imported any since 2019. However, this is not the case for Europe, where Russian oil and gas are critical.
As many of its major western allies, including the United Kingdom, target what has been described as the “main artery” of Russia’s economy, the European Union has found itself in a tight spot, with Moscow supplying for more than a quarter of the bloc’s oil needs and 40 per cent of its natural gas. Now, as the conflict escalates, European Commission president Ursula von der Leyen noted that the EU needs to look for alternatives. “We simply cannot rely on a supplier who explicitly threatens us,” she said.
However, replacing Russia’s supply of fossil fuels is not simple. According to Canadian Environment Minister Steven Guilbeault, even as the world’s fourth largest oil and gas producer, his country is unable to step in as an alternative supplier owing to logistical challenges. “We have to be realistic,” he said.
According to the Minister, Europe needs about three million barrels of oil a day and even if the expansion of the Trans Mountain pipeline is completed in two years as planned, it ships to Burnaby, in British Columbia, which is on the wrong side of the continent when exporting to the EU. There are several other challenges, including the inability of European refineries to process Canadian heavy crude. In the case of natural-gas, Guilbeault pointed out the Coastal Gas Link LNG project in B.C. is still several years away from completion.
Accordingly, Ottawa is offering a different solution to meet the EU’s energy needs. The future is in renewable energy and not in oil and gas the Canadian Environment Minister noted. “European leaders want not only to reduce their reliance on Russian oil, they want to reduce their reliance on oil altogether,” he said. “This is where Canada can really help.”
Guilbeault pointed to hydrogen as one of the most viable sources. Although Canada is one of the world’s top 10 hydrogen producers, it is still in its early stages as an energy industry, supplying about three million tonnes of it for industrial purposes.
Nevertheless, it was a major subject of discussion when Canadian Prime Minister Justin Trudeau met with German Chancellor Olaf Scholz on Wednesday. “This is one aspect for a very long-term strategic co-operation between Canada and Germany, because we understand acutely that Canada is a country that can help us import hydrogen, which will be produced in an environmentally friendly manner,” Chancellor Scholz said in German.
