LNG Project Outlook in Canada amid Gas Crisis in Europe
The sharp rise in gas prices in 2021 driven by increased demand in the Asia-Pacific region caused a shortage of LNG supplies to Europe. It resulted in the energy crisis in Europe. Moreover, the imports of pipeline gas from North Africa and the Caspian region could not compensate for Russian gas supplies at the pre-covid level. Canada is currently represented by only one project on the east coast. The heterogeneous nature of contracts, high cost of infrastructure and dependence on price fluctuations mean that the opportunity window for new entrants does not have a permanent basis. Canada being a fringe player in the global competitive market faces rivals that are already landing contracts, realizing their competitive edge due to earlier entrance and lower mining costs.