As Pierre Poilievre heads to London and Berlin for his first actual foreign trips as opposition leader, his office released his itinerary, which includes attending a CANZUK reception in London after meeting with parliamentarians and business leaders, and then delivering a keynotes speech in Berlin, along with meeting with officials and business leaders and touring an LNG facility.
And there’s the rub. This is going to turn into another tedious exercise of Poilievre doing a little song and dance about “Look! Europe wants our oil and gas!” when really, European leaders, after much badgering and hectoring, actually said something like “Sure, we’d like it if it was available and the right price,” neither of which is going to happen. We’ve seen this before. Certain political show hosts in our country like to engage in this very same badgering and hectoring whenever they interview a visiting European leader in order to say “Look! There’s a business case! Trudeau was wrong!” But they ignored the caveats and the economics.
The reason why LNG to Europe is never going to happen include:
- There is no local supply of natural gas on the east coast, so most of the feed stock would be imported from the US, raising prices locally, and if you think a cross-country pipeline is feasible, that will also increase prices in the east coast;
- It would take years to build an export facility, and it would take years to convert the one existing import terminal (which serves not only the local market, but also feeds into the northeastern US market);
- Even if these facilities existed, there has been no interest by European buyers in signing a long-term contract, which is one of the reasons why proposals for east coast LNG terminals never got off the ground. Also remember that these facilities essentially need to operate for a good thirty or forty years to make their money’s worth, and Europe is already rapidly decarbonizing.
Of course, Poilievre will ignore all of that, and declare that Europe wants our LNG, and we’ll go through this whole exercise yet again. It’s so tiresome that nobody actually wants to listen to reality on this subject.
Ukraine Dispatch
Russia says a temporary ceasefire has been reached around the Zaporizhzhia nuclear plant in order to ensure repairs. Ukraine is setting up a joint venture with allies to produce more air defence ammunition.
https://twitter.com/KyivIndependent/status/2027352819905249375