Canada and Germany are preparing a historic agreement on LNG supplies
This week, Canada and Germany may announce the signing of the first-ever large-scale agreement to export liquefied natural gas (LNG) from British Columbia, Canada, to Europe.
CBC News learned this from its own sources.
According to CBC News sources, the deal is set to be signed by the Canadian company Ksi Lisims LNG and the German energy company SEFE.
The agreement is expected to provide for the supply of one million metric tons of LNG annually.
British Columbia Energy Minister Adrian Dix did not directly confirm the parties to the agreement, but acknowledged that the company is actively working to enter international markets.
“Ksi Lisims has obviously been working on expanding markets around the world, so this is their announcement,” he told reporters.
Canadian Energy Minister Tim Hodgson is expected to announce the official details of the agreements during a speech in Vancouver.
The topic of his statement is “international energy exports.”
British Columbia Premier David Eby welcomed the upcoming deal and emphasized its importance for launching the project.
“Part of the work required to make a final investment decision involves signing off-take agreements—commitments to purchase LNG from the facility. So, this important announcement of an LNG purchase by a European partner brings us closer to that goal,” he said.
The deal is expected to strengthen the energy partnership between Canada and Europe, help Germany diversify its gas supplies, and serve as an important step in reducing the EU’s dependence on Russian energy resources.
Earlier, India rejected Russia’s proposal to purchase liquefied natural gas subject to U.S. sanctions. Despite energy shortages amid the escalating situation in the Middle East, the Indian side decided not to take the risk due to the sanctions.
It has become clear why India rejected Russian gas – Reuters.
Russia has added four tankers for transporting liquefied natural gas to its “shadow fleet” in an attempt to strengthen its market position ahead of EU restrictions.
The European Union may impose sanctions against individuals and companies suspected of facilitating the transport to the port of Haifa (Israel) of grain exported from the temporarily occupied territories of Ukraine.
