SEFE Signs 20-Year Offtake Agreement with Canadian Ksi Lisims LNG

German state-backed energy trading group Securing Energy for Europe (SEFE) has entered into a binding 20-year sale and purchase agreement (SPA) to lift one million tonnes per annum (mtpa) of liquefied natural gas from the planned Ksi Lisims LNG export project on Canada's northwest coast, industry publisher Offshore Energy reported.

The long-term arrangement will supply SEFE with low-carbon LNG cargoes on a free-on-board (FOB) basis, with deliveries scheduled to commence in the early 2030s. The transaction marks the German firm's first multi-year LNG procurement contract with a Canadian supplier and follows an initial heads of agreement signed between the parties in May 2026.

Frédéric Barnaud, Chief Commercial Officer at SEFE, stated that the transaction represents an important step in diversifying the company's global LNG portfolio and securing reliable energy for customers, while supporting the broader transition toward a more sustainable energy system.

Offtake Commitments and European Ties

The Ksi Lisims LNG facility is being jointly developed by the Nisga’a Nation, Rockies LNG, and Western LNG. With the addition of SEFE's commitment, the project has secured binding long-term sales contracts for 7 mtpa of its planned 12 mtpa total capacity, alongside preliminary agreements covering a further 2 mtpa.

Davis Thames, Founder, President, and Chief Executive of Western LNG, said momentum behind the development is currently at its highest point, noting that the venture is positioned to support global supply security. Eva Clayton, President of the Nisga’a Lisims Government, highlighted that commercial milestones are bringing the facility closer to construction, delivering long-term employment, training, and revenue while demonstrating Indigenous co-development.

The venture previously obtained a 40-year export licence from the Canada Energy Regulator before penning its first commercial offtake contract with Shell. European buyer appetite for the Canadian project has grown in recent months, with fellow German energy company Uniper having concluded its own 20-year SPA for 2 mtpa of LNG from the terminal.

Project Timeline and Capital Requirements

Designed as a 12-mtpa liquefaction facility and marine export terminal, the facility is planned to take in between 1.7 billion and 2.0 billion cubic feet of feed gas per day. Commercial operations and overseas export shipments are projected to begin in late 2028 or 2029, with project sponsors aiming to achieve full commercialisation by the end of the year.

Initial capital expenditure for the installation has been estimated at approximately $7.4 billion (CAD 10 billion). However, independent analysis conducted by the Institute for Energy Economics and Financial Analysis indicates that capital costs could escalate to $19.2 billion (CAD 26 billion), subject to final facility design, infrastructure requirements, and shifting market conditions across major energy engineering projects.

Commenting on the transatlantic trade implications, Canadian Minister of Energy and Natural Resources Tim Hodgson remarked that the agreement reflects international confidence in Canadian natural resource infrastructure and aligns with federal efforts to diversify export markets for domestic gas reserves.