Canada-EU Energy Alliance Takes Shape Amid EU's Precarious Energy Situation

Canada and the European Union are exploring the possibility of an energy alliance to strengthen Europe's energy security, but it won't necessarily involve tankers crossing the Atlantic Ocean with oil or liquefied natural gas.

Prime Minister Mark Carney met with EU leaders in Strasbourg, France, where they discussed strengthening ties amid strained relations with the United States.

According to economist Werner Antweiler, Europe is in a 'precarious situation' as it tries to reduce its reliance on Russian energy imports following the invasion of Ukraine in 2022.

Canada has pipelines and port infrastructure to export oil and gas from the West Coast to Asia, but no similar option exists on the East Coast, and any new project would take over a decade to come online.

In the meantime, Antweiler suggests European companies could secure a stable gas supply from Canada through swap contracts, where cargo bound for Asia is traded with one headed for Europe.