Why Canadian Liquefied Natural Gas Is Not the Answer for the European Union’s Short-Term Energy Needs

The document asserts that Canada lacks the necessary infrastructure to provide immediate LNG supplies to the EU following the Russian invasion of Ukraine. It highlights that while the EU seeks short-term alternatives, it is simultaneously accelerating its 'Fit for 55' and 'REPower' plans to reduce gas demand and achieve climate neutrality. With new Canadian projects taking at least three years to complete, the author concludes that such investments risk becoming stranded assets as European demand declines.

• Canada currently lacks any operating overseas LNG export infrastructure, as most proposed projects over the last decade were cancelled or postponed due to low prices and financing difficulties.
• The LNG Canada project in Kitimat, British Columbia, is the first completed export facility expected to be operational in 2025, but it is designed to serve Asian markets rather than European ones.
• The European Union is implementing the 'REPower' plan to reduce Russian gas imports by two-thirds by the end of 2022 and aims for total independence from Russian fossil fuels by 2027.
• EU gas demand is projected to drop by 32%–37% by 2030 due to the European Climate Law and the 'Fit for 55' package, which includes increasing solar and wind capacity and doubling heat pump installations.
• Proposed Canadian LNG projects in the Atlantic provinces—including LNG NL, Goldboro LNG, and the Repsol terminal in Saint John—cannot be scaled up in time to meet immediate EU needs, with completion estimates ranging from 3 to 5 years.
• Investment in new Canadian LNG infrastructure intended for Europe carries a high risk of creating stranded assets because EU demand will likely be resolved or significantly reduced by the time these facilities come online.

APA

Dusyk,, L. T. C. (2022). Why Canadian Liquefied Natural Gas Is Not the Answer for the European Union’s Short-Term Energy Needs. International Institute for Sustainable Development. https://www.iisd.org/articles/deep-dive/canadian-lng-not-eu-energy-crisis-solution

Chicago

Dusyk,, Lasse Toft Christensen,Nichole. Why Canadian Liquefied Natural Gas Is Not the Answer for the European Union’s Short-Term Energy Needs. International Institute for Sustainable Development, 2022. https://www.iisd.org/articles/deep-dive/canadian-lng-not-eu-energy-crisis-solution.

Wikipedia

{{cite report |last1=Dusyk, |first1=Lasse Toft Christensen,Nichole |title=Why Canadian Liquefied Natural Gas Is Not the Answer for the European Union’s Short-Term Energy Needs |publisher=International Institute for Sustainable Development |date=16 August 2022 |url=https://www.iisd.org/articles/deep-dive/canadian-lng-not-eu-energy-crisis-solution |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dusyk2022why, author = {Dusyk,, Lasse Toft Christensen,Nichole}, title = {{Why Canadian Liquefied Natural Gas Is Not the Answer for the European Union’s Short-Term Energy Needs}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = aug, url = {https://www.iisd.org/articles/deep-dive/canadian-lng-not-eu-energy-crisis-solution}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }