Canada sees Repsol LNG as fastest way to boost gas supply to Europe
30/06/2022 18:54
(Adds more comments, background)
By Steve Scherer
OTTAWA, June 30 (Reuters) - Canada's East Coast has only
enough natural gas supply to accommodate one new liquefied
natural gas (LNG) export facility, and the project that would
boost shipments to Europe the fastest is Repsol's REP.MC ,
Canada's environment minister told Reuters.
In May, Canada said it was in talks with Spanish company
Repsol's LNG facility in New Brunswick and Pieridae Energy
PEA.TO , which has proposed building an LNG facility in Nova
Scotia, about increasing exports to Europe. urn:newsml:reuters.com:*:nL2N2WY1YV
"The amount of gas that is available would be available only
for one facility at this point," Environment Minister Steven
Guilbeault said in an interview late on Wednesday, adding the
idea of constructing new gas pipelines in Canada was not "very
realistic".
"Repsol is probably the fastest project that could be
deployed because it requires minimal permitting - there's
already an existing facility, (and a) gas line is right there,"
Guilbeault said.
The vast majority of Canada's natural gas is produced in the
western provinces of Alberta and British Columbia.
Europe is seeking to diversify its energy supplies as it
pivots away from Russian oil and gas after the invasion of
Ukraine. Canada's foreign minister said on Wednesday talks had
taken place with its European allies, including Spain and
Germany, about increasing its East Coast exports. urn:newsml:reuters.com:*:nL1N2YG1LF
Canada, the world's sixth-largest natural gas producer
according to 2020 figures, does not currently have any
functioning LNG facilities, though one is under construction on
the West Coast.
Canada is seeking to increase oil and gas exports by 300,000
barrels per day by the end of this year to help improve global
energy security, but in the short term can do no more,
Guilbeault said. urn:newsml:reuters.com:*:nL2N2VR1Z6
Making the current Repsol LNG import facility in Saint John,
New Brunswick, also an export facility may help lift supply in
the medium term, as long as the facility respects Canada's
requirements for steady reductions of carbon and methane
emissions, he said.
"So it's a project that could be deployed rather rapidly,
but we're still talking about some years" before it could export
LNG to Europe, Guilbeault said, referring to the Repsol project.
When asked about the minister's comments, Repsol said in a
statement it "will look at any/all business that enhances or
creates value at the Saint John LNG, including the potential to
add liquefaction capabilities to the existing facility."
While Canada has said it is keen to help its European
allies, the government is also seeking to reduce its carbon
emissions to net zero by 2050, and it has regularly missed its
reduction goals in the past.
Approving new fossil fuel projects at this stage would
appear to run against its climate goals.
Guilbeault said he had conversations with German officials
about increasing gas flows, adding they want the new LNG
facility to be converted to exporting hydrogen instead of gas
long before 2050.
The Germans are "very keen on finding ways to convert these
LNG facilities to hydrogen as soon as the technology is
available," he said.
(Reporting by Steve Scherer
Additional reporting by Isla Binnie in Madrid
Editing by Barbara Lewis and Mark Potter)
((steve.scherer@thomsonreuters.com; +1-647-480-7889;))