Germany has agreed to supply LNG from Canada under a long-term contract

Germany has agreed with Canada to supply up to 1 million tons of liquefied natural gas (LNG) per year from the new Ksi Lisims LNG project, which is planned to be implemented on the west coast of the country. This was reported on May 27 by the Bloomberg news agency.

"Canada has reached an agreement on the supply of liquefied natural gas to Germany from a planned plant on the west coast," the publication says.

According to the agency, the German side has agreed to purchase the specified amount of fuel under a long-term agreement. Supplies will be provided by a future terminal in British Columbia, with a capacity of up to 12 million tons of LNG per year.

The project is estimated at about 10 billion Canadian dollars (about $7.2 billion) and is being implemented with the participation of Western LNG, Rockies LNG Partners, as well as the Nisgaa indigenous people. A final investment decision on the construction has not yet been made, but the project has already received regulatory approval.

The official announcement of the deal is expected to be made by Canadian Energy Minister Tim Hodgson. The gas buyer will be SEFE, a former Gazprom division that was nationalized by the German authorities.

Berlin and Ottawa note that the agreement reflects the desire of European countries to diversify energy supplies amid changes in the global energy market.

Fuel supply: global gas prices may rise by 50% in summer%

Experts cite an abnormally hot summer and an increase in demand for this fuel in Asia and Europe as reasons.

German political scientist Eike Hamer said in an interview with Izvestia on May 18 that Germany and other European countries are facing a severe economic downturn due to a critical shortage of energy resources. The decline of the economy will be accompanied by mass layoffs, a wave of bankruptcies and a massive disruption in supply chains.