Meeting during G7 summit in Bavaria, Scholz and Trudeau discussed how to maintain pressure on President Vladimir Putin and cut reliance on Russian gas.
Scholz’s government last week warned that recent Russian moves to slash Europe’s gas supplies risked sparking a collapse in energy markets.
Canada is among the world’s largest producers of natural gas but it lacks export infrastructure on its eastern coast. Building a new LNG terminal could take a decade to get through the regulatory process and would likely face fierce opposition from environmental groups.
However, there is an import terminal owned by Spanish firm Repsol SA that could be converted to an export terminal relatively quickly. If the company decides to proceed, Canada’s Natural Resources Minister Jonathan Wilkinson has said the terminal could start shipping gas in three to four years.
Another concern for both countries is that signing up to a long-term deal on natural gas could compromise their commitments to transition away from fossil fuels. Canada has said it would require any new LNG terminal to be low-emission and be capable of exporting hydrogen in the future.
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