Clock ticking on potential of Canadian LNG exports to Europe: minister

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OTTAWA – Canada’s pure sources Minister Jonathan Wilkinson mentioned the window to get pure gasoline to European markets is simply three years, with nations seeking to pivot to hydrogen quickly after.

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“They need to see the product in Europe inside three years or they’re actually not involved in half as a result of they’re aggressively shifting in direction of hydrogen, which is one thing that Canada may be very involved in supplying to Germany,” Wilkinson mentioned on the Home of Commons Pure Assets Committee on Thursday.

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German Chancellor Olaf Scholz was in Canada earlier this 12 months searching for alternatives to signal offers to export liquefied pure gasoline. Germany lengthy relied on Russian pure gasoline, however is quickly attempting to chop ties with Moscow as a result of invasion of Ukraine. Germany has since signed export offers for LNG in Australia and Qatar.

Throughout Scholz’s go to the 2 governments did announce a working group to search for LNG alternatives, however no agency offers have been made.

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Conservative MP Shannon Stubbs requested how there was so little progress advancing export terminals and why there didn’t appear to be funding throughout the finances for the working group.

“The U.S. has managed to assemble seven LNG services within the time that Canada has misplaced 25 alternatives,” she mentioned.

Wilkinson insisted the federal government was searching for good tasks, however wanted ones that might be prepared shortly.

“We now have been working with the Germans specifically trying on the alternative to have the ability to truly discover one thing that matches inside their window.”

Canada has just about no capability to export pure gasoline at the moment, however there’s a main undertaking underneath development on B.C.’s coast. There are a number of tasks proposed for East Coast ports, however none are exporting.

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Canada agreed to extend oil and gasoline manufacturing by about 300,000 barrels per day in 2022 to assist Europe cope with the lack of Russian oil and gasoline, which Wilkinson mentioned they’re on the way in which to reaching.

“I’ve spent an unlimited period of time with our European colleagues and definitely we have now endeavoured to do all the pieces we will to help them, together with increasing oil and gasoline manufacturing,” he mentioned.

He mentioned they’re trying towards the long run points and consider Canadian-made hydrogen may very well be a major contributor.

“There may be monumental work occurring on the East Coast related to constructing out each onshore and offshore for the aim of truly producing hydrogen and delivery it to Germany. There’s additionally important work occurring in Western Canada with respect to the manufacturing of hydrogen from pure gasoline.”

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