Page 12 - AsianOil Week 03 2023

AsianOil POLICY AsianOil

Japanese PM to talk gas in Canada

JAPAN AHEAD of the first official visit to Canada At the crux of any guarantees on LNG exports
this week by Japanese Prime Minister Fumio will be the first LNG export facility built in Can-
Japan is interested in Kishida, political commentators on both sides of ada, in which both Japanese and South Korean
Canadia LNG and later the North Pacific expected talks on future LNG interests have been invested since its announce-
potentially hydrogen. supplies to Tokyo to feature prominently. ment in late 2018.
And with Tokyo having succeeded to the role Located in Kitimat, around 650 km north-
of Group of Seven president as from January 1, west of Vancouver in British Columbia, initial
all eyes in industry circles back home in Tokyo projections had the terminal set to come online
were on Kishida’s efforts to guarantee future in 2024.
shipments of Canadian LNG. Delays by the Canadian government and the
Canada too, under Prime Minister Justin widespread lockdowns caused by the COVID
Trudeau, was in the spotlight as it welcomed the pandemic have now combined to push this date
first Asian leader following a new Indo-Pacific back to 2025, though, according to sources.
strategy launched in November. Speaking at the time, former Canadian
Both Japan and Canada in recent months Finance Minister Bill Morneau said: "The gov-
have been working to counter Chinese influence ernment of Canada is proud to support this his-
in the north-east Asian region, albeit with Japan toric C$40bn ($30bn) project that will get our
so dependent on energy exports from Chinese resources to new markets, diversify our trade,
ally Russia, Tokyo was last year provided with an grow our economy and create middle-class jobs
exemption regarding ongoing caps on the price for Canadians.”
of Russian oil by the G7. When complete the LNG Canada site will
Speaking to Canadian media, Business Coun- include a pair of gas liquefaction plants, with a
cil of Canada vice-president for international combined capacity in the region of 14mn tonnes
policy Trevor Kennedy pointed out that Prime per year (tpy).
Minister Kishida will be looking for assurances Leading shareholders in the project include
from Ottawa on future LNG supplies. “They’re Shell (40%), with Malaysia’s Petronas also
stuck in a situation where they’re sourcing their holding a 25% stake. Japan’s Mitsubishi Corpo-
LNG from Russia, and they don’t have another ration holds 15%, as does the Beijing-based Pet-
option,” Kennedy said. roChina, with Kogas of South Korea controlling
Kennedy also noted that Japanese energy the remaining 5%.
officials accompanying Kishida would also likely Yet while supporting calls from Canadian
raise the issue of future hydrogen deals with their Foreign Affairs Minister Melanie Joly, who last
counterparts in Canada. month said she wanted to steer Canada “as close
Rather than being seen as a trip only aimed to Korea and to Japan as we are to Germany,
at securing Canadian support for LNG exports, France and Great Britain” during a French lan-
however, officials in Japan have pointed to the guage speech, Japanese Ministry of Economy,
possibility of a trade-off, with Kishida dangling Trade and Industry (METI) Minister Yasutoshi
the carrot of support for Canadian hopes to join Nishimura was somewhat more direct.
the wider Indo-Pacific Economic Framework for He said: “There is a risk involved in relying
Prosperity. excessively upon a single country economically”
In recent months Canada has been lobbying in comments seen as an allusion to Russian influ-
member nations for access to what is essen- ence on Tokyo’s energy supplies as well as Chi-
tially an organisation offering established sup- nese influence on Canadian trade in Asia.
ply-chains and tax infrastructure around the But “we now fear that risk more intensely
Pacific. than ever,” Nishimura added. ™

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