What we know about Canada’s landmark LNG deal with Germany
We’re going to wrap up this live page.
In summary, Canada has brokered a deal with Germany to sell it one million tonnes of liquefied natural gas a year from Ksi Lisims, a largely Indigenous-owned LNG terminal in northern B.C.
This is significant because it’s the first deal between the two countries for LNG, a fuel source Germany needs after walking away from its main supplier, Russia, following the invasion of Ukraine in 2022.
Germany, a major industrial economy, is scouring the world for new supply because Russia is a non-starter and so much Middle East gas is offline amid the U.S.-Israeli war against Iran — a conflict experts say will have potentially years-long ramifications even if it ends soon.
Prime Minister Mark Carney framed the deal as vindication of his policy to diversify trade away from the U.S.
Germany gains a steady fuel source from a reliable partner and Canada reduces its dependence on the U.S. It opens up new trade routes and deepens partnerships with Europe, something Carney has made a top priority.
Germany’s multi-decade commitment to buy all that gas in bulk also means Ksi Lisims, which has long been in planning, is more likely to be built.
The multi-billion dollar project was heralded today by both the federal Liberals and the provincial NDP as a major economic boon, with thousands of jobs expected and financial benefits flowing to Indigenous communities.
The announcement is not without controversy, though.
Environmentalists say Ottawa’s decision to effectively greenlight another LNG terminal jeopardizes Canada’s climate goals, which were already on shaky ground because the government has moved to tweak or curtail some past environmental policies.
While the Nisga’a Nation backs the project and holds a significant ownership stake, some local Indigenous groups worry about the emissions and ecological destruction associated with a project like this.
In truth, it’s far less controversial than another one that’s being planned: an oil pipeline from Alberta to the B.C. coast. That project faces an uphill battle.
