Spanish power firm Repsol says it will not be increasing its Saint John LNG terminal to export liquefied pure gasoline to Europe as a result of the related prices make the undertaking unviable.

Europe confronted a severe provide crunch final yr because it weaned itself off Russian oil and gasoline following Moscow’s unprovoked invasion of Ukraine.

As they scrambled to interchange Russian gasoline, Germany and different EU members turned to Canada as a doable resolution to their provide woes.

Repsol’s present import terminal in Saint John, New Brunswick was thought-about as an choice to export pure gasoline throughout the Atlantic.

However as Bloomberg Information first reported, the corporate considers the undertaking too pricey. Firm spokesperson Michael Blackier instructed CBC Information that Repsol performed a viability examine on the undertaking.

“The general prices to ship the gasoline to our terminal are too excessive,” Blackier mentioned in an e mail to CBC.

U.S. LNG exporters boosted shipments to Europe by greater than 137 per cent within the first 11 months of 2022 — a rise that has resulted in tens of billions of {dollars} in new income, based on U.S. Vitality Info Administration (EIA) information.

Throughout his go to to Canada final summer time, German Chancellor Olaf Scholz mentioned he was open to the thought of accepting extra gasoline from Canada however added the nation lacks infrastructure and a confirmed enterprise case to spice up exports throughout the Atlantic.

Over the previous decade, companies have pitched 13 LNG export terminals for Canada’s West Coast and 5 for the East Coast.

These tasks have failed for a wide range of causes.

European Fee President Ursula von der Leyen poured chilly water on the thought of Canada exporting extra pure gasoline to Europe throughout her current go to.

Each Scholz and von der Leyen have mentioned they’re enthusiastic about shopping for clear hydrogen power from Canada. 

“We’ll proceed to assist our European associates and allies as they speed up their clear power transition and get rid of their dependence on Russian power,” a spokesperson for Pure Useful resource Minister Jonathan Wilkinson’s workplace instructed CBC in an e mail.

“Within the case of [Saint] John LNG, the undertaking proponent has knowledgeable us that their analysis concludes there isn’t any enterprise case, as the price of transporting gasoline throughout the numerous distances [is] too excessive to assist undertaking economics.”

The New Brunswick authorities hoped an growth of the Saint John terminal may present a rationale for ending the moratorium on shale gasoline growth in New Brunswick.

Gasoline from New Brunswick is a “doable resolution” for Europe, Premier Blaine Higgs mentioned final spring, including that it will be cheaper than gasoline shipped to a Saint John terminal over lengthy distances through pipelines.

CBC reached out to the New Brunswick authorities for response however did not obtain a response by publication time.