Taking action in support of our vital natural resource sector

Greece Prime Minister Kyriakos Mitsotakis visited Canada last month to discuss how our two countries could deepen our friendship. During his stay, he was asked if Greece would be interested in purchasing Canadian-made liquefied natural gas (LNG). “Absolutely,” he answered in an interview with CTV, explaining that our shared values make Canada a preferred energy supply source.

If you follow the news, you likely know this isn’t the first time a world leader has asked Canada for our responsibly produced energy.

Since the 2022 war in Ukraine, resource security has been put at the forefront for policymakers across Asia and the West, as these countries look to pivot towards more reliable and stable energy suppliers.

Greece joins a growing list of governments that have said they support and/or want Canadian-made LNG. Unfortunately, despite all their pleas, none have successfully convinced Canada to expedite the development of new LNG export capacity.

Below are a handful of examples of when the world has asked Canada to do more on the LNG front with little to no avail. Also see:

• What is the Prince Rupert Gas Transmission (PRGT) Pipeline Project?
• Coal Energy Sector Methane Emissions Show Opportunity for Canadian LNG
• With Fossil Fuel Advertisements in Canada, Truth Should Always Prevail

Latvia

Not long after the war in Ukraine began early in 2022, Latvia said it would welcome shipments of Canadian LNG to Europe to help reduce its reliance on Russian natural gas ^[2].

Kaspars Ozolins, Latvia’s ambassador to Canada, said there was a proposal to build a new LNG import terminal near the Baltic Sea port of Skulte, and that his country would encourage Canadian investors.

“We are trying to build a resilient energy system,” Mr. Ozolins said in an interview. “If Canada is going to invest in LNG, we would wholeheartedly support it.”

It’s not far off to say that if Canada had a readily available LNG supply on its east coast, European countries like Latvia would more than likely be interested in buying it.

Ukraine

Ukraine’s ambassador to Canada has expressed her country’s desire to source Canadian energy as an alternative to Russian fuels ^[3].

In mid-2022, Yulia Kovaliv called on Canadian oil and gas companies to help in the fight against Russia by entering and expanding into Europe’s energy market.

“Canada, we do believe, and the other countries . . . have to support us in providing the additional sources of energy since the European continent is rethinking, in general, their energy security,” said Kovaliv at an energy conference in Canada ^[11].

A few years have passed since the latest war in Ukraine began, and all east coast LNG projects in Canada are now defunct. What an absolute shame.

Germany

Germany’s Chancellor Olaf Scholz was yet another foreign leader who has asked for Canadian-made LNG. Scholz has stated that his country and Europe prefer Canadian LNG over other sources of supply found abroad ^[4].

“As Germany is moving away from Russian energy at warp speed, Canada is our partner of choice. For now, this means increasing our LNG imports. We hope that Canadian LNG will play a major role in this,” the Chancellor said while visiting Canada in August 2022.

Since leaving with no promises for Canadian LNG, Germany has signed multi-decade LNG deals worth tens of billions of dollars with Qatar, Oman, the United States and other suppliers since his visit to Canada.

Meanwhile, the EU member state has also managed to build LNG import terminals in record time, with the first three opening for shipments in January of last year.

Europe

Chancellor Scholz has repeatedly reiterated Europe also wants more Canadian-made LNG. In an interview with Vassy Kapelos on CBC News Network’s Power & Politics, Scholz made it clear that he speaks not only for Germany, but also for Europe ^[5].

"We would really like Canada to export more (liquefied natural gas, LNG) to Europe," Scholz said.

"We have not built terminals for importing liquid natural gas to Germany at our own shores in the north. This is what we are changing now … We will build ports, at many places, for importing natural gas, liquid natural gas, LNG, and this will really make a difference."

Scholz lived up to his promise of new LNG import facilities, built in just months, in record time.

Poland

Witold Dzielski, Poland’s new ambassador to Canada, sat down with the Canadian Gas Association in 2022 to discuss the energy needs of Europe and how Canada could help support global energy security.

Dzielski’s response was what you would expect from a country whose continent was in dire need of finding new, reliable energy supplies.

“We hope that Canada, being a superpower in the area of resources, will be able to send gas to Poland, and to the region, in order to support the diversification of energy sources,” said Dzielski, when asked if his government had engaged with Canada on finding new gas supplies due to the geopolitical situation in Europe ^[7].

“This is very important from our perspective and we are ready and will be happy to support Canada in that regard.”

Unfortunately, Canada has not yet committed to providing Poland and its European allies with our responsible and reliable LNG supply.

Japan

Despite Japan’s multiple LNG supply deals with Australia, Oman, the U.S., and others, the country is still full speed ahead in looking for alternative sources of supply for energy and food ^[6].

Japanese Prime Minister Kishida Fumio met with Canadian government officials including Prime Minister Justin Trudeau in early 2023, where he made it clear that his nation wants Canadian-made LNG.

“The world is having an energy crisis,” Kishido said. “We also want to have a closer relationship with Canada in the area of energy.”

“We’re facing an energy crisis and countries around the world are trying to strike a balance between ensuring a stable supply of energy, as well as the other side, the decarbonization. In that sense, I am confident that Canada will play a major role as a resource-rich country,” Mr. Kishida said to Trudeau, via reporting from The Globe and Mail.

With no commitments from Canada to boost LNG supplies to Japan, Kishido has been left to ask other countries abroad for new natural gas supplies.

South Korea

Early in 2023, Japanese and South Korean officials participated in a webinar where they shared their eagerness to receive the first imports of Canadian natural gas from the LNG Canada facility in Kitimat ^[8].

“The world is waiting for Canada,” said Yamanouchi Kanji, Japanese ambassador to Canada. “Canada can and should play a very important role to support the energy situation not only in Japan and South Korea, but the world.”

A few months later, Canadian officials went to South Korea to discuss energy security, among other things.

“I don’t think there was a time when Korea and Canada were so close as now, and I don’t think we’ve had any period where our two leaders have met so frequently,” Lim Woongsoon, South Korea’s ambassador to Canada via reporting by Chat News Today ^[9].

Woongsoon believes that LNG Canada – a project in which both his country and Japan have invested in – will get the go-ahead for phase 2 of development, which will increase its export capacity from 14 million tonnes per annum (mtpa) up to 26 mtpa.

“Our imports of LNG will be on the increase for the decades to come, because we need to phase down coal power plants … rather dramatically, and LNG will be the most feasible alternative,” he said.

With LNG Canada expected to send its first gas shipment to Asia sometime in 2025, South Korea and Japan don’t have to wait much longer. As two of the largest LNG importers in the world, they have since signed multiple supply deals with other countries abroad such as Australia, Qatar, Oman, and the U.S.

Greece

Prime Minister Kyriakos Mitsotakis visited Canada to discuss how Greece could deepen its friendship with Canada. During his stay, in an interview with CTV, Mitsotakis said that his country would “absolutely” be interested in purchasing Canadian LNG, if the resource were made available to his country ^[10].

“We are a big entry point for LNG, not just for the Greek market, but also for the Balkans, for Eastern Europe,” Mitsotakis said. “Theoretically, we could even supply Ukraine.”

“So, in principle, yes, we are very interested in obtaining LNG at competitive prices. As fast as we go in terms of our renewable penetration, we will still need a reliable source of electricity, and for us, for Greece, we don't have nuclear, we’re practically, or completely, moving away from coal, so that leaves natural gas for the foreseeable future as a significant source of energy, for the production of electricity.”

“Canada is a country with which we share so many values,” he continued.

Unfortunately for Mitsotakis, there are currently no export licenses granted for any LNG facilities on Canada’s east coast.

The World Needs More Canadian Energy

Three Studies Showing Canadian LNG Will Reduce Global Emissions #bcpoli https://t.co/tCYbsoY7Vc

— LNG Action (@LNGAction) April 12, 2024

According to the latest industry outlooks, global natural gas demand is poised to continue growing for decades. As Canada sits on the sidelines, countries like Qatar, Oman, and the United Arab Emirates are snatching up as many LNG supply deals as possible. If new supply doesn't come from Canada, it will be produced and exported by other less responsible regimes with little regard for human rights and the environment.

It’s not too late to step up and help our Asian and European trade partners with the reliable LNG supply they so desperately want and need, as they have asked us to do many times.

SOURCES:

_{1 - Government of Canada - State of trade 2020, Date Accessed: January 2023 (https://www.international.gc.ca/gac-amc/publications/economist-economiste/state-of-trade-commerce-international-2020.aspx?lang=eng)}

_{2 – The Globe and Mail – Latvia wants Canadian natural gas imports to reduce reliance on Russia, says ambassador, Date Accessed: January 2023 (https://www.theglobeandmail.com/politics/article-latvia-wants-canadian-natural-gas-imports-to-reduce-reliance-on-russia/)}

_{3 - Global News - New Ukraine ambassador calls European energy crisis an opportunity for Canada, Date Accessed: January 2023 (https://globalnews.ca/news/8906225/ukraine-ambassador-european-energy-crisis-canada-opportunity/)}

_{4 - Reuters - Germany touts possible ‘major role’ for Canadian LNG in shift away from Russia, Date Accessed: January 2023 (https://www.reuters.com/business/energy/canadian-lng-could-play-major-role-germanys-shift-russian-gas-scholz-2022-08-23/)}

_{5 - CBC - Scholz says Germany wants more natural gas from Canada, Date Accessed: January 2023 (https://www.cbc.ca/news/politics/scholz-vassy-kapelos-lng-russia-gas-1.6559814)}

_{6 - National Post - Being reliable supplier of energy important, Trudeau says as Japan looks to Canada for LNG, Date Accessed: January 2023 (https://nationalpost.com/news/politics/trudeau-energy-japan-canada-lng)}

_{7 - https://www.cga.ca/energy-magazine-post/an-interview-with-polands-new-ambassador-to-canada-witold-dzielski/}

_{8 - https://www.biv.com/news/resources-agriculture/korea-japan-want-canadian-lng-can-canada-deliver-8270599}

_{9 – https://chatnewstoday.ca/2023/05/16/trudeau-in-south-korea-to-talk-global-and-energy-security-youth-mobility-program/}

_{10 - https://www.ctvnews.ca/politics/greece-would-absolutely-be-interested-in-purchasing-canadian-lng-greek-pm-1.6819966}

_{11 - https://calgaryherald.com/business/varcoe-ukraines-ambassador-urges-canada-to-provide-additional-sources-of-energy}