Evidence of meeting #31 for Foreign Affairs and International Development in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was siemens.
A video is available from Parliament.
4:20 p.m.
Managing Director, Siemens Energy Canada Limited
Siemens Energy Canada Limited has no direct relationship with Gazprom, as I mentioned earlier. Siemens Energy U.K. basically owns the contract with Gazprom.
4:20 p.m.
Liberal
Sameer Zuberi Liberal Pierrefonds—Dollard, QC
With U.K., to your knowledge, is there any evolution in that relationship?
4:20 p.m.
Managing Director, Siemens Energy Canada Limited
It's hard for me to comment on that, as well. I'm sorry.
4:20 p.m.
Liberal
Sameer Zuberi Liberal Pierrefonds—Dollard, QC
I appreciate that.
In terms of the sabotage that occurred on September 26 to Nord Stream 1 and Nord Stream 2, how will that impact our allies in Europe? Which countries, in particular, are impacted, and to what degree?
4:20 p.m.
Managing Director, Siemens Energy Canada Limited
This is also a question for Europe or the European government, I would say. The information that was conveyed to us is that the energy security would affect multiple countries in Europe.
4:20 p.m.
Liberal
Sameer Zuberi Liberal Pierrefonds—Dollard, QC
I'm assuming you can't go into further details about that.
I'd like to offer a colleague who is present the time to ask a question. I'm going through my questions and I understand that you can't necessarily speak to them all.
Ms. Bradford, do you have anything you'd like to share?
October 17th, 2022 / 4:20 p.m.
Liberal
Valerie Bradford Liberal Kitchener South—Hespeler, ON
No, thank you.
I'm just subbing, so I wasn't really prepared for questions, but I thank you for checking with me.
4:20 p.m.
Liberal
Sameer Zuberi Liberal Pierrefonds—Dollard, QC
I'd like to allow you to please share any thoughts that you haven't shared thus far that you think might be useful for us in this committee.
4:25 p.m.
Managing Director, Siemens Energy Canada Limited
Thank you. I'll use that opportunity.
I want to go back to who we are. We are an energy technology company that works with the energy industry in Canada. We are a proud Canadian company.
I look at the events, and sometimes it's difficult to explain this, but our focus right now is really on transitioning the energy sector for our customers so they can achieve their net-zero targets. This is an exciting time for us. We work across the entire energy sector, from renewable to conventional power generation and to industrial with industrial customers. We continue to support the energy industry here in Canada with its technology needs.
4:25 p.m.
Liberal
Sameer Zuberi Liberal Pierrefonds—Dollard, QC
Thank you. I'll share my remaining time with my colleague, Ms. Damoff.
4:25 p.m.
Liberal
Pam Damoff Liberal Oakville North—Burlington, ON
Thank you so much. I'm virtual.
I'm new to this committee, but I'm certainly not new to Siemens. I'm very proud to have a number of Siemens employees living in my riding. You have your head office in Oakville, Ontario. I'm proud to represent you.
My question is whether or not similar turbines manufactured by other companies could be substituted for a Siemens turbine to be used in Nord Stream 1.
4:25 p.m.
Managing Director, Siemens Energy Canada Limited
It is not easy to replace turbines. I explained this. It really depends on the technicalities of the pipeline. Certain technical parameters need to be met, and for that you need to have a special fit. It's a very long design period to design compression stations and design the size of the turbine.
Replacing existing technology with something else is a large undertaking that you could probably compare to a new build. Those are very expensive and very time-consuming or lengthy activities.
I hope that answered the question.
4:25 p.m.
Liberal
Pam Damoff Liberal Oakville North—Burlington, ON
It does. I think what you're saying is that both from a time perspective and a—
4:25 p.m.
Liberal
The Chair Liberal Ali Ehsassi
We're over the five-minute period. My apologies.
We go to Mr. Lemire next. You have two and a half minutes.
4:25 p.m.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
Thank you, Mr. Chair.
Was Canada aware, prior to imposing its arsenal of sanctions on Russia, that some of them were aimed at turbines that were potentially scheduled for maintenance in advance?
4:25 p.m.
Managing Director, Siemens Energy Canada Limited
I'm sorry. Could you repeat the question?
4:25 p.m.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
When Canada imposed economic sanctions on Russia, was it aware that you had contracts with them?
4:25 p.m.
Managing Director, Siemens Energy Canada Limited
We informed the RCMP immediately after the sanctions regime was put in place. I would assume that knowledge was shared with the government.
4:25 p.m.
Bloc
4:25 p.m.
Managing Director, Siemens Energy Canada Limited
It was escalated to us only in May, about two months after the sanctions were put in place. As I mentioned in my opening statement, once we learned about the sanctions, we immediately froze the asset and stored it. The work continued in July, after we received the permit from Global Affairs.
4:25 p.m.
Bloc
Sébastien Lemire Bloc Abitibi—Témiscamingue, QC
It seems that Gazprom refused to accept the repaired turbine and sent it back to Germany, because the company wanted additional documents proving that the turbine was not subject to sanctions.
Did you raise this issue with the government over the summer?
Is this a question you've already received an answer to?
4:30 p.m.
Managing Director, Siemens Energy Canada Limited
The turbines are still sitting in Germany, because the customer is refusing to accept them. They're saying that import.... We can't ship them out, because we don't have any import documents from the customer. That's the situation right now.
4:30 p.m.
Liberal
The Chair Liberal Ali Ehsassi
Thank you, Mr. Lemire.
We now go to Ms. McPherson.
You also have two and a half minutes.
4:30 p.m.
NDP
Heather McPherson NDP Edmonton Strathcona, AB
Thank you, Mr. Chair.
One thing you've been talking about is the reason Siemens Canada acted so expeditiously and quickly. It was because of the energy crisis and energy security across Europe. I guess, perhaps, I had less faith in Vladimir Putin than others did.
Was there ever any reason for Siemens Canada to believe that, in fact, the pipeline would continue to go forward if the turbines were provided? Did you have any inside information on that?
4:30 p.m.
Managing Director, Siemens Energy Canada Limited
One thing to clarify is that I speak for Siemens Energy Canada, because we are a separate, independent company. Siemens Canada was not involved. We had no inside information here.