January 24, 2023

On LNG, Canada Turned Away Germany, Then Japan—This Country Cannot Keep Doing That

By: Rachel Ziemba and Leslie Palti-Guzman

In mid-January, Prime Minister Fumio Kishida announced Japan’s interest in buying more Canadian energy supplies. Canadian Prime Minister Justin Trudeau lauded Japan for agreements to purchase from the soon-to-launch LNG Canada project, before quickly changing the subject to critical minerals and battery production, the newest focus of his country’s industrial policy. While those latter efforts can be positive for Canada, Mr. Trudeau’s messaging reflects a missed opportunity for Canada to use its energy not just for its own benefit but that of others.

Canada has an opportunity to insist producers invest in the cleanest LNG supplies.

To his credit, Mr. Trudeau avoided making the same statement he made some months ago, when he claimed, on German Chancellor Olaf Scholz’s visit, that there was “no business case” for meaningful increases in LNG exports. Still, much like with Germany, which ended up securing only a few agreements on hydrogen projects after Mr. Scholz’s visit, Mr. Trudeau gave Japan no promises of expanding LNG projects or encouraging new ones.

Read the full article from The Globe and Mail.

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