26.06.2022, Bayern, Elmau: Justin Trudeau (l-r), Premierminister von Kanada, wird von Bundeskanzler Olaf Scholz (SPD) und Britta Ernst, Frau von Bundeskanzler Scholz, zum G7-Gipfel auf Schloss Elmau begrüßt. Deutschland ist Gastgeber des G7-Gipfels wirtschaftsstarker Demokratien vom 26. bis 28. Juni 2022. Am ersten Gipfeltag wird die weltwirtschaftliche Lage, der Klimaschutz und die Außen- und Sicherheitspolitik mit den Sanktionen gegen Russland beraten. Foto: Philipp von Ditfurth/dpa +++ dpa-Bildfunk +++

In the past, visits by German chancellors to Canada were mostly feel-good events to strengthen the much-vaunted community of values ​​between the two countries, but things are different now. Chancellor Olaf Scholz and Economics Minister Robert Habeck see the country, which is rich in raw materials and energy, as an important partner in energy and climate policy in the long term. The talks with Prime Minister Justin Trudeau and with business associations and research institutes will focus on expanding cooperation in the hydrogen economy, in liquid gas and critical minerals and metals.

“This trip as a whole makes our closeness to Canada clear,” says German government spokesman Steffen Hebestreit. The German delegation, which also includes business representatives, will arrive in Montreal on Sunday evening. Canada’s Prime Minister Trudeau will accompany his German colleague on the two-day trip. The program in Montreal and Toronto includes meetings with Canadian business representatives, a visit to an institute for artificial intelligence and a speech by the Chancellor at a German-Canadian business conference. A hydrogen agreement between Germany and Canada is to be signed in Newfoundland.

The Ukraine war and cutbacks in natural gas supplies from Russia have made energy security a top issue in bilateral relations. In Canada, too, debate is raging on how to help Europe in its efforts to end dependence on Russian sources. Chancellor Scholz and Prime Minister Trudeau recently discussed this at the G7 summit at Schloss Elmau in Germany. Scholz welcomed the fact that Canada allowed the delivery of a gas turbine for the Nord Stream 1 pipeline, which was serviced in a Siemens plant in Montreal. At home, Trudeau received strong criticism for this decision, with which Canada undermined its sanctions against Russia.

However, short-term energy aid from Canada is not in sight. With its enormous natural gas resources, which the Canadian Gas Association states at 39 trillion cubic meters, and annual production of 170 billion cubic meters, Canada is one of the largest natural gas producers. But only on the west coast is a terminal for exports to Asia about to be completed. Canada has no terminals on its east coast to export liquefied natural gas (LNG) to Europe. A terminal of the Spanish group Repsol in Saint John in New Brunswick can only be used for imports so far. However, consideration is being given to converting the terminal in Saint John so that it can also be used for exports. For this, however, feasibility studies must first be drawn up and the approval processes under Canadian law must be completed, and there are also missing pipelines. Thus, Saint John can only help in the medium term.

But Canada is already indirectly supporting the Europeans. Canada exports natural gas to the US, which in turn has significantly increased its exports to Europe. Every Canadian gas shipment to global markets helps ease the tension in the energy sector, said Timothy Egan, president of the Canadian Gas Association. This could also happen through increased gas supplies to the US, which would enable the US to send more to Europe. Egan knows that Germany only wants to use liquefied natural gas for a transitional period and will rely on hydrogen as an energy source in the long term. But he doesn’t think that’s a barrier to investment in LNG terminals on Canada’s east coast. “Even if it’s only for 20 years, this project has a purpose,” says Egan. Even if Germany manages to phase out fossil fuels within the planned period, there are other European countries that do not have this goal. It is therefore interesting for Canada to also have export opportunities on the east coast. What is important, however, is a “clear political commitment” on both sides to energy cooperation and LNG exports to Europe. The chancellor’s visit is a positive sign that Canada is now also an important partner in energy policy for the Europeans.