Canada-EU Energy Alliance Aims to Boost Security Without Crossing Atlantic
Canada is exploring opportunities to bolster Europe's energy security through an alliance that doesn't necessarily involve sending oil or liquefied natural gas (LNG) across the Atlantic Ocean, according to experts.
Prime Minister Mark Carney met with European Union leadership in Strasbourg, France, this week to discuss strengthening ties amid strained relations with the United States. Europe's energy security is precarious due to its reliance on Russian imports, which have been disrupted by the invasion of Ukraine and subsequent U.S.-Israel-Iran conflict.
Canada has existing pipelines and port infrastructure to export oil and gas from the West Coast to Asia, but there are no imminent plans to transport it to Europe. However, European companies can secure a stable gas supply through swap contracts, where cargo is traded between the Atlantic and Pacific basins within their larger portfolio.
Experts also see potential in 'reshuffling' oil supply, allowing Canada to add to the market and free up barrels for Europe that meet its stringent environmental standards. Alberta Premier Danielle Smith and Ontario Premier Doug Ford floated a plan called the Northern Shield Energy Corridor to ship Alberta crude to refineries Sarnia, Ont., but Werner Antweiler, an economist at the University of British Columbia, said European demand alone won't make this project viable.