Energy markets are changing, Canada is coming

The UK is the worst at the moment. Due to the abnormal increase in oil and gas prices in the country, it is feared that many people will fall under the grip of fuel poverty. The situation will worsen next winter. Then the annual fuel cost of the family in that country can stand at 4 thousand pounds. In this situation, the low income people of the country are suffering.

Now it is being talked about, can Europe continue without Russia's gas? It seems impossible to answer this question in one word. Because, needless to say, Europe is not possible without creating alternative sources. But those who travel around the world in various ways, without thinking, decide not to buy Russian gas, this is probably not right either.

In this reality, European countries are turning to LNG or liquefied natural gas. So naturally the price of LNG is increasing. Besides, the demand for LNG in the local market of the Middle East will increase in the next few years. For this reason, huge investments are being made to increase the production of natural gas in the Middle East, the world's top region for extracting fuel oil.

Qatar is the Middle East leader in the LNG export market. Compared to that, other countries rich in energy resources in the region were far behind in the gas market. Now that scenario is changing. Saudi Arabia and the United Arab Emirates, the two most influential members of the OPEC alliance, have undertaken major projects to increase gas production. On the other hand, Oman, a member of the OPEC Plus alliance, is exploring new gas fields and trying to increase production in older gas fields. This effort to increase investment comes from plans to increase exports.

The European Union is looking for alternative sources of gas to reduce dependence on Russian energy. As part of this, gas traders in the region are desperate to find adequate sources of LNG, or liquefied natural gas, before next summer. Europe's frenzy to find Russian alternatives to LNG carriers, experts say, does not appear to be ending anytime soon. It takes years to build a new LNG carrier. Also, no one realized that within a few months Europe would suddenly become the largest buyer of US liquefied gas. So the gap between global energy demand and supply, which has already emerged, is likely to deepen in the near future.

The rise of Canada

Canada is one of the top six natural gas producing countries in the world. Not Russia at the top, but the US. Russia is in second place. However, it is easier to get European gas from Russia due to geographical proximity and history. But Canada's name is also coming to the fore in this changing reality of war. They are now ready to cooperate with strategic allies in Europe. Canadian Prime Minister Justin Trudeau himself told Al-Jazeera that Canada is in talks with Germany about LNG exports. 

But the task is not so simple, Justin Trudeau knows. Initially, the investment will have to be made in the construction of LNG infrastructure. There are many problems. The problem is that in order to export LNG to Germany, a factory has to be built on the east coast. And our gas plant is in Western Canada.

But Justin Trudeau does not think the task is impossible. All we can do right now is release our gas into the world market so Germany and Europe can find it," he said. It is from other sources.

In addition to gas, the Canadian province of Alberta produces large amounts of oil. Earlier this year they called for increased oil and gas production to help Europe. Now they are practically walking on that path. Europe wants to overcome its dependence on Russian power, mainly dependent on Canada and the Middle East.

Germany, on the other hand, is trying to diversify energy Recently, German Chancellor Olaf Scholz signed an agreement with Canadian Prime Minister Justin Trudeau. Germany to buy green hydrogen from Canada Schultz and Justin Trudeau say Germany also wants to buy liquefied natural gas (LNG) from Canada.