European Parliament President Sees Strong Demand for Canadian Energy

European Parliament President Roberta Metsola stated that there is a significant market for Canadian oil and gas in Europe. As European Union (EU) nations work to reduce their dependence on Russian energy, Metsola indicated that member states might be willing to pay a premium for conventional energy exports from Canada. In an interview on CTV Question Period aired this past Sunday, Metsola affirmed the potential for Canada’s energy exports to meet European needs.

During the discussion, host Vassy Kapelos asked Metsola directly if Europe could become a customer for Canada’s conventional energy. She responded affirmatively, pointing out the shift in Europe’s energy strategy following the Russian invasion of Ukraine. “We found ourselves, to a certain extent, reliant on a very unreliable partner for gas and oil,” she explained. “We have had to divest and uncouple ourselves, and we’re almost completely done.” Metsola emphasized that finding alternative sources is crucial for Europe’s energy security.

Metsola visited Ottawa last week for a meeting of G7 speakers and reiterated that while the EU is committed to its climate goals and renewable energy plans, these efforts alone are insufficient. “Where do we go? Where do we look? We have to look across the Atlantic,” she highlighted, suggesting that dialogues surrounding energy imports from Canada are already underway.

The Canadian federal government is also preparing to facilitate energy exports. In June 2023, Parliament passed Bill C-5, known as the Building Canada Act, which grants the government enhanced powers to expedite major projects deemed of national interest. When asked if Europe is prepared to absorb potentially higher costs for importing Canadian oil and gas, Metsola confirmed that negotiations are ongoing. “We have had to go into very, very expensive divestment when we had to uncouple from Russia,” she stated, indicating that the discussion of costs is complex and contextual.

Metsola noted that several European countries have turned to “more unreliable partners” for fossil fuel imports due to geographical proximity. This reliance underscores the need for reliable energy sources. “That’s why we talk about joint partnerships,” she remarked, adding that energy security is integral to discussions about strategic autonomy.

In Canada, Prime Minister Mark Carney has been advocating for stronger economic and energy ties with Europe. This push comes amid ongoing trade challenges with the United States. During previous interviews, leaders such as Greek Prime Minister Kyriakos Mitsotakis and former Polish President Andrzej Duda expressed interests in purchasing Canadian liquefied natural gas (LNG). Recently, Canada’s Energy Minister Tim Hodgson echoed confidence in finding buyers for Canadian LNG.

This shift toward pursuing LNG exports marks a significant change from the previous stance of former Prime Minister Justin Trudeau, who had indicated in 2022 that there was “never a strong business case” for LNG exports to Europe. Currently, Canada operates one major LNG export terminal—LNG Canada in Kitimat, British Columbia—which began shipping gas in June 2023, primarily targeting Asian markets. There are six additional LNG export projects in various stages of development, reflecting Canada’s growing focus on international energy markets.

As Europe seeks to secure stable energy sources, Canadian oil and gas may play a pivotal role in shaping the continent’s energy future.