Between opponents and supporters of Canadian natural gas exports to Europe, the Trudeau government has made its choice: liquefaction and transportation projects can be carried out. But before getting the green light from the federal government, the already active promoters will have to plan a “transition” – towards the production of hydrogen, for example. Canada and Germany are also due to sign an agreement on the development of this sector in the coming days.
When German Chancellor Olaf Scholz visits Canada next week, the issue of “energy security” will be on the agenda of his meetings with Justin Trudeau. The two leaders must at the same time place their discussions in a perspective of “global transition to clean energy”, specifies Natural Resources Canada in an emailed response.
This does not mean that the federal government is closing the door to plans to export liquefied natural gas (LNG) to Europe and Germany, as demanded by environmental groups and certain experts. Potential liquefaction plants and marine LNG export terminals on the east coast of the country will have to “comply with federal and provincial regulatory standards while facing competition in the global market,” recalls the federal ministry.
“Proponents of any possible new liquefied natural gas project should incorporate energy transition considerations into project design, such as plans to transition to hydrogen production and export,” also says Natural Resources Canada.
Canada and Germany are due to sign next week, in Newfoundland and Labrador, an agreement on the development of this sector. energy. Concretely, it is a question of building an energy plant there where wind energy will be used to produce hydrogen and ammonia intended for export. It would therefore be “green” hydrogen, since its production will not require fossil fuels, unlike “blue” hydrogen, which involves the use of natural gas.
Germany was already considering hydrogen as an energy solution in its climate plan before Russia invaded Ukraine last February. But this war has accelerated the desire for transition of Europe’s leading economic power, which wants to end the use of coal by 2030. Proponents of the hydrogen agreement therefore claim that it comes at a pivotal time to launch the development of Canada’s green hydrogen industry.
LNG projects
There are also four potential LNG production projects in Eastern Canada, spread across four provinces. According to the responses obtained from their promoters, the context would be favorable to the development of new terminals for exporting Canadian natural gas to Europe.
Despite the rejection of GNL Québec by federal and provincial authorities, the promoters believe that the Énergie Saguenay project continues to “arouse deep interest and to be ideally positioned to help our transatlantic allies find a solution to their geopolitical and climatic issues, while by presenting the best that Canada and Quebec have to offer”.
According to what the company says by email, Germany could benefit from this LNG in order to “diversify” its energy supplies.
Proof of GNL Québec’s desire to continue its promotional efforts, the company has registered a total of four “communications” in the federal register of lobbyists over the past month. These communications took place during the months of June and July. The most recent communication dates back to July 8. The president of GNL Québec, Tony Le Verger, then spoke with an adviser from the Canadian Embassy in Germany. Earlier this year, he also wrote a communication with Stéphane Dion, who was then Canada’s ambassador to Germany.
Three other LNG export projects are under development in the east of the country. In Nova Scotia, the company Pieridae Energy plans to set up a floating liquefaction plant. The realization of this project could involve the usestation of the “Trans Québec & Maritimes” (TQM), which crosses southern Quebec. Pieridae Energy did not respond to questions from the To have to.
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 a written response, the company assures that there is “strong interest in this project” of liquefaction, but without specifying further whether discussions have been started with possible European or German partners.
The latest project proposed 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.
President and CEO of LNG Newfoundland, Leo Power believes that the visit of Chancellor Olaf Scholz is “an excellent opportunity” to present the LNG projects under development in the east of the country. “The single most effective step Canada can take to tackle the energy crisis in Germany and Europe is to assist in the massive export of low-carbon LNG,” he argues in a written response to the To have to. The company also says it is ready to consider any partnership project with Germany in order to ship LNG there from 2030.
In a presentation Wednesday morning, experts and representatives of environmental groups urged the federal government to say no to the construction of new LNG production and export infrastructure. Such projects are incompatible with climate objectives.canada ticks and the international community, they argued.
“Contrary to what the fossil industry claims, Canada will not save Germany with gas. Rather than investing time, resources and credibility in promoting an energy source for which we have no time left, the Canadian government should think about how it can contribute to helping Germany accelerate its transition energy”, also argues Caroline Brouillette, director of national policies for the Canada Climate Action Network, which brings together several organizations across the country.