FIRMING UP THE DEAL: Germany’s Uniper Firms Up 20-Year LNG Purchase Deal with Canada

(Reuters) – German state-controlled energy group Uniper on Wednesday finalised a 20-year liquefied natural gas purchase ​deal with Canada as the two nations ‌deepen their partnership.

In a preliminary deal in June, Uniper took initial steps to secure 2 million tons of gas per ​year from 2032 from Canada’s LNG project ​Ksi Lisims on British Columbia’s Pacific coast.

That was ⁠after another German state-owned gas importer, SEFE, ​secured some Ksi Lisims capacity in May. Uniper already agreed ​on long-term purchases with Canada’s Tourmaline  a year ago.

Those deals reflect European ambitions to bolster alternative gas routes after former main ​supplier, Russia’s Gazprom stopped delivering in 2022, ​creating reliance on U.S. supplies.

Ksi Lisims is backed by Western LNG, ‌the ⁠Rockies LNG consortium and the Nisga’a First Nation. Gas liquefaction will be powered by hydroelectric dams.

Reuters reported in March that Uniper was discussing more ​gas purchases with ​Canada, also ⁠to diversify away from U.S. supplies that accounted for 96% of Germany’s ​LNG imports last year.

Canada is keen to ​reduce ⁠dependency on U.S. buyers with export deals involving Japan, India and Malaysia.

Canada this month picked Germany’s TKMS  to supply 12 submarines – ⁠seen ​as a likely trigger of ​follow-up contracts including on rare earths, batteries or energy.

Reporting by Holger ​Hansen, writing by Ludwig Burger, editing by Thomas Seythal

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