German Chancellor Olaf Scholz talks with Prime Minister Justin Trudeau on the second day of the G7 summit at Schloss Elmau, Germany, on June 27.Pool/Getty Images
German Chancellor Olaf Scholz is coming to Ottawa next month to push for liquefied natural gas terminals on Canada’s East Coast and the release of a turbine, caught up in sanctions against Russia, critical to the flow of gas to Europe.
Mr. Scholz is expected to bring a trade delegation with him when he meets Prime Minister Justin Trudeau on Aug. 22 and 23 during his first official visit as Germany’s leader.
German Ambassador Sabine Sparwasser told The Globe and Mail Thursday that one of the Chancellor’s priorities is to resolve the case of a gas turbine stranded in Montreal because of Canadian sanctions against Moscow.
The turbine, built by Germany’s Siemens Energy Canada, is being repaired at the company’s Montreal facilities, but it is now on Ottawa’s Restricted Goods and Technologies list of products under Russian sanctions.
Citing the grounded turbine, Russian-state owned Gazprom has cut capacity along the Nord Stream 1 pipeline, which runs under the Baltic Sea to Germany, by as much as 60 per cent.
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Gazprom is one of many Russian companies hit by sanctions from Canada sparked by Moscow’s invasion of Ukraine. Soon after the Siemens turbine was put under sanctions, Gazprom cut gas flows from Nord Stream 1 at a critical time when Europe is trying to replenish its reserves for the cold winter months.
Germany’s vice-chancellor and Economy Minister, Robert Habeck, has appealed to Ottawa to release the turbine to allow Europe to refill its capacity. He also said the return of the turbine to Germany would remove the excuse that Russian President Vladimir Putin has used to slash gas flows to Europe.
“Minister Habeck has called on the Canadian government to allow for the turbine to be released and to be sent to Germany, “ Ms. Sparwasser said in an interview. “We don’t make this case just for Germany. We make it for a lot of European countries who are still trying to fill their gas supplies in expectation of getting out of Russian gas.”
The ambassador said she understands that the Trudeau government is under a lot of pressure from Ukraine and the Ukrainian-Canadian community who do not want the turbine sent back to Germany.
“But at the same time, Europe and Germany are very supportive of sanctions … but we also said we should not take sanctions that hurt us more than they hurt Russia,” she said.
The office of Natural Resources Minister Jonathan Wilkinson was non-committal when asked about Germany’s request to release the turbine.
“We will not stop imposing severe costs on the Putin regime while their unjustifiable invasion is ongoing, and we will continue to support our European friends and allies by working to help stabilize energy markets and to develop long-term and sustainable solutions on energy supplies,” press secretary Keean Nembhard said in a statement.
Siemens Energy said it supplied gas turbines for a compressor station for Nord Stream 1 in 2009. These were manufactured in Canada and need to be regularly sent back for maintenance.
During his August visit, Mr. Scholtz will encourage the building of two LNG terminals on Canada’s East Coast to supply Europe with natural gas as the continent reduces its dependency on Russia energy.
Calgary-based Pieridae Energy Ltd. is considering a full-scale Nova Scotia LNG project to export gas to Germany, and Madrid-based Repsol SA has a feasibility study for a new LNG export terminal in Saint John.
Canada currently has no operational LNG export terminals. Shell PLC has a terminal under construction that will ship natural gas in liquid form to Asia from Kitimat, B.C.
Mr. Wilkinson, the Natural Resources Minster, says Ottawa will not provide any public funding for the LNG terminals and they will have to go through regulatory approval to ensure they meet Canada’s climate goals.
Ms. Sparwasser said German investment and technology could play a role in getting the two East Coast projects off the ground.
Germany is just as interested in the long term of acquiring green hydrogen, particularly from Newfoundland and Quebec, she said.
“Canada has a huge export potential, in particular for green hydrogen,” she said.
The German Chancellor is also interested in discussing Canadian critical minerals with the Prime Minister. German industry is looking for secure supplies for the country’s auto, chemical and high-tech sector.
“We have some projects where big car makers might invest in the development of the mining of critical minerals,” Ms. Sparwasser added.
On Thursday, Thyssenkrupp Materials Trading GmbH and the German-Canadian clean-tech company Rock Tech Lithium Inc. signed a memorandum of understanding to supply raw materials for Europe’s first lithium converter and the purchase of battery-grade lithium hydroxide. This is one of the most important raw materials needed for the production of lithium-ion batteries, which are used in electric cars.
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Robert Fife