Ksi Lisims Signs 20-Year Heads of Agreement With Santos
Ksi Lisims LNG announced the agreement with Santos on September 14, 2026.
The deal is structured as a Heads of Agreement for the sale and purchase of 1 million tonnes of LNG per year for 20 years.
Santos is one of Australia’s leading domestic gas suppliers and a major LNG supplier in the Asia-Pacific region.
For Ksi Lisims, the agreement adds another international buyer as the project moves toward the final stages of commercialization, according to its leadership.
This Is Ksi Lisims LNG’s Third International Agreement
The Santos agreement follows two earlier international deals signed by Ksi Lisims LNG this year.
The project previously reached agreements with Germany-based companies Uniper and SEFE.
That gives the project a growing network of prospective international customers across Europe and the Asia-Pacific region.
The agreements add prospective buyers as the project advances toward commercialization and a final investment decision.
Canada Wants to Reduce Its Dependence on the U.S.
For years, the United States has been the dominant destination for Canadian natural gas exports.
Natural Resources Canada says less than 0.01 percent of Canada’s natural gas exports went to non-U.S. markets in 2024.
The federal government is now targeting a major change in that pattern.
According to Natural Resources Canada, the share of Canadian natural gas exports going to non-U.S. markets could reach an estimated 55 percent by the early to mid-2030s.
Projects such as Ksi Lisims LNG are part of the government’s effort to create new export routes.
Why International LNG Markets Matter
Expanding LNG exports gives Canadian producers access to customers outside North America.
That can help broaden Canada’s trading network and connect Canadian natural gas with markets where the government says demand for reliable energy supplies remains strong.
The federal government also sees international energy exports as part of a wider strategy to strengthen economic and energy sovereignty.
For Canada, the objective is not simply to increase LNG exports. It is also to build more diverse trading relationships with international customers.
Ksi Lisims Would Be Canada’s Second-Largest LNG Facility
Ksi Lisims LNG is a proposed floating natural-gas-liquefaction production, storage and offloading facility with a marine terminal on the north coast of British Columbia.
If developed as planned, the project would have export capacity of up to 12 million tonnes of LNG per year.
Natural Resources Canada says it would be Canada’s second-largest LNG facility.
The project includes the Nisga’a Nation as a key partner and was referred to the federal Major Projects Office in November 2025.
The Project Also Has a Low-Emission Focus
Ksi Lisims LNG is being positioned as a lower-emission LNG project.
Natural Resources Canada says the project would have emissions 94 percent below the global average.
The government also estimates that supplying LNG to markets that currently rely on coal or more emissions-intensive LNG could potentially reduce global emissions by 9 million to 14 million tonnes of carbon dioxide annually.
Those estimates are part of the government’s assessment of the project’s potential contribution to global energy markets.
Santos Deal Comes During Canada’s Investment Push
The timing of the agreement is also significant.
The Santos deal was announced during the same week as Canada’s first-ever international Investment Summit in Toronto, where the federal government is seeking to attract international capital into major Canadian projects.
Natural Resources Canada described the LNG agreement as demonstrating alignment between government, Indigenous Peoples, industry and international partners.
The broader investment strategy is focused on connecting Canadian resources with global markets while supporting economic development at home.
What Happens Next for Ksi Lisims LNG?
The Santos Heads of Agreement is an important step in the project’s commercialization process, but it does not mean the facility is already operating.
Ksi Lisims LNG remains a proposed project.
The project’s leadership has described the Santos agreement as a signal of confidence as Ksi Lisims moves toward a final investment decision.
The project’s future will depend on continued commercialization, financing and development progress.
Canada’s LNG Strategy Is Expanding
The Ksi Lisims agreement highlights a broader shift in Canada’s approach to energy exports.
Rather than relying heavily on a single major export market, the federal government is seeking stronger connections with customers in Europe, Asia and other international markets.
For Canadian energy companies and communities, greater export capacity could create new commercial opportunities.
For international buyers, Canadian LNG could provide another source of natural gas supply as countries consider energy security and supply diversification.
Bottom Line
Ksi Lisims LNG’s agreement with Santos adds another prospective international LNG buyer and marks the project’s third international offtake agreement this year.
With agreements already signed with Uniper and SEFE, the project is building a broader international customer base.
The development also fits into Canada’s larger effort to diversify energy exports and reduce its dependence on the U.S. market.