Germany fails to find replacement for Russian gas – Die Zeit

Aug 23, 2022 | BUSINESS

Berlin’s LNG talks with Canada turned out to be fruitless, the newspaper reports

Attempts by German Chancellor Olaf Scholz to secure Canadian gas in order to reduce the EU’s reliance on Russian energy have been unsuccessful, Die Zeit newspaper reported on Tuesday.

Scholz met with Prime Minister Justin Trudeau in Montreal on Monday to discuss the idea of shipping some of Canada’s abundant natural gas across the Atlantic to terminals in Germany.

However, Trudeau appeared to pour cold water on such an idea, according to the report.

While not ruling out a role for Canadian natural gas in alleviating Europe’s energy shortage, the Canadian leader stated there isn’t a clear business case yet for building a liquefied natural gas (LNG) export terminal in Saint John or elsewhere.

He then pointed out that natural gas would have to be shipped by pipeline from the fields of Western Canada to a still-unbuilt liquefaction terminal on the Atlantic coast. That would be a costly undertaking and might not be a prudent investment, given Europe’s commitment to rapidly transitioning to clean energy, noted Trudeau.

“There has never been a strong business case because of the distance from the gas fields, because of the need to transport that gas over long distances before liquefaction,” he explained, adding that “right now, our best [solution] is to continue to contribute to the global market, to displace gas and energy that then Germany and Europe can locate from other sources.”

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