EU and Canada explore LNG deal as Europe grapples with gas crisis
A draft EU-Canada summit statement envisages a feasibility study on long-term LNG exports to Europe as Brussels seeks to diversify its energy supplies. But questions remain over infrastructure, costs and the impact on the bloc's climate ambitions.
Published on 28 October 2026 - 15:57 GMT+1
The EU and Canada will explore long-term exports of liquefied natural gas (LNG) to Europe as the bloc grapples with soaring gas prices and historically low storage levels, according to a draft joint statement for the EU-Canada summit in Montreal on October 29–30, seen by Euronews.
The two sides plan to conduct a feasibility study on LNG exports to Europe, alongside closer cooperation on electricity grids, battery storage and the physical and cyber protection of energy infrastructure.
"We will assess opportunities for long-term energy connectivity, investment and offtake arrangements that contribute to European energy security and Canadian economic development while supporting our shared climate objectives," the draft says.
The initiative reflects Brussels' efforts to diversify its energy supplies and reduce strategic vulnerabilities amid mounting geopolitical tensions.
Since Russia's full-scale invasion of Ukraine, the US has become the EU's largest LNG supplier, replacing much of the cheaper gas previously imported from Russia.
At the same time, continued disruption in production and shipping of Qatari gas has also dented the EU's energy supply security.
However, the draft leaves unanswered key questions about how much LNG Canada could supply, at what cost and what infrastructure would be needed to deliver it to European markets.
Canadian Prime Minister Mark Carney has backed plans that could double LNG export capacity on Canada's west coast, with Ottawa presenting itself as a reliable supplier for countries seeking to diversify their energy sources.
Carney has also signalled openness to developing gas exports from New Brunswick if the province reverses its fracking ban and establishes a domestic production industry.
“We will change things at the federal level that need to be changed in order for projects to move forward,” Carney told local media in May 2025.
Additional supplies from politically stable producers could improve the EU's energy security while Brussels seeks to reduce its dependence on Russian fossil fuels and is dealing with an unpredictable US administration. However, Asian markets are also potential destinations for Canadian LNG.
Nonetheless, greater availability of gas does not translate into a faster energy transition.
New LNG terminals and pipelines require substantial investment and can operate for decades. Environmentalists argue they encourage long-term gas consumption or divert capital from electrification and renewable energy, potentially slowing the transition away from fossil fuels.
Esther Bollendorff, fossil-free programme manager at the NGO Climate Action Network (CAN) Europe, said Canada shouldn’t become the EU’s next gas supplier, but a partner in building an affordable and resilient energy future.
She said the proposed feasibility study on LNG exports to the EU is a "dangerous distraction" from renewables-based electrification and energy efficiency.
"It risks locking in fossil fuel infrastructure, stranded assets and higher bills for consumers on both sides of the Atlantic, while undermining Europe’s climate goals," Bollendorff said.
Environmental campaigners warn that expanding fossil fuel supply could influence the choices available to importing countries, potentially making continued gas consumption more attractive than investing in alternatives.
