German utility Uniper SE says a 20-year supply contract with Canada’s Goldboro LNG for liquefied natural gas deliveries originally scheduled to start in 2025 “no longer plays a significant role” in its plans – more evidence that Canadian LNG exports are not the table will be realized in Germany’s short-term quest for energy security. Uniper spokesman Lucas Wintgens said the Goldboro project in Nova Scotia – one of two proposed LNG export facilities on Canada’s east coast – remains in the planning stages but has not been funded by Goldboro’s owner, Pieridae Energy Ltd., last year. “The LNG supply contract with Goldboro for five million tons [a year] of LNG is still in place, but in this context it no longer plays an important role in Uniper’s plans,” said Mr Wintgens. The actual status of the supply contract has not been previously disclosed by Pieridae or Uniper. Pieridae spokeswoman Sophie Schneider said her company had “adjusted its strategy to focus on building the upstream side of the business. There are no updates on the selection of an Eastern Canada-based LNG project, including the contract with Uniper, at this time.” The German Federal Finance Ministry told The Globe and Mail this week that short-term LNG exports will not be discussed during Chancellor Olaf Scholz’s visit to Canada next week. Even if approved and implemented quickly, LNG shipments from Canada will not reach Germany within the next two years, as terminal construction takes at least five years, according to German gas association Future Gas. Germany will not discuss rapid expansion of LNG exports during visit to Canada Mr. Scholz’s trip is 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. Prime Minister Justin Trudeau said Friday there was little Canada could do to help Germany weather the coming winter and that the focus during Chancellor Scholtz’s visit next week would be on a longer-term “pivot” away from oil and natural gas. “Investing in hydrogen, investing in critical minerals, investing in different approaches like reinvesting in nuclear – these are things that will get us to where we need to be and these are things that we’re looking at broadly and working closely with partners like Germany,” Mr. Trudeau said. Additionally, Natural Resources Minister Jonathan Wilkinson told The Globe Friday that he doesn’t want to “pass up the opportunity for LNG” on Canada’s east coast. “What Canada’s contribution to LNG can certainly do more comprehensively is to get [the Shell PLC-led LNG Canada project in Kitimat, B.C.] on stream, which is five times bigger than the plans we’re talking about on the east coast,” Mr Wilkinson said. Mr. Wilkinson plans to talk about the economic prospects of LNG export terminals with German Finance Minister Robert Habeck and supporters in Canada at some point in the future. “Ultimately we would like to get to a point relatively quickly about whether the financials of this project are strong enough that it makes sense to spend a lot more time,” Mr Wilkinson said. The Saint John LNG terminal in New Brunswick, owned by Spain’s Repsol SA, also proposes to export LNG from Canada’s east coast. Mr. Wilkinson told The Globe in July that the New Brunswick and Nova Scotia projects would both have to proceed without federal funding. In principle, Canadian LNG supplies such as those from the proposed Goldboro facility in Nova Scotia would be of great interest to Uniper. “This is not least because Canada has a short transportation distance to the Northwest European market compared to other supplier countries,” Uniper’s Mr. Wintgens said. Germany’s Uniper is among the companies hardest hit by the Russian invasion of Ukraine. The utility reported a loss of more than 12.4 billion euros in the first six months of this year. Just over half of this, €6.5 billion, was related to the expected future impact of limited gas supplies from Russia. The proposed Nord Stream 2 natural gas pipeline, in which Uniper has a significant stake, was not commissioned, creating further losses. On Friday, Russian gas company Gazprom announced a three-day shutdown of the entire Nord Stream 1 gas pipeline starting at the end of August. Due to “a series of routine maintenance works”, natural gas will not flow in Germany from August 31 to September 2, the company said. Natural gas deliveries from Russia have already fallen sharply to 20% of capacity since June. During the three days, the only working turbine at the Portovaya compressor station in Russia must be checked and repaired, Gazprom said. This will be done in collaboration with experts from Siemens Energy AG. Siemens had no comment on Gazprom’s announcement when asked, the German News Agency reported. With a file by Adam Radwanski Your time is valuable. Deliver the Top Business Headlines newsletter to your inbox morning or night. Sign up today.
