Germany Warns Canada of Shrinking Demand for Natural Gas in Europe
Germany has cautioned Canada that Europe’s demand for natural gas will decline in the near future. Jennifer Morgan, Germany’s State Secretary and Special Envoy for International Climate Action, emphasized that the country’s focus is on renewable energy, and natural gas will play a decreasing role.
Speaking at a press briefing in Ottawa, Morgan stated, “All studies show that the market is going to shrink. Germany will be driving forward on renewables, and gas demand will decline.” She further explained that Germany is working towards a net-zero target by 2045 and expects to reduce natural gas imports by 30% by 2030 and 96% by 2050.
Germany’s shift away from natural gas is largely a response to the war in Ukraine, which disrupted energy imports from Russia. Prior to the conflict, Russia supplied more than 40% of Europe’s natural gas. That share has dropped significantly, and countries like Norway and the U.S. have filled the gap.
Despite this warning, Germany still sees value in Canada’s green energy sector, particularly hydrogen. The two nations have committed to a $600 million hydrogen export deal, further strengthening their cooperation in clean energy.
Canada’s Conservative Party, however, remains committed to expanding natural gas exports. Conservative leader Pierre Poilievre criticized Prime Minister Justin Trudeau’s stance, advocating for increased LNG exports to Europe. Poilievre emphasized that such exports would help European nations reduce their reliance on Russian gas.
As Canada remains a significant player in the global natural gas market, future projects in British Columbia, such as LNG Canada and Woodfibre LNG, are expected to open up new export opportunities, especially to Asia.