Uncertain demand clouds future of Canada's planned LNG exports, experts say
BNN Bloomberg
Canadian liquefied natural gas projects looking to fill gaps in the global market left by the absence of Russian gas may run into more challenging conditions than expected, industry experts have told a global conference in Vancouver.
They said the consensus among economists is that the gas shortage in Europe caused by the war in Ukraine is unlikely to last beyond 10 years, while the rise of renewables will cut into demand from 2030 onward.
Peter Abdo, chief commercial officer for LNG for German energy giant Uniper, told the LNG 2023 conference his company is committed to entering into 10-year contracts with potential suppliers — but longer-term deals will be more challenging because of Europe's uncertain long-term demand for natural gas.
"I guess the caveat is, if any European player is entering into a long-term contract irrespective of the portfolio benefits, let's just make sure that we have enough flexibility in that deal to where we can take it to Asia or some other market, in case we're faced with a situation like stranded gas," Abdo said.
