While Europe has just classified natural gas in the category of beneficial energies for the fight against the climate crisis, at least three liquefied gas export projects have the potential to see the light of day in eastern Canada. Projects to which GNL Quebec could be added, which is continuing its lobbying efforts in Ottawa. The new terminals should, however, be part of the “energy transition”, says the Trudeau government.
Members of the European Union confirmed on Wednesday that natural gas can now be considered a “green” energy needed to reduce coal dependence and greenhouse gas emissions. At a time when Europe is looking for ways to do without Russian gas, the countries have at the same time pleaded for the purchase of this resource from “safe countries”.
Canada, the world’s fifth-largest producer, also wants to become a supplier to European countries by betting on the construction of new liquefaction and export terminals for liquefied natural gas (LNG). “We recently set up a working group on LNG with the European Union to explore the possibilities offered to Canada in this area,” Natural Resources Canada said by email.
While today asserting its desire to contribute to Europe’s “energy security” in the context of the war in Ukraine, the Trudeau government had already signed an “energy partnership” with Germany in March 2021, which underlined that LNG was part of the development of “clean energy”. A month before the start of the Russian invasion, Canada and Germany organized a meeting devoted to the development of the gas industry and LNG projects.
One of the projects presented at this meeting, Goldboro LNG, is one of three export terminals that are currently “proposed” on the east coast, according to information sent to the To have to by Natural Resources Canada. The company Pieridae Energy, which has already been active in oil exploration in the Gaspé, is planning to set up a floating liquefaction plant in Nova Scotia. Carrying out this project could involve the use of the “Trans Québec & Maritimes” (TQM) network, which crosses southern Québec.
Another project, located in New Brunswick, could also use the TQM pipeline: Saint John LNG. This is the most advanced project of the three proposed, since the multinational Repsol already owns a terminal there allowing the import of liquefied natural gas. In response to questions from To have to, the company argues that it analyzes “opportunities” to meet market demand and “support the energy transition”. It does not rule out the idea of adding “liquefaction” capacity to its existing facilities.
The third project mentioned by Natural Resources Canada on the east coast could see the light of day in Newfoundland and Labrador. LNG Newfoundland plans to set up a floating liquefaction plant there, which would be connected to gas production zones located off the island. The gas would be transported through a 600 kilometer underwater gas pipeline.
“I believe that the demand for low-carbon energy in Europe represents a huge economic opportunity for Canada,” argues the To have to its CEO, Leo Power. He also recalls that the energy partnership signed with Germany in 2021 specifically recommends LNG projects, which the company hopes to take advantage of.
LNG Quebec
In addition to these projects, the promoters of GNL Québec are continuing their lobbying efforts with the federal government, despite the rejection of the first version of their project for a liquefaction plant and marine terminal located in Saguenay.
Its president, Tony Le Verger, has registered three communication reports since the beginning of May. Among them are three political advisers to the Canadian Minister of Natural Resources, Jonathan Wilkinson. Another report concerns a communication with Stéphane Dion, then Canadian Ambassador to Germany and to the European Union. The chairman of the board of directors of Énergie Saguenay, Jim Illich, also recently registered a “communication” with Mr. Dion, at that time still in post in Germany.
“We welcome the outstretched hand of the Canadian government to our European allies in order to provide responsible LNG with the lowest carbon footprint in the world”, argues GNL Québec in a written response where the company presents its project as being “ideally positioned to help our transatlantic allies find a solution to their geopolitical and climate issues”.
” Transition “
For new LNG projects to hope to go ahead, the Trudeau government says, however, that greenhouse gas emissions related to gas exploitation will have to comply with Canada’s “reduction objectives”. Exports should also enable the replacement of more polluting sources, such as coal, and be part of an “energy transition” towards the export of hydrogen.
Holder of the energy sector management chair at HEC Montréal, Pierre-Olivier Pineau believes that the situation in Europe, and in particular in Germany, favors the argument in favor of the export of LNG, which could, according to him , serve as a “transition energy”. “The situation has never been so favourable, but it will not be easy to build the infrastructure to transport natural gas in the east of the country”, because of the opposition in Quebec.
Scientific director of the Trottier Institute of Polytechnique Montreal, Normand Mousseau, for his part, doubts the relevance of new terminals. He points out that it would take several years and billions of dollars of investment to launch these projects, while the climate crisis imposes the achievement of “carbon neutrality” on a global scale by 2050 at the latest.
“Canada and Germany have been discussing a gas deal since January. Attempting to disguise their interest in response to the invasion of Ukraine is opportunistic,” adds Caroline Brouillette, of the Climate Action Network Canada, inviting the two countries to “accelerate the deployment of renewable energy sources such as wind and solar.