Can Canadian LNG Find a Home in Europe?

---

Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Eager to expand Canada's trade outside of North America, the Canadian foreign minister said energy trade could be a component of a European relationship. Europe, however, is largely dependent on the U.S.

---

Lots of Interest, Canadian Foreign Minister Says

Fresh off a European tour that saw the prospects of the first-ever associate membership, representatives from the Canadian government said it was likely that bonds could be strengthened further over energy trade, particularly liquefied natural gas (LNG).

"Every country I speak with asks about potential partnerships in energy," Canadian Foreign Minister Anita Anand told Reuters in an interview published Monday.

European energy security is at risk because of the conflict in the Middle East, which is limiting the availability of both crude oil and natural gas amid disruptions to maritime shipping. The United Kingdom Maritime Trade Operations Center reported Monday that a tanker moving inbound into the Strait of Hormuz was hit by an unknown projectile, while another tanker carrying liquefied petroleum gas (LPG) was hit by debris.

This week, QatarEnergy said it was limited by what it could deliver in terms of liquefied natural gas (LNG) because of damage sustained to its infrastructure early in the conflict, leaving importers increasingly reliant on a few key suppliers. Italian energy company Edison, a major importer, has issued repeated notices that its supplies from Qatar were limited.

In Canada, Industrial Info is following eight grassroot projects tied to the LNG sector. The largest by investment value is the Prince Ruppert Kanata floating LNG facility, slated for British Columbia. If built, the facility would have a peak design capacity of 12 million metric tons per year, making it a large-scale project.

Industrial Info Resources offers more information on these projects in its Global Market Intelligence (GMI) Oil & Gas Project Database, where readers can find details--including construction schedules, investment values and necessary equipment--in a list of the grassroot LNG projects, including the Kanata floating LNG facility.

Last year, Canada became the first country in North America to ship the super-cooled gas from the Pacific Coast when LNG Canada made its inaugural delivery. According to Industrial Info Resources data, LNG Canada has a peak design capacity of 14 million metric tons per annum. Readers can learn more from a detailed project report.

In May, developers behind the Ksi Lisims project, another floating installation slated for the coast of British Columbia, brokered the first-ever Canadian offtake agreement with a European partner when German energy company SEFE signed up for 1 million tons per annum from the project.

Developers recently signed an offtake agreement with Australian energy company Santos as well. Readers can learn more about Ksi Lisims from a detailed project report.

"There is a host of potential deals and relationships that we can execute on energy," the Canadian foreign minister said, adding it was "quite conceivable" that further European energy deals could be developed, including in France where President Emmanuel Macron was among those fretting over higher fuel prices.

French energy company Elengy is behind the Fos Tonkin LNG Storage & Regasification Terminal, one of the larger facilities of its kind in the country. It can regasify 317 million standard cubic feet from LNG per day, and includes on-site storage. Readers can learn more from a plant profile.

By the Numbers

• 20% of U.S. LNG exports went to France and the Netherlands last year
• 1 million tons per annum of LNG from Canada slated for Germany

Breaking U.S. Trade Ties May be Difficult

Securing LNG from the Pacific Coast of North America would be an expensive and long trip for carriers, and Europe has leaned more heavily on the U.S. for its supplies. France and the Netherlands last year were the largest European importers of U.S.-sourced LNG, accounting for about 20% of total U.S. LNG exports, U.S. federal data show.

Canadian Prime Minister Mark Carney, however, is in a full-on charm offensive with Europe, where European President Ursula von der Leyen held out the possibility of welcoming Canada as the first-ever associate member of the European Union.

The U.S., however, is Canada's largest trading partner by far, and much of that trade is centered around energy. Based on the latest data presented in the NATGAS Today report from Industrial Info, Canada delivered an average of 4.7 billion cubic feet of natural gas per day (Bcf/d) to the U.S., where imports were as high as 10.7 Bcf/d in January on seasonal factors.

Key Takeaways

• Canada sees potential in European energy deals
• Much of its infrastructure is located closer to the Pacific Ocean

---

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).