Canada and Germany Reach First LNG Supply Deal

(Patria) - Canada and German state-owned energy company SEFE announced yesterday that they have reached what Canada described as its first LNG supply deal with a European buyer, Reuters reported.

The non-binding agreement outlines SEFE’s intention to purchase one million metric tons of liquefied natural gas (LNG) annually from Canadian company Ksi Lisims, via a proposed LNG export facility to be located on British Columbia’s Pacific coast.

The deal is contingent on the finalization of a sale and purchase agreement.

The agreement represents Canada’s effort to expand exports and Europe’s effort to secure alternative supplies following the loss of Russian gas and renewed disruptions related to the war in Iran.

SEFE already has LNG contracts with U.S. company Venture Global, Argentinian company Southern Energy S.A., and Turkish state-owned energy company BOTAS as it works to diversify Germany’s energy supply.

Canada, the world’s fifth-largest producer of natural gas, is seeking to increase energy exports to protect its economy from the threat of U.S. President Donald Trump’s trade policies.

Prime Minister Mark Carney traveled to Germany in August 2025 to present Canada as a reliable energy supplier for Europe.