It’s been a minute since we’ve discussed Canada’s ambitions to become a leader in liquefied natural gas (LNG) exports. How are things going? Honestly, not great.
What happened: Spanish energy company Repsol dashed Canada’s LNG to Europe dream after concluding that an Extreme Makeover: Home Edition-style renovation of its LNG import terminal in New Brunswick into an export terminal would be just too dang expensive.
- The company balked at the cost of shipping natural gas from Western Canada across the country, in addition to adding new facilities and pipeline upgrades.
There are other terminal proposals in the works, but Repsol’s idea to expand on an existing facility showed the most promise, as it meant it could have been up and running faster.
- It also had strong federal support. Canada’s natural resources minister even told Bloomberg last year that the facility could be up and running by 2025.
Why it matters: Last year, Canada was tapped as the next great LNG exporter, despite having *checks notes* zero export terminals. Even though Europe’s energy crunch is subsiding, leaders in the region (especially from Germany) are still actively looking to fully replace Russia as a supplier. Canada could miss out big time if it doesn’t step up.
Plus: Canada’s future as a potential LNG supplier to Asia, that other energy market, is a lot murkier after BC passed emissions limits setting a high bar for future LNG projects.—QH