Canada and EU to explore Canadian LNG supplies to Europe — OilPrice
Canada and the European Union have agreed to conduct a long-term joint study of market conditions, infrastructure needs and the possibilities for supplying Canadian liquefied natural gas to Europe. The agreement was reached during the Canada-EU summit in Montreal in October 2026, OilPrice reports.
The initiative is part of Ottawa's and Brussels' intentions to strengthen economic and energy ties. The publication also writes about a proposed format of Canada's associate membership in the EU, which goes beyond a regular free trade agreement but does not envisage full membership in the bloc.
Contract with Germany's SEFE
Previously, Canada's Ksi Lisims LNG project in British Columbia signed a 20-year agreement with Germany's SEFE. Under its terms, SEFE plans to purchase 1 million tonnes of Canadian LNG per year, with deliveries expected in the early 2030s.
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A project to export LNG to Europe via the port of Churchill is also at the feasibility study and preliminary planning stage. Manitoba Premier Wab Kinew said that expanding the necessary infrastructure, including the construction of a marine terminal for LNG loading, could cost between $70 billion and $80 billion. The project would also require icebreaker escort for vessels because of ice conditions in Hudson Bay.
EU gas demand is declining
At the same time, the prospects for new Canadian export projects depend on Europe's future demand for gas. According to an assessment by a Brussels-based think tank, gas consumption in the EU in 2025 was 17% lower than in 2020. Electrification Alliance Director Adrian Hill said that the EU is rapidly reducing its use of gas and may significantly diminish the role of LNG by the middle of the next decade.
According to Eurostat, renewable sources accounted for 54.1% of electricity generation in the European Union in the second quarter of 2026. The EU is also committed to reducing greenhouse gas emissions by 55% by 2030 compared with 1990 levels, which entails a further reduction in fossil fuel consumption.
