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Ulviyya Poladova

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Germany and Canada are set to sign a large-scale agreement on the supply of liquefied natural gas (LNG) as part of broader efforts to strengthen Europe’s energy security, AzerNEWS reports.

Germany plans to import up to 1 million tons of LNG annually from Canada. Sources told Bloomberg that Canada’s Energy Minister Tim Hodgson is expected to officially announce the deal.

The deal is aimed at helping Europe diversify its energy sources and reinforce energy security amid the continent’s efforts to completely phase out Russian energy resources and address supply disruptions from the Middle East.

Under the agreement, Germany’s state-owned energy company SEFE will purchase LNG from a floating export terminal located on the northern coast of British Columbia, Canada.

The project is backed by Western LNG, with Blackstone Energy Transition Partners listed among its major investors.

Although the project has already received regulatory approval, a final investment decision on construction has not yet been made. The planned production capacity of the terminal is estimated at 12 million tons of LNG per year.

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