Momentum is building around Canada’s push to expand its liquefied natural gas (LNG) exports, with a significant long-term supply agreement set to be signed between Canada and Germany’s state-backed energy firm SEFE (Securing Energy for Europe), according to an industry source.

The deal will source LNG from the proposed Ksi Lisims export facility on the coast of British Columbia, a major infrastructure project designed to position Canada more firmly in global energy markets. The agreement is expected to be formally announced on Wednesday in Vancouver by Canada’s Natural Resources Minister Tim Hodgson.

While officials have not publicly confirmed the details, both Ksi Lisims developers, SEFE, and Canada’s natural resources ministry have declined to comment. The plans were first reported by Bloomberg, according to industry sources familiar with the negotiations.

The agreement comes at a critical stage for the Ksi Lisims project, as its backers work to lock in long-term buyers before taking a final investment decision expected later this year. Securing such contracts is widely seen as essential for financing and advancing large-scale LNG infrastructure.

The project has already attracted major international interest. Global energy giants Shell and TotalEnergies have each signed 20-year LNG purchase agreements tied to the facility, signaling growing confidence in its long-term viability.

Ksi Lisims is being developed by Houston-based Western LNG in partnership with a consortium of Canadian natural gas producers known as Rockies LNG, alongside the Nisga’a First Nation, which holds land ownership stakes in the project area. Once completed, the facility is expected to export up to 12 million tonnes of LNG per year, making it the second-largest LNG export terminal in Canada.

Minister of Energy and Natural Resources of Canada, Tim Hodgson, makes an announcement regarding liquefied natural gas with B.C. Minister of Energy and Climate Solutions Adrian Dix, left, and B.C. Premier David Eby, in Vancouver on Thursday, May 14, 2026.
For Germany, the agreement aligns with a broader strategy to strengthen and diversify its energy supply chains following disruptions in global gas markets. SEFE—short for “Securing Energy for Europe”—was nationalized by Germany in 2022 for €6.3 billion after its former parent company Gazprom withdrew from the business during Europe’s energy crisis.

Alongside fellow state-linked importer Uniper, SEFE has been tasked with rebuilding and diversifying Germany’s energy portfolio, particularly as geopolitical tensions and recent conflicts in the Middle East continue to heighten concerns about supply stability.

SEFE has already been building an extensive global LNG procurement network, including agreements with U.S.-based Venture Global, Argentina’s Southern Energy S.A., and Turkey’s state energy company BOTAS, among others.

European interest in Canadian LNG has also been rising more broadly. Recent reporting indicated that buyers, including Uniper, are evaluating long-term imports from Canada’s Pacific coast, with shipments potentially routed through the Panama Canal as part of a wider effort to reduce reliance on traditional supply corridors and strengthen long-term energy resilience.