Why Supplying Europe With LNG Has a Best-Before Date
Iran War Triples Logistics Costs for Oil Services Firms With over two decades of journalistic experience working in newspapers, trade publications and as a mining reporter, Andrew Topf is a seasoned writer specializing in… Canada’s proposed associate membership with the European Union is a first-of-its-kind political and economic partnership announced by Prime Minister Mark Carney and EU leaders during the October 2026 Canada-EU Summit in Montreal.
The arrangement creates a multi-layered tie that goes well beyond a standard free-trade agreement (like CETA), while stopping short of full EU membership.
The push is driven largely by a need to reduce economic and strategic reliance on the United States amid ongoing trade tensions, tariff disputes, and political rhetoric by the US President.
Canada has been actively courting the EU for more trade after US President Trump clashed with the trading bloc over several issues.
For example, Trump criticized the EU for trade deficits and restrictions on US exports such as farm products and cars, threatening 25% tariffs on European goods and auto imports while accusing the bloc of being designed to disadvantage the US economy.
He vowed to launch a trade investigation and slap fresh tariffs on the EU after European regulators fined major American technology companies like Google, Apple, Meta and Amazon, stating the US is not a "piggybank" for Europe.
And he threatened tariffs on European countries (including the UK, Denmark and others) over disputes surrounding the potential acquisition of Greenland, drawing strong pushback from European leaders who labeled the move as blackmail.
After the European Commission invited Canada to become the bloc's first associate member, Trump calling the idea “laughable” and a potentially hostile move that could result in more US tariffs on Europe or even a halt to trade.
But Prime Minister Carney wasn’t laughing when he agreed during the EU-Canada summit in Montreal to carry out a joint long-term feasibility study to assess market conditions, infrastructure needs, and potential long-term supplies of Canadian LNG to the European market.Related: IEA Warns Global Gas Crunch Could Last Well into 2027 Earlier this year, Canada secured its first-ever European LNG supply deal when British Columbia's Ksi Lisims LNG project signed an agreement with Germany's SEFE (Securing Energy for Europe).
Under this 20-year contract, SEFE will purchase 1 million tonnes per annum of Canadian LNG, with deliveries expected to begin in the early 2030s.
Canadian LNG exports seem like an ideal economic tool to help forge a new trans-Atlantic alliance, given that Canada is rich in energy resources and the EU is not.
For decades the bloc relied on Russian gas to keep the lights on, homes warm and industries humming.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment