Clock ticking on potential of Canadian LNG exports to Europe, minister tells committee

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OTTAWA – Canada’s pure sources Minister Jonathan Wilkinson mentioned the window to get pure fuel to European markets is simply three years, with international locations trying to pivot to hydrogen quickly after.

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“They need to see the product in Europe inside three years or they’re actually not thinking about half as a result of they’re aggressively transferring in the direction of hydrogen, which is one thing that Canada could be very thinking about supplying to Germany,” Wilkinson mentioned on the Home of Commons Pure Sources Committee on Thursday.

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German Chancellor Olaf Scholz was in Canada earlier this yr searching for alternatives to signal offers to export liquefied pure fuel. Germany lengthy relied on Russian pure fuel, however is quickly attempting to chop ties with Moscow as a result of invasion of Ukraine. Germany has since signed export offers for LNG in Australia and Qatar.

Throughout Scholz’s go to the 2 governments did announce a working group to search for LNG alternatives, however no agency offers had been made.

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Conservative MP Shannon Stubbs requested how there was so little progress advancing export terminals and why there didn’t appear to be funding throughout the price range for the working group.

“The U.S. has managed to assemble seven LNG services within the time that Canada has misplaced 25 alternatives,” she mentioned.

Wilkinson insisted the federal government was searching for good tasks, however wanted ones that will be prepared shortly.

“We’ve got been working with the Germans specifically trying on the alternative to have the ability to truly discover one thing that matches inside their window.”

Canada has nearly no capability to export pure fuel right now, however there’s a main undertaking beneath building on B.C.’s coast. There are a number of tasks proposed for East Coast ports, however none are exporting.

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Canada agreed to extend oil and fuel manufacturing by about 300,000 barrels per day in 2022 to assist Europe cope with the lack of Russian oil and fuel, which Wilkinson mentioned they’re on the way in which to reaching.

“I’ve spent an unlimited period of time with our European colleagues and positively we’ve got endeavoured to do the whole lot we are able to to assist them, together with increasing oil and fuel manufacturing,” he mentioned.

He mentioned they’re trying towards the long term points and imagine Canadian-made hydrogen could possibly be a major contributor.

“There’s monumental work happening on the East Coast related to constructing out each onshore and offshore for the aim of really producing hydrogen and transport it to Germany. There’s additionally vital work happening in Western Canada with respect to the manufacturing of hydrogen from pure fuel.”

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