Canada-EU Energy Alliance Faces Hurdles as Europeans Seek Diversified Fossil Fuel Supplies
Canada and Europe are exploring ways to strengthen their energy alliance, particularly in light of the recent shift away from Russian fossil fuels. While Canada has pipelines and port infrastructure for exporting oil and gas to Asia from its West Coast, it lacks similar infrastructure on the East Coast to easily export to Europe.
R.J. Johnston, director of energy and natural resources policy at the University of Calgary's School of Public Policy, notes that 'there's nothing imminent in the short-term' to physically transport oil and gas from the East Coast to Europe. However, European companies can secure a stable gas supply from Canada through swap contracts, where they trade cargoes with other companies.
German companies have already signed agreements to buy liquefied natural gas from the Ksi Lisims LNG plant planned for northern British Columbia's coast. This is part of a larger trend, as some players in the industry are focusing on trading and moving cargoes between different basins within their portfolios.