Canada could increase oil and gas exports to replace supply from Russia

CALGARY, – Canada has the capacity to increase its oil and gas exports to 300,000 barrels per day (bpd) by the end of 2022 to help improve global energy security following Russia’s invasion of Ukraine .

This was stated by the Canadian Minister of Natural Resources, Jonathan Wilkinson, on Thursday (24/3/2022).

Wilkinson said Canada would also look for ways to replace Russian gas with liquefied natural gas (LNG) from Canada after requests from European countries.

Also Read: Canadian Restaurant Removes Menu Called Poutine Because It Looks Like Poutine

Wilkinson was in Paris, France, for a meeting at the headquarters of the International Energy Agency (IEA), where the United States and its allies discussed ways to calm volatile energy markets.

Canada is the fourth largest crude oil producer in the world.

Canada wants to help bolster long-term energy security as countries that previously relied on Russian oil and gas seek replacements despite Russian sanctions.

Wilkinson said Canada could increase oil exports by 200,000 bpd and natural gas exports by 100,000 barrels of oil equivalent per day (boepd) this year.

“Our European friends and allies need Canada and others to step in,” Wilkinson said. Reuters.

“They told us they needed our help to unleash Russian oil and gas in the short term, while accelerating the energy transition across the continent,” he said.

Also read: Canada urges its citizens to leave Russia!

Canada currently exports about 4 million barrels of oil per day to the United States, a small portion of which is re-exported overseas.

The announcement comes less than a week before Canada releases a detailed plan on how it will reduce carbon emissions.

Environmental activists are urging the government to focus on replacing Russian energy with cleaner sources.

“The only real solution to the oil onslaught on people and climate is to accelerate the transition from fossil fuels by investing in renewable energy and energy efficiency,” said Keith Stewart, Greenpeace Canada’s senior environmental strategist. of energy.

Wilkinson said Canada was in talks with European countries about whether they could build more LNG projects.

Currently, Canada does not export LNG, but a consortium led by Shell (SHEL.L) is building a large facility on the west coast.

Also read: Ukraine receives a batch of machine guns and surveillance equipment from Canada

“Any LNG project must have very low emissions and be able to transport hydrogen in the future as Europe reduces its use of fossil fuels,” Wilkinson said.

According to him, on the east coast of Canada, there are several potential projects that are undergoing a regulatory process.

Private company Pieridae Energy has proposed to build a 2.4 megaton per year floating LNG facility in Nova Scotia, on Canada’s east coast.

It will probably take three or four years to build the Goldboro project.

But Pieridae spokesman James Millar said it would be a long-term solution to Europe’s long-term energy security problem.

Over the past decade, 18 LNG export facilities have been proposed for Canada, but the projected development boom on the Pacific coast in the mid-2010s has not materialized as global oversupply lowered natural gas prices.

Wilkinson also attended the meeting to discuss how IEA member countries can work together to ensure the availability of critical minerals needed for the energy transition.

Read also: The situation is heating up, Canada withdraws its troops from Ukraine

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Robert Butler

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