Energy East, a proposed pipeline that was killed in 2017, could have helped transport billions in Canadian energy products to many more markets, reducing the country’s dependence on the U.S., a think tank reports.
The report, published by MEI, suggests the proposal, had it been completed on schedule in 2021, could have diverted 27.7 per cent of Canadian oil exports to Europe – worth an estimated $36.7 billion per year.
“Canada’s high level of dependence on U.S. trade is not unavoidable,” said Gabriel Giguère, senior policy analyst and author of the report in a release.
“It is the direct result of years of policy decisions that have delayed or actively impeded major infrastructure projects.”
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In addition, GNL Québec’s Énergie Saguenay Project would have diverted 19.4 per cent of Canadian gas exports to Europe, an estimated $1.7 billion per year.
That project was initially announced in 2015 and would involve a natural gas liquefaction facility and export terminal located in the District of La Baie, in Saguenay City, Que.
The most recent updates on the project include environmental assessments, but the Conservative Party of Canada announced Thursday it plans to fast track the project.
MEI said 97 per cent of Canada’s oil exports went to the U.S. in 2024. All of its natural gas exports went south of the border last year.
Japan, South Korea, Germany and Poland have all expressed interest in Canadian energy products, it said.
The organization says Trump’s recent comments have illustrated that the U.S. is not a dependable trading partner and Canada needs to find others.
“Both provincial and federal governments will need to consider this new reality when evaluating new energy transmission projects,” Giguère said.
Recent polling has shown that residents are largely in favour of the return of pipeline projects such as Energy East and GNL Québec.
Alberta Energy and Minerals Minister Brian Jean provided CTV New with a statement Thursday afternoon:
“The MEI report backs up everything we have been saying for decades about the need to get our oil and gas to tidewater. These are just two projects killed by Ottawa. There have been tens of billions of dollars more in energy infrastructure projects stopped by the policies of the federal Liberals,” the statement said.
“This has resulted in Alberta being extremely reliant on the U.S. for energy exports and it has made us vulnerable to the tariffs we now face. Canada needs to approve more pipeline projects now so we can continue to expand to global markets and increase production of the most ethically produced oil and gas on the planet. We need a federal government that will make this infrastructure possible, but unfortunately Mark Carney has spent much of his professional career trying to kill our energy sector.”
