Canada is considering whether it can make a “business case” to export liquefied natural gas (LNG) to Europe, Prime Minister Justin Trudeau said.
Trudeau said on Monday alongside German Chancellor Olaf Scholz at a press conference in Montreal that such exports pose logistical and financial challenges, but that his government is facing challenges to the world amid the war in Ukraine. said it would do what it could to increase its energy supply.
Economic talks about potential LNG exports are underway between Canadian and German companies, Trudeau told reporters.
“We will do what we can to contribute to the world’s energy supply by increasing our production capacity in the short term, and look for ways to see if it makes sense…and business If there is a case, we will export the LNG directly to Europe,” Trudeau said.
But he added that one of the challenges is the investment required to build an LNG export infrastructure, adding that Canada’s current “maximum capacity” is more generally to increase the world’s energy supply. emphasized.
“Usually, LNG conversion plants are located close to the source of the LNG. If we consider the possibility of shipping LNG plants on the east coast to Germany, we find that they are far away from the gas fields in western Canada.” says Trudeau. He said.
“It is doable. We have the infrastructure around it, but we are very much looking at how we can best help. To continue to serve the market and to replace Germany and Europe in gas and energy, you can find out from other sources.”
Russian President Vladimir Putin has repeatedly warned that Russia’s natural gas supplies to Europe could be cut dramatically amid international sanctions over the war in Ukraine.
“Russia is no longer a reliable business partner,” Scholz said on Monday. “It has reduced gas supplies all over Europe, always citing technical reasons that never existed. That’s why it’s important not to fall into Putin’s trap.”
Russia’s state-owned gas company Gazprom said it had technical problems with turbines sent to Canada for overhaul by partner Siemens Energy and could not be returned due to sanctions, citing Nord Stream 1 pipelines. cut its gas supply to Germany via 60% in June. imposed on the war.
Gazprom announced last week that the pipeline would be closed for three days of maintenance at the end of this month, putting economic pressure on Germany and other European countries that rely on fuel for their electricity industry, power generation and home heating. I am raising it.
Canada, home of Alberta’s tar sands, is the world’s fifth-largest oil producer, according to the government, and earlier this year it decided to cut oil and gas production to help European allies shy away from Russia. announced plans to expand
The European Union relies heavily on Russia for its energy needs, and Moscow supplied about 40% of the block’s natural gas last year.
Canada’s Minister of Natural Resources, Jonathan Wilkinson, said in March that “European friends and allies need Canada and others to step up.” “They say they need our help getting out of Russian oil and gas in the short term while accelerating the energy transition across the continent. Canada is uniquely positioned to help both. .”
Canada’s pro-oil lobbying groups and conservative politicians urged the government to increase energy production, but environmentalists condemned the push, saying that the increase, even if short-lived, would not help Canada’s climate change. He said it would prevent it from fulfilling its promise to tackle the crisis.
Experts also point out that Canada will not be able to expand its LNG exports in time to meet Europe’s needs.
“Climate commitments and energy security concerns are driving Europe to accelerate plans to reduce its use of gas by enhancing energy efficiency and the use of renewable energy sources. There may be demand, but a market like Norway is more logical to meet the immediate need,” said the International Institute for Sustainable Development, an international think tank, recently.
“This leads to a fundamental mismatch with Canada’s supply opportunities. Canada will not be able to increase supply by 2025, but Europe’s energy needs will be largely resolved by then.”
Canada is considering an LNG expansion deal with Germany to meet short-term energy needs.
The deal will not only make it impossible for Canada to keep its climate commitments, it will also not help the EU pull out of Russian gas in time, new finds say. @IISD_ energy simply. pic.twitter.com/bdFsRzd34S
— Tzeporah Berman (@Tzeporah) August 16, 2022
Germany fears further cuts in natural gas supplies from Russia this winter in retaliation for sanctions by Western countries after invading Ukraine, Economy Minister Robert Habeck said on Monday, German broadcaster ARD. told to
In an interview with Reuters last week, Canada’s Minister of Natural Resources Wilkinson said that as the world moves away from fossil fuels, clean hydrogen will be delivered to Germany and the rest of Europe instead of trying to build LNG terminals. We emphasized the possibilities of the countries we serve.
On Tuesday, Canada and Germany will sign an agreement in Newfoundland to develop clean hydrogen for export to Germany as early as 2025, Wilkinson said.
German Chancellor Scholz said at a news conference with Chancellor Trudeau on Monday that “Canada is really playing a central role in the development of green hydrogen.” “That is why we are very pleased to take this opportunity to expand our cooperation in this area.”
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