By Laura Dhillon Kane
Aug 26, 2025 (Bloomberg) –Canada is set to begin discussions on supplying liquefied natural gas to German buyers to tap into growing demand across the European Union.
LNG was one of the issues on the table in talks between Prime Minister Mark Carney and German Chancellor Friedrich Merz on Tuesday in Berlin. The two leaders also discussed a critical minerals partnership, and Carney revealed that a German firm is one of two top bidders for a lucrative submarine contract.
Canada and Germany have an energy partnership that allows for deeper collaboration on LNG, Carney’s government said in a news release. The two NATO allies plan to cooperate on developing a transatlantic hydrogen trade corridor, it added.
The prime minister said he sees an opportunity over the medium term to ship both LNG and hydrogen, and that his government will support billions of dollars’ worth of infrastructure investments to boost exports. The first, to be announced in the next two weeks, will be related to ports, he said.
The expansion of ports in Montreal and in Churchill, Manitoba, as well as others on the east coast, would open up “enormous” potential to ship LNG and minerals, Carney suggested. “It’s the No. 1 focus of this government to build that infrastructure — and particularly infrastructure that helps us deepen our partnership with our European partners.”
There are no current, publicly known projects to ship LNG from eastern Canada to Europe that are close to being commercially ready. Two years ago, Spain’s Repsol SA abandoned the idea of expanding a liquefied natural gas terminal on Canada’s east coast, saying the cost of shipping gas there was too high.
But Carney’s government is bullish on the idea.
Canadian officials heard repeatedly from Germany and across the EU that there was demand for LNG during the previous government led by Prime Minister Justin Trudeau, according to an official from the administration in Ottawa.
But the government’s position at that time was only supportive of LNG exports off the west coast, said the official, who asked not to be identified discussing confidential information.
Read More: Canada Eyes Arctic Ocean Port to Ship Gas, Commodities to Europe
There are several entities looking at shipping LNG to the east, including through a port in Churchill, the official said, adding that some of those potential proponents joined meetings held by Canadian government officials in Berlin.
Energy Minister Tim Hodgson said he has heard from proponents that their goal is to be able to ship LNG to Europe within five years. “Germany sees natural gas as a transition fuel,” he said in Berlin. “Canada has the opportunity to be a great partner to Germany.”
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