Germany is exploring a major expansion of liquefied natural gas imports from Canada as part of a broader strategy to reduce its heavy reliance on U.S. energy supplies, according to people familiar with the discussions cited by Reuters.
State-owned German energy company Uniper is currently holding talks with Canadian counterparts about increasing LNG purchases, three sources told Reuters. The discussions are taking place at both corporate and political levels and are tied to wider negotiations aimed at strengthening economic ties between the two countries.
The talks come as Germany seeks to secure long-term energy stability following the shock to Europe’s energy markets triggered when Russia, once its main gas supplier, halted deliveries. Berlin has since turned heavily to liquefied natural gas imports to fill the gap, with the United States emerging as the dominant supplier.
According to Reuters, the United States accounted for 96 percent of Germany’s LNG imports last year, underscoring Berlin’s growing concern about overdependence on a single partner. German officials and companies are now looking to diversify their supply sources, and Canada has emerged as a promising option due to its abundant natural gas reserves and stable regulatory environment.
Uniper declined to comment directly on the specific negotiations but confirmed that it is continuously seeking to diversify its supply portfolio. The company noted that Canada’s gas resources and future LNG export potential make it an attractive partner for long-term energy cooperation.
The discussions are also linked to a potential Canadian submarine procurement project that Germany is hoping to secure. According to sources cited by Reuters, the defense tender could involve broader offset agreements covering sectors such as rare earth minerals, battery production and energy cooperation.
However, infrastructure limitations on Canada’s east coast could complicate any rapid expansion of LNG shipments to Europe. Sources told Reuters that the region lacks significant regasification and export facilities, meaning new terminals may need to be built before large-scale shipments to Germany can begin.
Currently, most of Canada’s LNG export infrastructure is concentrated on the west coast, where projects are designed primarily to serve Asian markets. The country’s east coast has minimal LNG capacity, with the Saint John terminal operated by Repsol standing as one of the few major facilities.
Canada has also been seeking to diversify its own export destinations beyond the United States, its largest energy customer. Ottawa has been exploring potential LNG supply arrangements with countries including Japan, India and Malaysia as it looks to expand its global energy footprint.
Germany’s economy ministry said it expected any submarine contract awarded to a German supplier to generate economic value in Canada through offset agreements. Such arrangements could include industrial cooperation, technology partnerships and energy trade.
Canada’s Department of Natural Resources confirmed it was aware of Germany’s interest in LNG imports but emphasized that decisions to move export projects forward and finalize LNG sales would ultimately be made by private sector companies.
The talks come amid continued uncertainty in global energy markets. The ongoing conflict involving the United States, Israel and Iran has already disrupted some oil and gas production in the Middle East, adding further pressure on energy-importing economies such as Germany to secure diversified and reliable supply chains.
