Canada and Germany make liquefied natural gas deal as Carney looks to diversify from US - AP News
1 min read
The story
Canada has struck a landmark LNG export deal with Germany's SEFE, anchored by the Ksi Lisims LNG project in British Columbia, as PM Carney pursues trade diversification away from the US. The deal validates Canadian LNG infrastructure build-out and should act as a multi-year demand anchor for midstream operators with BC exposure — but today's price action on both TRP and ENB is notably negative, suggesting the market is skeptical of near-term earnings impact or weighed down by macro cross-currents.
The case — both sides
The house read
Buy the dip in TRP: CIBC just raised its PT to C$103 and the Ksi Lisims LNG deal validates TC Energy's Coastal GasLink / BC gas corridor franchise — today's -1.9% selloff is a gift.
Wrong ifKsi Lisims LNG is a greenfield project with a history of delays and financing complexity — if the deal falls apart or FID timeline slips, the positive catalyst evaporates. Additionally, broader CAD/USD trade-war sentiment could keep Canadian energy names under pressure regardless of deal news.
Published read · research, not advice