Per the owner's manual for your water heater:
"This water heater must be connected to a lined masonry chimney or venting system approved by local codes or ordinances. The vent connector used to attach the draft diverter outlet to the chimney or approved vent must be of the same diameter as the draft diverter outlet or larger. For proper venting in
certain installations, a larger vent connector may be needed."
Please check with your local building code enforcement office and/or gas utility company for more information to ensure proper venting. These Type B gas liners should be suitable for use, but you would need to verify and confirm this with your local authority-having jurisdiction.