Post by @AndrewHenry@mastodon.energy

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Nine of the project’s 12 mtpa of capacity are already pre-sold or earmarked, mostly for European oil majors and utilities. Uniper and SEFE of Germany have signed deals of up to 20 years; Uniper expects first deliveries from 2032, and SEFE’s are due “by the early 2030s”.
European buyers ≠ European deliveries

For a Pacific-coast plant, Asia is the obvious destination. European buyers can sell Canadian cargoes there and buy or swap US Gulf Coast cargoes to meet their commitments at home. This portfolio optimisation is both economically rational and the most likely outcome under the economics examined here, whether the politicians jetting off to Montreal acknowledge it or not.

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#Canada #Energy #climate
https://www.energyflux.news/the-maple-leafed-mirage/

💥 Energy Flux 💥

Canadian LNG: the maple-leafed mirage

EU leaders worry about growing dependence on US LNG, and Canada offers an alternative. But European utilities buying Canadian LNG will likely send it to Asia while US gas supplies Europe. That arrangement has value, but needs an honest political sales pitch.

#energy #canada #climate

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Amgine

@Amgine@mamot.fr 2 hr. ago

@AndrewHenry

One issue with the article: it does not consider the NW Passage route to Europe. 2027-2028 will likely show a 4 month passage time frame, and possibly more. Distance is up to 40% less, without Panama Canal fees, and no tariff on the NWP, unlike NEP/NSR.

FreightAmigo currently projects ice-free passage by 2040 (earliest.)

The contracts already signed are 20 years.

Andrew Henry

@AndrewHenry@mastodon.energy 1 hr. ago

@Amgine

Thank goodness our burning of methane has made LNG tanker shipments through the Arctic possible.

Amgine

@Amgine@mamot.fr 1 hr. ago

@AndrewHenry

Well, from my pov, it is foolish to assume LNG shipments will continue to Asia, where China is in active war against fossil fuel consumption. All this infrastructure is being constructed by their opposition in Europe, North America.

Hopefully smart money will continue to shift as reality shows up in the spread sheets. Better if they would look at the world directly, but I will support financial justifications if nothing else works.

Andrew Henry

@AndrewHenry@mastodon.energy 1 hr. ago

@Amgine

Europe, if it was acting rationally, would be moving as aggressively as China is in decarbonizing.

Being so dependent on energy imports has only hurt Europe.