Speaking alongside German Chancellor Olaf Scholz at a press conference on Monday – part of a three-day visit to Canada focused on energy security and clean technology that is set to culminate with the signing of a hydrogen export deal in Newfoundland on Tuesday – Trudeau appeared to question the “business case” for monitoring LNG developments. “We’re in a situation in the short term where we’re going to do everything we can to contribute to the global energy supply by increasing our capacity … And exploring ways to see if it makes sense to export LNG and if there’s a business case for it, to export LNG directly to Europe,” Trudeau said. “But in the medium and long term, Canada can and will position itself as a key supplier of energy to the world in a net-zero economy. And that means investing in hydrogen, it means more investment in critical minerals … it means investing in a range of solutions.” Pressed on whether Canada is able to export liquefied natural gas to Germany, Trudeau said Canada is aware of the need to address the energy supply crisis, but it will require significant investment to build the necessary infrastructure. “Conversion plants are usually located close to LNG sources. And as we look at the possibility of LNG facilities on the east coast, capable of being shipped directly to Germany, we are a long way from the natural gas fields in western Canada. It is feasible, we have infrastructure around it, but we’re looking a lot at how we can best help,” Trudeau said. Europe is facing an energy supply crisis and countries are being urged to reduce their use of natural gas in the face of continued uncertainty over energy supplies from Russia. Significant reductions in the flow of natural gas have prompted countries to boost supply and prompted countries such as Germany to look for alternative sources. Scholz said his country is taking steps to seek alternative energy resources and is speeding up the construction of new ports and pipelines, while also keeping in mind Germany’s climate goals. “That’s the basis on which we’re now talking to other countries that have the opportunities. Canada is one of them. We’re talking to those countries to help us tap into new sources of input,” he said. Ahead of Scholz’s visit, Trudeau said Canada is looking at ways to deliver more oil and gas to Europe “in the near term,” while also planning how the world could move away from oil and gas all together, more quickly. At the time, the prime minister said Canada was considering short-term liquefied natural gas proposals that could eventually be converted to export hydrogen, which is a clean fuel alternative. On Monday, Trudeau said Canadian companies were still discussing with Germany whether “the new framework” is now worth investing in pending proposed but not completed liquefied natural gas projects, including in Atlantic Canada and Quebec. whereas Germany also has plans to transition to cleaner energy sources. “From a government perspective, relaxing the processes – because of the difficulty Germany is facing – to make sure we can get through the regulatory hurdles more quickly is something we’re willing to do,” Trudeau said. “But there has to be a business case. It has to make sense for Germany.” Scholz’s visit marks an evolution in Canada’s energy relationship with Germany, according to Marla Orenstein, director of the natural resources center at the Calgary-based Canada West Foundation. He said while the western Canadian energy industry isn’t likely to get much of a boost from the visit itself, it “continues to reaffirm Canada as a powerhouse for energy and the other resources that are really critical to the energy transition.” Orenstein cautioned, however, that any deal made during or as a result of this visit likely won’t be something that can help Germany this winter or perhaps even next winter. “There has been little appetite on the part of our federal government to build LNG export terminals in Canada. At the same time, we also know that Germany is not ready to receive LNG, they don’t have ports built right now to receive it, so it will still be a few years away for them as well,” he said. With a file by Judy Trinh of CTV National News
