Natural Resources Minister Tim Hodgson announced that German companies are expressing interest in Canadian liquefied natural gas (LNG) during a news conference in Berlin. This marks a shift in policy from the previous Liberal government under former Prime Minister Justin Trudeau, who had been skeptical about LNG exports to Germany. Hodgson stated, "The previous government made its decision based on the situation at the time. What we've been elected to do is respond to the realities today, taking into account what Canadians expect of us. And I would say the realities today are quite different than they were two or three years ago."
While Hodgson did not disclose the names of the German companies, he indicated that many buyers are ready to trade Canadian fossil fuel on the international market. He noted, "They can take advantage of our production on the West Coast to supply German needs in the Atlantic."
Hodgson highlighted the impact of geopolitical events on energy needs, stating, "Three years ago, Russia's full-scale invasion of Ukraine plunged Europe into the worst energy crisis since the 1970s. And Germany faced the hardest energy shock in generations." He emphasized that the current economic tensions with the U.S. are prompting Canada to strengthen its economic and security relationships with allies worldwide.
In a previous meeting with former German Chancellor Olaf Scholz in August 2022, Trudeau had expressed concerns about the investment required for LNG exports, stating there was no strong business case for such exports to Germany.
Hodgson also announced that a new major projects office, part of the Liberals' C-5 legislation aimed at expediting project approvals, is expected to launch soon. He said, "I am hopeful you will be quite pleased on Thursday or Friday with the announcement of the launch of the major projects office, the leadership of the major projects office and the plans for it."
The major projects office will coordinate with provincial and territorial governments to determine which jurisdiction will assess the environmental impact of significant projects. Hodgson mentioned that Prime Minister Mark Carney would soon announce the first major projects selected by this office, which may include expansions of the Port of Montreal and the Port of Churchill, particularly for LNG exports.
However, Conservative Leader Pierre Poilievre criticized the government for delays in launching promised projects. He stated, "Not only is there not a single shovel in the ground on any of these projects, there are not even firm proposals. Mr. Carney has been frantically jetting around the world doing photo ops and signing phony declarations that are unenforceable and have no money attached to them."
Despite the criticism, Jay Khosla, executive director of economic and energy policy with the Public Policy Forum, supported Carney's international engagements. He remarked, "The world is asking us for this, not the other way around. This kind of signaling can lead to a lot of success."
Khosla emphasized the importance of efficiently running the major projects office, stating, "We need to be both efficient and effective. Timelines in that space matter. This government is saying timelines matter, so that's terrific."