deal, liquefied natural gas will be exported from Canada to Germany for a period of up to 20 years, starting in the early 2030s.
This step is important for Canada, which in 2024 was directing most of its liquefied natural gas exports to the United States, according to data from the Canadian Energy Regulatory Authority.
Hodgson said that the agreement shows Canada’s ability to fill a gap in global energy supplies, left by Russia after the invasion of Ukraine, and which has recently deepened with the ongoing war in Iran, praising what he described as Canada’s “reliable democracy” and its rich natural resources.
The agreement with Germany represents a milestone for the Ksi Lisims LNG project on the Pacific coast of northwestern British Columbia, although it is still awaiting a final investment decision.
Hodgson said he believed the new commitment would help secure financing “within months”, with construction work to begin shortly thereafter.
Canadian Prime Minister Mark Carney has stressed that the project is of national importance, making it eligible for a fast-track review. Hodgson also explained that the agreement came as a result of a trade mission carried out by Carney and members of his government to Berlin last August.
Although the government praised the agreement, the project still faces objections from indigenous groups and environmental organizations, which warned of its legal and environmental risks.
Alex Walker of Environmental Defense, an organization opposed to the project, said that Ksi Lisims is not a Canadian export success story, but rather a high-risk, legally disputed project that relies on fossil fuels.
In return, the project has the support of the Nisga’a Nation, whose territory will include the LNG facility.
Carney is also facing pressure from within his Liberal Party regarding the climate file, as 14 liberal representatives signed a letter expressing their concern about the government’s retreat from its environmental commitments.
In the same context, former Environment Minister Stephen Guilbeault announced that he would resign from Parliament this summer, after he was one of the most prominent environmental activists in Greenpeace before entering politics.
In response to his departure, Hodgson said Carney’s Liberals were a “broad party” with multiple views, adding: “Ultimately, we come together, form a collective vision, and implement it.”
In a separate file, Carney announced that Canada would purchase early warning aircraft technology from a Swedish company, instead of competing American companies, confirming his country’s intention to reduce spending on military equipment made in the United States. (BBC)
