A proposed liquefied natural gas development on Canada's west coast has agreed to supply Australian energy company Santos, a deal that helps underpin a project that would further pivot Canadian gas exports to markets beyond the U.S.

KSI Lisims LNG signed a Heads of Agreement with Santos for the sale of 1 million metric tons a year over 20 years.

The deal marks a third international offtake agreement this year for the project, which in July said it would supply 2 million tons annually to Germany's Uniper and in May entered a Heads of Agreement to supply 1 million tons a year to Berlin-based Securing Energy for Europe beginning in the early 2030s.

KSI Lisims LNG--a venture of Western Canadian natural gas producers, Houston-based Western LNG and the local Nisga'a Nation--aims to have a capacity of 12 million tons of liquefied natural gas each year that would target markets in the Pacific Basin where demand continues to grow. The roughly 30 billion Canadian dollars (US$21.6 billion) floating export facility would be Canada's largest LNG operation after LNG Canada in British Columbia, which began exporting last year.

"Amidst energy market disruptions, international demand for reliable energy only continues to grow, and projects like this, developed in partnership with indigenous peoples and providing best-in-class low-carbon energy, demonstrate how Canada can be a leading energy superpower for years to come" federal Energy Minister Tim Hodgson said.

The project in November was referred to Ottawa's major projects office, which was established to help speed up and simplify government approval of developments that promise to boost the economy and create jobs.

Canada, which until last year relied almost entirely on the U.S. market for shipments of its natural gas, is seeking to double non-U.S. exports over the next decade. It has a target of shipping about 55% of gas exports to countries other than the U.S. by the early- to mid-2030s.

Davis Thames, founder and chief executive of Western LNG, said the agreement with Santos signals confidence in the project as it moves into the final stages of commercialization and toward a final investment decision.

Ksi Lisims LNG has entered into sales and purchase agreements with Uniper, Shell and TotalEnergies for 6 million tons of LNG a year and Thames said the venture expects to complete commercialization on the planned 12 million tons capacity this year.

The deal with Santos remains subject to the completion of a sales and purchase agreement.