Germany Will Not Discuss Rapid Expansion Of Lng Exports During Visit To Canada

When German Chancellor Olaf Scholz visits Canada next week to address the energy crisis plaguing his country, the prospect of a rapid expansion of Canadian liquefied natural gas exports will not be up for discussion, according to Canadian and German officials. . Instead, Mr. Scholz and his entourage are expected to focus on long-term energy goals. And they will look to bolster Canadian efforts to develop renewable energy markets, with a particular focus on hydrogen fuel. The two countries will enter into an agreement to promote the expansion of Canadian hydrogen exports. Mr. Scholz and Prime Minister Justin Trudeau will sign the agreement in Stephenville, NL, where there are plans to build a plant that will use wind power to produce the fuel. The German Federal Finance Ministry has confirmed that LNG will not be discussed in next week’s visit. However, spokeswoman Susanne Ungrad noted that the German government remains interested in Canadian LNG. “Whether there could be deliveries will have to be decided by the trading companies,” he said. The visit is not a trade mission, but will look like one. Mr Scholz will be joined by executives from Germany’s energy, environmental, chemical, automotive, shipping and mining sectors. Volkswagen CEO Herbert Diess will be among the delegation. The CEO of Siemens Energy, Christian Bruch, will do the same. The trip and deal are part of the German government’s efforts to become less dependent on Russian gas and mineral supplies by deepening energy and raw materials partnerships with other countries. Russia’s acquisition of these essential supplies has become politically fraught in recent months, as Moscow’s invasion of Ukraine has drawn international condemnation and sanctions. Recent sharp cuts in Russian gas flows to Europe have forced Germany to prepare for gas rationing. Trudeau and Scholz must face hard truths about energy security Although Germany is interested in Canadian LNG, its leadership in Berlin has little confidence that Canadian companies are able to deliver when the country needs it. And Germany’s desire for natural gas could diminish over time because the country has pledged to phase out fossil fuels by 2035. Canada currently has no operational LNG export terminals. And it has just one of them under construction: the Shell PLC-led LNG Canada project, which will transport liquefied natural gas to Asia from Kitimat, B.C. To ship the fuel to Europe, Canada would need to build terminals on its east coast, but the likelihood of them coming together quickly is low. Environment Minister Steven Guilbeault told All Nova Scotia, a media outlet in Atlantic Canada, that the federal government will not support expanding pipeline capacity from Alberta to help export LNG from the Atlantic provinces. He added that new Canadian LNG facilities cannot be built in time to meet Europe’s short-term energy needs. Charlie Grueneberg, a spokesman for Future Gas, a German association, said Canadian investor interest in building LNG export terminals on the East Coast is limited because the German government’s energy and climate policies make the country look unlikely to be a long-term buyer of natural gas. Ottawa recently rejected the idea of ​​federal funding for two private-sector proposals to export East Coast LNG to European countries: one by Pieridae Energy Ltd.’s Goldboro LNG; and one from Repsol SA’s Saint John LNG, which operates an LNG import terminal. No company has made concrete construction plans. Natural Resources Minister Jonathan Wilkinson told The Globe in June that the two proposals would have to stand on their merits and go through Canadian regulatory reviews to ensure they meet that country’s climate goals. In a statement to the Globe on Thursday, Mr. Wilkinson’s office reiterated that “any new potential project should incorporate energy transition considerations into project design, such as plans to transition to hydrogen generation and export.” In an e-mail, Repsol spokesman Mike Blackier said the company is constantly exploring options to maximize the value of its import terminal, with a particular focus on new, lower-carbon ways to meet market demand and supporting the transition to renewable energy sources. Pieridae Energy spokeswoman Sophie Schneider said the company is considering reviving East Coast terminal plans and that its CEO, Alfred Sorensen, recently met with Deputy Prime Minister Chrystia Freeland and other energy leaders in Halifax to to discuss promoting energy security and ways for Canada to work with businesses to meet the energy needs of the country’s allies. To realize their terminal dreams, Calgary-based Pieridae and Madrid-based Repsol will have to arrange for natural gas to be shipped from Alberta via a circuitous route to the East Coast. According to Future Gas, it takes at least five years to build an LNG export terminal and it can be 10 to 20 years before investors recoup the cost, which is typically around $13 billion. Building an export terminal is about 10 times more expensive than building an LNG import terminal. This is because the gas liquefaction process is complex and requires a large amount of energy. Despite the difficult economic conditions, Volker Treier, its head of foreign trade of Germany The Chambers of Commerce and Industry said the construction of LNG export terminals on Canada’s east coast could be supported by the high prices Germany would be willing to pay for a non-Russian supply of the fuel. Natural gas importers in Germany do not currently plan to receive natural gas from Canada. Energy company EnBW, which has already committed LNG capacity at a German import terminal under construction in the city of Stade, said in a statement that additional LNG volumes would come from the US and the Middle East. An analysis by the University of Cologne’s Institute for Energy Economics shows that direct exports of LNG from Canada to Europe will be limited. “It is more cost-effective for Canada to export LNG to Asia,” said Eren Çam, head of energy commodities at the institute. This is mainly due to the export terminal already under construction in British Columbia and the fact that a pipeline will bring LNG directly to the region from Alberta, where it is produced. The most realistic way for Canada to help meet Germany’s energy needs may be some kind of energy exchange, experts say. “LNG exports from Western Canada could have an indirect impact on Europe and lower prices,” Mr. Çam said. Canada’s natural gas exports could replace US LNG exports to Asia, allowing the US to increase the volume of fuel it sends to Europe. Some policymakers in Canada and Germany, including Prime Minister Trudeau, have expressed hope that LNG export infrastructure could later be repurposed to export hydrogen fuel. However, hydrogen-capable LNG infrastructure does not exist today and building it would be a technical challenge. Unlike natural gas, hydrogen in its pure form is not suitable for shipping by ship. This is because it must be cooled to -253 degrees to turn into a liquid state. (LNG only needs to be cooled to -161 degrees.) And the energy density of hydrogen is significantly lower than that of LNG, meaning that a load of hydrogen fuel does not provide as much power as a load of gas. Because of this, the most likely way to transport hydrogen on a commercial scale is in the form of ammonia, a hydrogen derivative that only needs to be cooled to -33 degrees and has a much higher energy density than liquid hydrogen. The ammonia production process is considered simpler than natural gas liquefaction, so the cost of building ammonia export terminals should be lower than that of building LNG export terminals, according to Future Gas. But ammonia synthesis is a chemical process, while natural gas liquefaction is a physical one, so different facilities are needed. The Association of German Engineers notes that it is easier to build terminals that can export both LNG and liquid hydrogen, rather than attempt to retrofit an LNG terminal to use hydrogen. “Retrofitting at a later date is possible, but not economically viable, as too many key components would have to be replaced,” the association says on its website. Gas experts say the situation is different for LNG import terminals, which can easily be adapted for ammonia if their tanks are prepared for the switch, because the change would only require exchanging a few components, such as internal pumps and compressors. The plans for the German import terminals at Wilhelmshaven and Stade already provide for this. Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox morning or night. Sign up today.

title: “Germany Will Not Discuss Rapid Expansion Of Lng Exports During Visit To Canada Klmat” ShowToc: true date: “2022-11-03” author: “Patty Pearce”

When German Chancellor Olaf Scholz visits Canada next week to address the energy crisis plaguing his country, the prospect of a rapid expansion of Canadian liquefied natural gas exports will not be up for discussion, according to Canadian and German officials. . Instead, Mr. Scholz and his entourage are expected to focus on long-term energy goals. And they will look to bolster Canadian efforts to develop renewable energy markets, with a particular focus on hydrogen fuel. The two countries will enter into an agreement to promote the expansion of Canadian hydrogen exports. Mr. Scholz and Prime Minister Justin Trudeau will sign the agreement in Stephenville, NL, where there are plans to build a plant that will use wind power to produce the fuel. The German Federal Finance Ministry has confirmed that LNG will not be discussed in next week’s visit. However, spokeswoman Susanne Ungrad noted that the German government remains interested in Canadian LNG. “Whether there could be deliveries will have to be decided by the trading companies,” he said. The visit is not a trade mission, but will look like one. Mr Scholz will be joined by executives from Germany’s energy, environmental, chemical, automotive, shipping and mining sectors. Volkswagen CEO Herbert Diess will be among the delegation. The CEO of Siemens Energy, Christian Bruch, will do the same. The trip and deal are part of the German government’s efforts to become less dependent on Russian gas and mineral supplies by deepening energy and raw materials partnerships with other countries. Russia’s acquisition of these essential supplies has become politically fraught in recent months, as Moscow’s invasion of Ukraine has drawn international condemnation and sanctions. Recent sharp cuts in Russian gas flows to Europe have forced Germany to prepare for gas rationing. Trudeau and Scholz must face hard truths about energy security Although Germany is interested in Canadian LNG, its leadership in Berlin has little confidence that Canadian companies are able to deliver when the country needs it. And Germany’s desire for natural gas could diminish over time because the country has pledged to phase out fossil fuels by 2035. Canada currently has no operational LNG export terminals. And it has just one of them under construction: the Shell PLC-led LNG Canada project, which will transport liquefied natural gas to Asia from Kitimat, B.C. To ship the fuel to Europe, Canada would need to build terminals on its east coast, but the likelihood of them coming together quickly is low. Environment Minister Steven Guilbeault told All Nova Scotia, a media outlet in Atlantic Canada, that the federal government will not support expanding pipeline capacity from Alberta to help export LNG from the Atlantic provinces. He added that new Canadian LNG facilities cannot be built in time to meet Europe’s short-term energy needs. Charlie Grueneberg, a spokesman for Future Gas, a German association, said Canadian investor interest in building LNG export terminals on the East Coast is limited because the German government’s energy and climate policies make the country look unlikely to be a long-term buyer of natural gas. Ottawa recently rejected the idea of ​​federal funding for two private-sector proposals to export East Coast LNG to European countries: one by Pieridae Energy Ltd.’s Goldboro LNG; and one from Repsol SA’s Saint John LNG, which operates an LNG import terminal. No company has made concrete construction plans. Natural Resources Minister Jonathan Wilkinson told The Globe in June that the two proposals would have to stand on their merits and go through Canadian regulatory reviews to ensure they meet that country’s climate goals. In a statement to the Globe on Thursday, Mr. Wilkinson’s office reiterated that “any new potential project should incorporate energy transition considerations into project design, such as plans to transition to hydrogen generation and export.” In an e-mail, Repsol spokesman Mike Blackier said the company is constantly exploring options to maximize the value of its import terminal, with a particular focus on new, lower-carbon ways to meet market demand and supporting the transition to renewable energy sources. Pieridae Energy spokeswoman Sophie Schneider said the company is considering reviving East Coast terminal plans and that its CEO, Alfred Sorensen, recently met with Deputy Prime Minister Chrystia Freeland and other energy leaders in Halifax to to discuss promoting energy security and ways for Canada to work with businesses to meet the energy needs of the country’s allies. To realize their terminal dreams, Calgary-based Pieridae and Madrid-based Repsol will have to arrange for natural gas to be shipped from Alberta via a circuitous route to the East Coast. According to Future Gas, it takes at least five years to build an LNG export terminal and it can be 10 to 20 years before investors recoup the cost, which is typically around $13 billion. Building an export terminal is about 10 times more expensive than building an LNG import terminal. This is because the gas liquefaction process is complex and requires a large amount of energy. Despite the difficult economic conditions, Volker Treier, its head of foreign trade of Germany The Chambers of Commerce and Industry said the construction of LNG export terminals on Canada’s east coast could be supported by the high prices Germany would be willing to pay for a non-Russian supply of the fuel. Natural gas importers in Germany do not currently plan to receive natural gas from Canada. Energy company EnBW, which has already committed LNG capacity at a German import terminal under construction in the city of Stade, said in a statement that additional LNG volumes would come from the US and the Middle East. An analysis by the University of Cologne’s Institute for Energy Economics shows that direct exports of LNG from Canada to Europe will be limited. “It is more cost-effective for Canada to export LNG to Asia,” said Eren Çam, head of energy commodities at the institute. This is mainly due to the export terminal already under construction in British Columbia and the fact that a pipeline will bring LNG directly to the region from Alberta, where it is produced. The most realistic way for Canada to help meet Germany’s energy needs may be some kind of energy exchange, experts say. “LNG exports from Western Canada could have an indirect impact on Europe and lower prices,” Mr. Çam said. Canada’s natural gas exports could replace US LNG exports to Asia, allowing the US to increase the volume of fuel it sends to Europe. Some policymakers in Canada and Germany, including Prime Minister Trudeau, have expressed hope that LNG export infrastructure could later be repurposed to export hydrogen fuel. However, hydrogen-capable LNG infrastructure does not exist today and building it would be a technical challenge. Unlike natural gas, hydrogen in its pure form is not suitable for shipping by ship. This is because it must be cooled to -253 degrees to turn into a liquid state. (LNG only needs to be cooled to -161 degrees.) And the energy density of hydrogen is significantly lower than that of LNG, meaning that a load of hydrogen fuel does not provide as much power as a load of gas. Because of this, the most likely way to transport hydrogen on a commercial scale is in the form of ammonia, a hydrogen derivative that only needs to be cooled to -33 degrees and has a much higher energy density than liquid hydrogen. The ammonia production process is considered simpler than natural gas liquefaction, so the cost of building ammonia export terminals should be lower than that of building LNG export terminals, according to Future Gas. But ammonia synthesis is a chemical process, while natural gas liquefaction is a physical one, so different facilities are needed. The Association of German Engineers notes that it is easier to build terminals that can export both LNG and liquid hydrogen, rather than attempt to retrofit an LNG terminal to use hydrogen. “Retrofitting at a later date is possible, but not economically viable, as too many key components would have to be replaced,” the association says on its website. Gas experts say the situation is different for LNG import terminals, which can easily be adapted for ammonia if their tanks are prepared for the switch, because the change would only require exchanging a few components, such as internal pumps and compressors. The plans for the German import terminals at Wilhelmshaven and Stade already provide for this. Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox morning or night. Sign up today.

title: “Germany Will Not Discuss Rapid Expansion Of Lng Exports During Visit To Canada Klmat” ShowToc: true date: “2022-12-10” author: “Ollie Artman”

When German Chancellor Olaf Scholz visits Canada next week to address the energy crisis plaguing his country, the prospect of a rapid expansion of Canadian liquefied natural gas exports will not be up for discussion, according to Canadian and German officials. . Instead, Mr. Scholz and his entourage are expected to focus on long-term energy goals. And they will look to bolster Canadian efforts to develop renewable energy markets, with a particular focus on hydrogen fuel. The two countries will enter into an agreement to promote the expansion of Canadian hydrogen exports. Mr. Scholz and Prime Minister Justin Trudeau will sign the agreement in Stephenville, NL, where there are plans to build a plant that will use wind power to produce the fuel. The German Federal Finance Ministry has confirmed that LNG will not be discussed in next week’s visit. However, spokeswoman Susanne Ungrad noted that the German government remains interested in Canadian LNG. “Whether there could be deliveries will have to be decided by the trading companies,” he said. The visit is not a trade mission, but will look like one. Mr Scholz will be joined by executives from Germany’s energy, environmental, chemical, automotive, shipping and mining sectors. Volkswagen CEO Herbert Diess will be among the delegation. The CEO of Siemens Energy, Christian Bruch, will do the same. The trip and deal are part of the German government’s efforts to become less dependent on Russian gas and mineral supplies by deepening energy and raw materials partnerships with other countries. Russia’s acquisition of these essential supplies has become politically fraught in recent months, as Moscow’s invasion of Ukraine has drawn international condemnation and sanctions. Recent sharp cuts in Russian gas flows to Europe have forced Germany to prepare for gas rationing. Trudeau and Scholz must face hard truths about energy security Although Germany is interested in Canadian LNG, its leadership in Berlin has little confidence that Canadian companies are able to deliver when the country needs it. And Germany’s desire for natural gas could diminish over time because the country has pledged to phase out fossil fuels by 2035. Canada currently has no operational LNG export terminals. And it has just one of them under construction: the Shell PLC-led LNG Canada project, which will transport liquefied natural gas to Asia from Kitimat, B.C. To ship the fuel to Europe, Canada would need to build terminals on its east coast, but the likelihood of them coming together quickly is low. Environment Minister Steven Guilbeault told All Nova Scotia, a media outlet in Atlantic Canada, that the federal government will not support expanding pipeline capacity from Alberta to help export LNG from the Atlantic provinces. He added that new Canadian LNG facilities cannot be built in time to meet Europe’s short-term energy needs. Charlie Grueneberg, a spokesman for Future Gas, a German association, said Canadian investor interest in building LNG export terminals on the East Coast is limited because the German government’s energy and climate policies make the country look unlikely to be a long-term buyer of natural gas. Ottawa recently rejected the idea of ​​federal funding for two private-sector proposals to export East Coast LNG to European countries: one by Pieridae Energy Ltd.’s Goldboro LNG; and one from Repsol SA’s Saint John LNG, which operates an LNG import terminal. No company has made concrete construction plans. Natural Resources Minister Jonathan Wilkinson told The Globe in June that the two proposals would have to stand on their merits and go through Canadian regulatory reviews to ensure they meet that country’s climate goals. In a statement to the Globe on Thursday, Mr. Wilkinson’s office reiterated that “any new potential project should incorporate energy transition considerations into project design, such as plans to transition to hydrogen generation and export.” In an e-mail, Repsol spokesman Mike Blackier said the company is constantly exploring options to maximize the value of its import terminal, with a particular focus on new, lower-carbon ways to meet market demand and supporting the transition to renewable energy sources. Pieridae Energy spokeswoman Sophie Schneider said the company is considering reviving East Coast terminal plans and that its CEO, Alfred Sorensen, recently met with Deputy Prime Minister Chrystia Freeland and other energy leaders in Halifax to to discuss promoting energy security and ways for Canada to work with businesses to meet the energy needs of the country’s allies. To realize their terminal dreams, Calgary-based Pieridae and Madrid-based Repsol will have to arrange for natural gas to be shipped from Alberta via a circuitous route to the East Coast. According to Future Gas, it takes at least five years to build an LNG export terminal and it can be 10 to 20 years before investors recoup the cost, which is typically around $13 billion. Building an export terminal is about 10 times more expensive than building an LNG import terminal. This is because the gas liquefaction process is complex and requires a large amount of energy. Despite the difficult economic conditions, Volker Treier, its head of foreign trade of Germany The Chambers of Commerce and Industry said the construction of LNG export terminals on Canada’s east coast could be supported by the high prices Germany would be willing to pay for a non-Russian supply of the fuel. Natural gas importers in Germany do not currently plan to receive natural gas from Canada. Energy company EnBW, which has already committed LNG capacity at a German import terminal under construction in the city of Stade, said in a statement that additional LNG volumes would come from the US and the Middle East. An analysis by the University of Cologne’s Institute for Energy Economics shows that direct exports of LNG from Canada to Europe will be limited. “It is more cost-effective for Canada to export LNG to Asia,” said Eren Çam, head of energy commodities at the institute. This is mainly due to the export terminal already under construction in British Columbia and the fact that a pipeline will bring LNG directly to the region from Alberta, where it is produced. The most realistic way for Canada to help meet Germany’s energy needs may be some kind of energy exchange, experts say. “LNG exports from Western Canada could have an indirect impact on Europe and lower prices,” Mr. Çam said. Canada’s natural gas exports could replace US LNG exports to Asia, allowing the US to increase the volume of fuel it sends to Europe. Some policymakers in Canada and Germany, including Prime Minister Trudeau, have expressed hope that LNG export infrastructure could later be repurposed to export hydrogen fuel. However, hydrogen-capable LNG infrastructure does not exist today and building it would be a technical challenge. Unlike natural gas, hydrogen in its pure form is not suitable for shipping by ship. This is because it must be cooled to -253 degrees to turn into a liquid state. (LNG only needs to be cooled to -161 degrees.) And the energy density of hydrogen is significantly lower than that of LNG, meaning that a load of hydrogen fuel does not provide as much power as a load of gas. Because of this, the most likely way to transport hydrogen on a commercial scale is in the form of ammonia, a hydrogen derivative that only needs to be cooled to -33 degrees and has a much higher energy density than liquid hydrogen. The ammonia production process is considered simpler than natural gas liquefaction, so the cost of building ammonia export terminals should be lower than that of building LNG export terminals, according to Future Gas. But ammonia synthesis is a chemical process, while natural gas liquefaction is a physical one, so different facilities are needed. The Association of German Engineers notes that it is easier to build terminals that can export both LNG and liquid hydrogen, rather than attempt to retrofit an LNG terminal to use hydrogen. “Retrofitting at a later date is possible, but not economically viable, as too many key components would have to be replaced,” the association says on its website. Gas experts say the situation is different for LNG import terminals, which can easily be adapted for ammonia if their tanks are prepared for the switch, because the change would only require exchanging a few components, such as internal pumps and compressors. The plans for the German import terminals at Wilhelmshaven and Stade already provide for this. Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox morning or night. Sign up today.

title: “Germany Will Not Discuss Rapid Expansion Of Lng Exports During Visit To Canada Klmat” ShowToc: true date: “2022-11-16” author: “Gwen Bento”

When German Chancellor Olaf Scholz visits Canada next week to address the energy crisis plaguing his country, the prospect of a rapid expansion of Canadian liquefied natural gas exports will not be up for discussion, according to Canadian and German officials. . Instead, Mr. Scholz and his entourage are expected to focus on long-term energy goals. And they will look to bolster Canadian efforts to develop renewable energy markets, with a particular focus on hydrogen fuel. The two countries will enter into an agreement to promote the expansion of Canadian hydrogen exports. Mr. Scholz and Prime Minister Justin Trudeau will sign the agreement in Stephenville, NL, where there are plans to build a plant that will use wind power to produce the fuel. The German Federal Finance Ministry has confirmed that LNG will not be discussed in next week’s visit. However, spokeswoman Susanne Ungrad noted that the German government remains interested in Canadian LNG. “Whether there could be deliveries will have to be decided by the trading companies,” he said. The visit is not a trade mission, but will look like one. Mr Scholz will be joined by executives from Germany’s energy, environmental, chemical, automotive, shipping and mining sectors. Volkswagen CEO Herbert Diess will be among the delegation. The CEO of Siemens Energy, Christian Bruch, will do the same. The trip and deal are part of the German government’s efforts to become less dependent on Russian gas and mineral supplies by deepening energy and raw materials partnerships with other countries. Russia’s acquisition of these essential supplies has become politically fraught in recent months, as Moscow’s invasion of Ukraine has drawn international condemnation and sanctions. Recent sharp cuts in Russian gas flows to Europe have forced Germany to prepare for gas rationing. Trudeau and Scholz must face hard truths about energy security Although Germany is interested in Canadian LNG, its leadership in Berlin has little confidence that Canadian companies are able to deliver when the country needs it. And Germany’s desire for natural gas could diminish over time because the country has pledged to phase out fossil fuels by 2035. Canada currently has no operational LNG export terminals. And it has just one of them under construction: the Shell PLC-led LNG Canada project, which will transport liquefied natural gas to Asia from Kitimat, B.C. To ship the fuel to Europe, Canada would need to build terminals on its east coast, but the likelihood of them coming together quickly is low. Environment Minister Steven Guilbeault told All Nova Scotia, a media outlet in Atlantic Canada, that the federal government will not support expanding pipeline capacity from Alberta to help export LNG from the Atlantic provinces. He added that new Canadian LNG facilities cannot be built in time to meet Europe’s short-term energy needs. Charlie Grueneberg, a spokesman for Future Gas, a German association, said Canadian investor interest in building LNG export terminals on the East Coast is limited because the German government’s energy and climate policies make the country look unlikely to be a long-term buyer of natural gas. Ottawa recently rejected the idea of ​​federal funding for two private-sector proposals to export East Coast LNG to European countries: one by Pieridae Energy Ltd.’s Goldboro LNG; and one from Repsol SA’s Saint John LNG, which operates an LNG import terminal. No company has made concrete construction plans. Natural Resources Minister Jonathan Wilkinson told The Globe in June that the two proposals would have to stand on their merits and go through Canadian regulatory reviews to ensure they meet that country’s climate goals. In a statement to the Globe on Thursday, Mr. Wilkinson’s office reiterated that “any new potential project should incorporate energy transition considerations into project design, such as plans to transition to hydrogen generation and export.” In an e-mail, Repsol spokesman Mike Blackier said the company is constantly exploring options to maximize the value of its import terminal, with a particular focus on new, lower-carbon ways to meet market demand and supporting the transition to renewable energy sources. Pieridae Energy spokeswoman Sophie Schneider said the company is considering reviving East Coast terminal plans and that its CEO, Alfred Sorensen, recently met with Deputy Prime Minister Chrystia Freeland and other energy leaders in Halifax to to discuss promoting energy security and ways for Canada to work with businesses to meet the energy needs of the country’s allies. To realize their terminal dreams, Calgary-based Pieridae and Madrid-based Repsol will have to arrange for natural gas to be shipped from Alberta via a circuitous route to the East Coast. According to Future Gas, it takes at least five years to build an LNG export terminal and it can be 10 to 20 years before investors recoup the cost, which is typically around $13 billion. Building an export terminal is about 10 times more expensive than building an LNG import terminal. This is because the gas liquefaction process is complex and requires a large amount of energy. Despite the difficult economic conditions, Volker Treier, its head of foreign trade of Germany The Chambers of Commerce and Industry said the construction of LNG export terminals on Canada’s east coast could be supported by the high prices Germany would be willing to pay for a non-Russian supply of the fuel. Natural gas importers in Germany do not currently plan to receive natural gas from Canada. Energy company EnBW, which has already committed LNG capacity at a German import terminal under construction in the city of Stade, said in a statement that additional LNG volumes would come from the US and the Middle East. An analysis by the University of Cologne’s Institute for Energy Economics shows that direct exports of LNG from Canada to Europe will be limited. “It is more cost-effective for Canada to export LNG to Asia,” said Eren Çam, head of energy commodities at the institute. This is mainly due to the export terminal already under construction in British Columbia and the fact that a pipeline will bring LNG directly to the region from Alberta, where it is produced. The most realistic way for Canada to help meet Germany’s energy needs may be some kind of energy exchange, experts say. “LNG exports from Western Canada could have an indirect impact on Europe and lower prices,” Mr. Çam said. Canada’s natural gas exports could replace US LNG exports to Asia, allowing the US to increase the volume of fuel it sends to Europe. Some policymakers in Canada and Germany, including Prime Minister Trudeau, have expressed hope that LNG export infrastructure could later be repurposed to export hydrogen fuel. However, hydrogen-capable LNG infrastructure does not exist today and building it would be a technical challenge. Unlike natural gas, hydrogen in its pure form is not suitable for shipping by ship. This is because it must be cooled to -253 degrees to turn into a liquid state. (LNG only needs to be cooled to -161 degrees.) And the energy density of hydrogen is significantly lower than that of LNG, meaning that a load of hydrogen fuel does not provide as much power as a load of gas. Because of this, the most likely way to transport hydrogen on a commercial scale is in the form of ammonia, a hydrogen derivative that only needs to be cooled to -33 degrees and has a much higher energy density than liquid hydrogen. The ammonia production process is considered simpler than natural gas liquefaction, so the cost of building ammonia export terminals should be lower than that of building LNG export terminals, according to Future Gas. But ammonia synthesis is a chemical process, while natural gas liquefaction is a physical one, so different facilities are needed. The Association of German Engineers notes that it is easier to build terminals that can export both LNG and liquid hydrogen, rather than attempt to retrofit an LNG terminal to use hydrogen. “Retrofitting at a later date is possible, but not economically viable, as too many key components would have to be replaced,” the association says on its website. Gas experts say the situation is different for LNG import terminals, which can easily be adapted for ammonia if their tanks are prepared for the switch, because the change would only require exchanging a few components, such as internal pumps and compressors. The plans for the German import terminals at Wilhelmshaven and Stade already provide for this. Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox morning or night. Sign up today.