Canada Seeks to Diversify Energy Exports to Europe

Canada's energy alliance with Europe is still in its infancy, but experts say there are several ways the country can increase its trade with the region.

R.J. Johnston, director of energy and natural resources policy at the University of Calgary's School of Public Policy, said that while Canada has pipelines and port infrastructure to export oil and gas from the West Coast to Asia, it lacks similar infrastructure on the East Coast.

However, European companies can secure a stable gas supply from Canada through swap contracts, where a cargo headed for Asia could be traded with another one half a world away. Two German companies signed agreements earlier this year to buy liquefied natural gas from the Ksi Lisims LNG plant planned for British Columbia's northern coast.

Johnston said that Canadian oil and gas players are more trading-oriented, allowing them to pursue swaps and moving cargoes between the Atlantic and Pacific basins within their larger portfolio.