Germany's Uniper signs 20-year LNG deal with Canada

The German state-controlled energy company Uniper finalised on Wednesday a 20-year deal to purchase liquefied?natural?gas from Canada, as the two countries deepen their partnership.

Uniper secured 2 million tons per year of gas from the Canadian LNG project Ksi Lisims, located on British Columbia's Pacific coast.

This was after SEFE, another German state-owned gas importer, had secured some Ksi Lisims' capacity in May. Uniper had already agreed to long-term contracts with Canada's Tourmaline over a year earlier.

These deals are a reflection of European 'ambitions' to boost alternative gas routes, after the?Russian Gazprom stops delivering in 2022 and creates reliance on U.S. supply.

Ksi Lisims has the support of Western LNG, Rockies LNG and the Nisga'a First Nation. The gas liquefaction process will be powered by hydroelectric dams.

In March, it was reported that Uniper had discussed more gas purchases in Canada to diversify from U.S. LNG supplies which accounted for 96% of Germany’s LNG imports.

Canada wants to reduce its dependence on U.S. customers with export agreements involving Japan, India and Malaysia.

This month, Canada chose Germany's TKMS to supply 12 subs - viewed as a?potential trigger?for follow-up contracts on rare earths or batteries. (Reporting and writing by Holger Hansen; editing by Thomas Seythal).

(source: Reuters)