This blog has been edited due to Bill C-59
For the second time this year, a foreign leader has said their country would welcome new access to Canadian-made liquefied natural gas (LNG).
In a recent CTV interview with Vassy Kapelos, President Andrzej Duda said Poland would “of course” be interested in buying Canada’s LNG if it were made available [1].
“If Canada is ready to supply LNG to Poland, we have got our LNG terminal… right now,” said Duda, adding that his country plans to expand its existing infrastructure via reporting by CTV.
Poland currently imports LNG via the Swinoujscie terminal on its northern shore near the German border. The facility received 62 cargoes containing roughly 4.66 million tonnes of LNG in 2023, rising six per cent year-over-year [5]. Polish LNG imports will continue to rise, with the construction of its second facility and the country’s first floating storage regasification unit in 2028 [5].
Would Poland be interested in purchasing liquefied natural gas from Canada if it were available?
— CTV Question Period (@ctvqp) April 28, 2024
Polish President @AndrzejDuda says “Of course, yes.” #cdnpoli
More: https://t.co/jOz9vfiBBK pic.twitter.com/flf3FIVbow
The President joins a long list of foreign leaders since 2022 who have asked for or said they would buy Canadian LNG if the opportunity presented itself.
According to Duda, Poland already buys LNG from Qatar and the U.S. and would consider Canadian-made natural gas if it could be “bought at attractive prices.”
His comments mirror those of his Ambassador in a 2022 interview with the Canadian Gas Association.
“We would very much like to see the Canadian gas flow in European pipelines. This is very important for the diversification of our energy mix,” said Witold Dzielski, Poland’s Ambassador to Canada.
“This is very important for the security of Poland, of the region, of the whole Europe. And this is a topic which requires quick decisions as soon as possible.”
Just last month, Greek Prime Minister Kyriakos Mitsotakis was asked the same question by CTV’s Vassy Kapelos on whether his country would buy Canadian LNG [4]. His answer was similar: "Absolutely… of course.”
“Canada is a country with which we share so many values,” Kyriakos said.
In 2023, Japan and South Korea made it clear there is a demand for LNG in both countries and that they view Canada as a viable energy ally and reliable trade partner [2]. A year prior, leaders of Ukraine, Latvia and Germany all said they wanted Canadian-made LNG as they looked to find alternative energy suppliers, pointing to our shared democratic values.
Today, Canada has four LNG projects under development on British Columbia’s coastline. Fourteen million tonnes per annum (mtpa) of LNG export capacity is currently under construction (LNG Canada) in B.C., with another 30 mtpa+ under evaluation [3].
At one point, well over a dozen additional B.C. facilities were proposed on Canada’s East and West coasts, with a total export capacity of well over 200 mtpa. Apart from the four aforementioned B.C. projects, all are defunct or cancelled.
What countries win big when Canadian LNG export projects are not built? Qatar, Australia, Algeria, the United Arab Emirates, and other LNG suppliers who are more than happy to fill the void.
A recent economic analysis of Canada’s four existing proposed B.C. LNG projects found that, over their lifetime, they would [3]:
- Create $250 billion in new investment
- Support 50,000 direct and indirect jobs
- Generate $50 billion in government tax revenues
- Have an economic impact equal to half of Canada’s automotive industry
In other words, these four projects are expected to have an overwhelmingly positive and oversized impact on Canada’s economy. Just imagine what these figures above would look like if we hadn’t seen the cancellation of more than a dozen proposed LNG facilities over the past several years.
Canada is currently experiencing faltering labour productivity and investment levels, eroding Canadians' living standards. According to the National Bank of Canada, attracting new private capital – such as investments to develop our energy resources responsibly – is a solution to Canada’s current economic plight.
Other major natural gas producers see the business case for expanding their LNG exports. It’s time Canada did the same by streamlining our regulatory processes and providing investors with the confidence that initial costs are well spent and their projects have a good chance of progressing through to construction.
Poland, Greece, South Korea, Japan, Ukraine, Latvia, and Germany have all said they want Canadian-made LNG. Canada needs to step up and become the reliable LNG supplier these countries want us to be.
SOURCES:
1 - https://www.ctvnews.ca/politics/greece-would-absolutely-be-interested-in-purchasing-canadian-lng-greek-pm-1.6819966
2 - https://www.biv.com/news/resources-agriculture/korea-japan-want-canadian-lng-can-canada-deliver-8270599
3 - https://www.bcg.com/publications/2024/seizing-canadian-liquified-natural-gas-opportunity#:~:text=And%20here%20is%20the%20climate,four%20tons%20are%20saved%20elsewhere.
4 - https://www.ctvnews.ca/politics/greece-would-absolutely-be-interested-in-purchasing-canadian-lng-greek-pm-1.6819966
5 - https://lngprime.com/europe/orlen-polish-lng-imports-continue-to-rise/101308/