Energy Minister Tim Hodgson announced the landmark partnership in Vancouver, calling the multi-year export agreement an exciting milestone.
The deal requires Canada to ship one million tonnes of LNG annually from British Columbia to Germany for two decades.
The historic agreement helps Canada diversify its trade network and reduce its traditional reliance on United States energy markets.
Supporters expect the agreement to fill critical gaps in the global energy supply starting in the early 2030s.
The deal boosts the proposed Ksi Lisims LNG project, which officials hope will secure final investment decisions within months.
Prime Minister Mark Carney designated the coastal facility as a priority, allowing a fast-track review process to accelerate construction.
However, the energy project faces strong opposition from several environmental and indigenous groups citing legal and ecological risks.
Internal political friction also independent of the deal led former environment minister Steven Guilbeault to resign from caucus.
Concurrently, the government reduced American defense spending by purchasing new early warning aircraft technology from a Swedish manufacturer.
