Germany Doesn't Expect LNG Agreement With Canada Next Week

A German government source quoted by Reuters has thrown cold water on speculation that an LNG deal with Canada may be agreed during a trip from German Chancellor Olaf Scholz beginning on Sunday.

• A statement from the office of Prime Minister Justin Trudeau said this week: "The leaders will also continue collaboration on ways the two countries can work together to safeguard energy security, and accelerate the global transition to clean energy, including through secure access to key resources like clean hydrogen and critical minerals."
• The German source said, "Germany is looking at potential LNG deliveries from Canada in the medium term, not next one or two years." The source also warns that the European gas crisis could intensify in the winter as, "Russia is looking for excuses not to deliver gas."
• A joint statement from the Business Council of Canada, the Canadian Chamber of Commerce, the Canadian German Chamber of Industry and Commerce reads: “In the short term, Europe needs to wean itself from its dependence on Russian energy and increase its imports of energy products, especially LNG... Currently, global LNG supply is limited, as is Europe’s capacity to import it. By speeding up the deployment of Canadian LNG export facilities, Canada can help keep European industry running and households warm.”
• A report from the International Institute for Sustainable Development cautions that Canadian LNG infrastructure would "take years to build and come online," too late to address Europe’s gas needs.
  • The report reads: "This results in a fundamental mismatch with Canadian supply opportunities. Canada cannot ramp up supply before 2025, while Europe’s energy needs will largely be resolved by that time."
• Scholz and Trudeau are however, expected to sign an agreement to jointly explore the production of hydrogen in Stephenville, NL.