Ksi Lisims signs binding deal to supply SEFE with 1 million tonnes of LNG a year
Key Facts
Ksi Lisims LNG and Germany’s SEFE have signed a binding sale and purchase agreement for the supply of 1 million tonnes of LNG a year for 20 years, with deliveries due to begin in the early 2030s, according to a report published by The Canadian Press via EnergyNow. The agreement moves the relationship between the parties to a long-term contract after an initial memorandum of understanding signed in May 2026. The project is on the northern coast of British Columbia, near the border with Alaska. The deal comes as the project continues to seek supply agreements before reaching a final investment decision. SEFE said it would buy "1 million tonnes of LNG a year for 20 years."
After the agreement with SEFE, binding contracts cover 7 million tonnes a year of the project’s total capacity of 12 million tonnes a year, according to The Canadian Press. This leaves some of the announced capacity outside binding contracts at the time of publication. The report said two additional deals remain at an early stage, without giving their volumes or expected completion dates. The SEFE contract is part of a broader effort to secure buyers for the project’s output, while negotiations on other agreements continue. The figures show the extent of contractual coverage relative to planned annual capacity, while the completion of the preliminary deals remains contingent on their next stages.
The relationship between SEFE and Ksi Lisims began with an initial memorandum of understanding in May 2026 before becoming a binding sale and purchase agreement. The project brings together partners from Canada’s gas sector, with Houston-based Western LNG serving as lead developer and future operator. It is joined by Rockies LNG, a consortium of Canadian natural gas producers, and the Nisga’a Nation, according to the report published via EnergyNow. The 750-kilometre Prince Rupert Gas Transmission pipeline will carry gas supplies from western Canada to the project site, according to a SEFE statement. The company said the electric liquefaction facilities would run on renewable hydroelectric power and that the Pacific coast location reduces reliance on shipping chokepoints and exposure to conflict zones.
The project has regulatory approvals, and the partners said they are targeting a final investment decision during 2026. The report describes it as a $10 billion project, without specifying the currency, so the figure’s basis or details are unclear. The investment decision remains a step beyond the binding contracts and project development stages, while the two additional deals still at an early stage show that part of the contracting process remains unresolved. The Canadian Press said the partners "aim to make a final investment decision this year." With the decision targeted for 2026, the next announced step is to finalize it, alongside progress on the preliminary deals toward final agreements.
In a separate economic report unrelated to the gas agreement, Germany’s Ifo Business Climate Index rose to 90.2 points in October 2026 from 89.9 points in September, as expectations improved, the institute said. But companies assessed their current situation slightly worse, meaning the index’s rise was driven by more optimistic expectations rather than a broad improvement in assessments of current activity. In manufacturing, both the current situation and expectations indexes returned to positive territory for the first time in more than 3 years, new orders rose and companies planned to increase production. By contrast, business climate in services weakened, with companies less satisfied with their current performance despite improved expectations, while information technology service providers stood out. The institute is due to release the next reading on 24 November 2026 at 10:30 Central European Time.