Europe looks to Canadian LNG shipments through Panama Canal to cut energy risk

OTTAWA: European energy buyers, including Germany’s Uniper, are in talks to secure liquefied natural gas (LNG) from Canada’s Pacific coast and transport it via the Panama Canal as part of a wider effort to reduce dependence on traditional supply routes and diversify energy sources.

According to sources familiar with the discussions, European companies are exploring potential long-term contracts with Canada’s proposed Ksi Lisims LNG export terminal.

The project is still awaiting a final investment decision this year, but has already attracted strong interest from global buyers seeking more stable and politically secure supply options.

The move comes as European nations continue to reassess their energy strategies amid geopolitical tensions and supply risks linked to global conflicts.

Although Canada’s west coast LNG exports are traditionally geared toward Asian markets due to shorter shipping distances, European buyers are now considering the added cost and longer transit time of shipping through the Panama Canal to strengthen energy security and reduce reliance on limited suppliers.