Page 16 - GLNG Week 12 2023

GLNG EUROPE GLNG

McDonald also noted how volatile gas prices for one LNG export terminal, and Repsol’s New
have been. The price of gas after Russia’s invasion Brunswick project could be brought online first.
of the Ukraine in February 2022 jumped in Can- Pieridae Energy has been proposing an LNG
ada more than eight-fold, although it has since facility in neighbouring Nova Scotia.
dropped almost to pre-invasion levels, he said. “The amount of gas that is available would be
Europe has been seeking LNG as it shifts available only for one facility at this point,” Guil-
away from importing gas from Russia because beault told the news service. Constructing new
of the war in Ukraine. In 2021, Russia exported gas pipelines was not “very realistic”, he added.
about one-third of the European continent’s “Repsol is probably the fastest project that
needs, or 15bn cubic feet (425mn cubic metres) could be deployed because it requires minimal
per day. permitting – there’s already an existing facility,
The Saint John LNG terminal has had a var- (and a) gas line is right there,” he reportedly said.
iable history. In 2021 Repsol – the 75% owner In Repsol’s most recent second quarter earn-
– bought out Irving’s 25% stake and became the ings call in July 2022, the company’s investor
sole owner. At the time it was named the Cana- relations chief, Ramon Alvarez-Pedrosa, said
port LNG import terminal and had a capacity of the company had met with authorities in “some
1.2 bcf (34.0 mcm) per day of imports. European countries,” such as Germany.
But five years before that, Repsol and Irving Alvarez-Pedrosa cautioned that an offtake
had decided against a plan to retool the existing agreement for 15-20 years would be necessary
import terminal because of low gas prices and to proceed, as well as a “competitive” toll frame-
the high cost of converting the terminal to ship work for imports of Western Canada gas. “I’m
LNG for export. The owners had unsuccessfully talking of things that are not in our hands,” he
sought new investors, which at the time was seen said. “But, it could be…possible in the frame-
as because of the estimated cost of the retrofit of work of the energy crisis we are seeing.” At the
CAD4bn ($3bn). time, Europe was urgently seeking new sources
In later years, Repsol planned to add an of gas.
export terminal instead of undergoing a retool- But by August of 2022, when German Chan-
ing facility. cellor Olaf Scholz visited Ottawa hoping for an
The export facility had been touted by Cana- LNG commitment, Trudeau and his government
dian Prime Minister Justin Trudeau’s office as had started wavering about exports to Europe.
helpful for various European countries. “Specif- Trudeau’s Liberal government, under pres-
ically, we note the potential of Repsol’s…facility sure to reduce reach climate goals and green-
in Saint John, New Brunswick, to eventually house gas (GHG) emissions, was starting to
export LNG to Europe,” the office said in June question LNG exports from Canada’s East Coast
2022. “Spain’s LNG regasification plants may publicly. At a joint press conference with Scholz,
provide needed capacity to support efforts to Trudeau said: “There has never been a strong
reduce European reliance on Russian energy.” business case” for LNG terminals on Canada’s
In June 2022, Canada’s Environment Minis- East Coast.
ter, Steven Guilbeault, had specifically told Reu- And just days before the German chancel-
ters that Repsol’s LNG terminal was the fastest lor arrived, in August 2022, Canada’s Natural
way for Canada to increase the supply of gas to Resources Minister, Jonathan Wilkinson, had
Europe. told Reuters that Canada’s government pre-
But Guilbeault had also cautioned that Can- ferred to export hydrogen to Europe rather than
ada’s east coast only had enough imported gas LNG. ™

P16 www. NEWSBASE .com Week 12 24•March•2023