The Globe and Mail reports in its Saturday edition that Prime Minister Mark Carney is gung-ho to turn Canada into an "energy superpower." The Globe's Eric Reguly writes that
Canadian LNG exports to the EU are seen as a way to strengthen the transatlantic alliance. While Canada has abundant energy resources, the EU does not. Canadian LNG was a key topic at the recent Canada-EU summit in Montreal.
The idea has geo-economic appeal. It would boost Canadian LNG development, which has lagged behind the United States, Norway, Australia, Qatar and Russia projects, while also diversifying the EU's energy supply. The EU seeks to cut its heavy dependence on U.S. LNG, which could disappear if political conditions change.
But the idea clashes with the EU's energy reality.
The EU's gas demands are falling fast. If the trend remains intact, its appetite for imported LNG will fall with it. LNG projects can take a decade or longer. By then, the EU's gas consumption could be half or less of what it is now. "What is clear is that the EU is reducing its gas consumption drastically," says Electrification Alliance's Adrian Hiel. "The long-term trend is clear and by the middle of the next decade, Europe should be out of the LNG game."
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