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As Russia moved at lightning speed to annex Ukraine’s Crimea region, a hapless Europe continued to move at an oil tankers’ pace to wean itself off Moscow’s formidable energy resources.
A handful of EU nations, however, are waking up to the energy abundance of their NATO allies in North America. Ambassadors from Czech Republic, Hungary, Slovakia and Poland sent a letter to U.S. House Speaker John Boehner this month to help expedite approval for liquefied natural gas export licences to their countries, and help reduce their dependence on Russia.
Joe Oliver, Canada’s Minister of Natural Resources, said he has not received a similar request from the countries, but noted that Canada can be part of the solution by exporting energy products to the European Union.
“Europe’s strategic need to diversify its sources of energy points to Canada and complements our strategic imperative to diversify our markets,” the minister said in a statement sent to the Financial Post.
Dariusz Mańczyk, Minister Counsellor, Economic Affairs at the Polish embassy in Ottawa said it would be “premature” to send a request to Canada, but would welcome Canadian energy supplies once the gas export terminals were ready.
“Poland has started a discussion with the European Union on the possibility of diversifying sources of imports, especially as far as the gas is concerned. This was discussed by our Prime Minister when he met [German Chancellor] Angela Merkel three days ago.”
Beyond the political desire on both sides to forge greater energy ties, Europe and North America have pursued contrasting energy strategies.
Canada and U.S. have ramped up oil production and are looking to export natural gas primarily to Asia. Meanwhile, Europe has trod the green path to renewable energy, which has seen business costs soar even as it reined in carbon emissions.
The EU’s gas diversification efforts has also been geographically limited to securing natural gas from Azerbaijan, pipeline investments in Central Asia and long-term deals with Norway, Algeria and Qatar.
In Canada, most of the natural gas export projects proposed are facing Asia, which has traditionally fetched higher prices and promises greater long-term demand.
“Who says Europe is the best in terms of economics to ship all that LNG [from North America],” Petra Dolata, lecturer at London-based European Centre for Energy and Resource Security, said. “When you fetch US$17 in the Asian market, as opposed to US$11 on the European market, you would rather ship it to Asia.”
Two Canadian East Coast projects could potentially help — although they may be a drop in the ocean.
For the rest of this article, click here: http://business.financialpost.com/2014/03/18/how-europe-is-turning-to-north-america-to-wean-itself-off-russian-energy-exports/?__lsa=8700-560c