Accompanied by tugs, the LNG tanker Hellas Diana transports a cargo of LNG to the Deutsche Ostsee energy terminal, in Mukran, Germany, on Aug. 28.Stefan Sauer/The Associated Press
Greg Quinn, OBE, heads Aodhan Consultancy. He is a retired British diplomat who has served as consul-general in Toronto and Calgary.
There are seven liquefied natural gas export projects and one infrastructure project in various stages of development in Canada. These represent a potential production capacity of more than 50 million tonnes a year of LNG. All the projects are in British Columbia, and will feed Asian markets, with LNG Canada in Kitimat the country’s first large-scale LNG export facility. It aims to make its first deliveries in 2025.
But what about European markets? The fact that Canada, the world’s fifth-largest gas producer, does not have export facilities on the East Coast is a problem. This is especially so in the context of Monday’s news that Britain has become the first G7 country to end electricity production with coal. That it is the first is a matter of pride, but Britain certainly won’t be the last to do this.
It is not a popular opinion in these environmentally conscious days, but the reality is we are going to need natural gas for many years to come. This is a cold, hard truth because the transition to wind, solar and hydrogen (amongst other alternative technologies) is going to take time. And during that period, gas, which produces lower emissions than fuels such as coal, can be a transitional substitute as countries move off the carbon combustible.
This is where Canadian gas comes in: In Britain and continental Europe, as we transition to alternative fuels under ambitious net-zero targets, we face restrictions in traditional gas supply. We can no longer rely on Russia. The U.K. Continental Shelf in the North Sea, another traditional source for natural gas in Europe, is in terminal decline. Meanwhile, the Middle East, a gas powerhouse, is rightfully seeking to leverage their newfound influence as an increasingly important supplier. Simply put, Europe needs more Canada.
Now don’t get me wrong, I’m very happy for B.C. and for everyone in the Far East who will benefit from these gas projects. However, being from Britain (and, dare I say it, European), I’m feeling a bit left out and less than happy about the fact that if Europeans want to buy Canadian gas, it either has to be shipped from the West Coast or bought indirectly from the United States.
God bless Norway’s officials and executives, who are a lifesaver for Britain on gas and who seem to understand the concept of a transition from fossil fuels that can provide a reliable supply in the interim while being fair to workers as it winds down. But why can’t (or won’t) Canada export to Europe?
Newfoundland produces about 400 million cubic feet of gas a day, and has sizable reserves. Alberta and the other Western provinces have lots they want to sell us, but are unable to get their gas across the country to the Atlantic. Why can’t Canada build the pipelines and export facilities to do so? It’s already been demonstrated that it could for the West Coast.
Doesn’t Canada want to help us Europeans? Are we less reliable than our friends in the Far East? Or is it simply the fact that there is insufficient political will to build oil and gas pipelines across Ontario and Quebec? It certainly looks that way.
In 2022, German Chancellor Olaf Scholz came to Canada hat in hand for gas, only for Prime Minister Justin Trudeau to say that “there has never been a strong business case” for exporting to Europe. Mr. Scholz’s request was followed by similar ones from Poland and Greece, which were met with similar responses. If there truly is no business case, how come there are so many hungry buyers rapping at the door even if they’ve already seen it shut?
We all know that climate change is real and that we need to transition. However, deciding to get rid of fossil-fuel use virtually overnight – which seems to be Ottawa’s attitude as it says no to facilities beyond those on the West Coast that were already years in the making – is hardly a helpful approach and risks setting back our economic well-being (as some seem to think we should).
Here is where Canada can help. Set up the infrastructure needed to send us your oil and gas. Don’t sell it all to the Far East. We promise we won’t use it as a permanent source of energy. Instead we will use it as a stopgap to cover until we have transitioned and found a better way to ensure we can survive.
All that we ask is for you to help a friend in need. Isn’t that a good thing when you are able to?