Mr. Speaker, on February 28, 2022, in response to Russia’s invasion of Ukraine, the Government of Canada acted decisively to ban the import of crude oil and petroleum products from Russia. Canada produces more oil than required to meet its domestic refining needs. Although Canada does still import oil for certain regional needs, since 2019 there have been no imports of crude oil from Russia. This new ban will ensure that Canada will continue not to import any crude oil from Russia going forward. During the IEA ministerial on March 24, 2022, Canada announced the incremental increase in its oil and gas production of up to 300,000 barrels per day, including 200,000 barrels per day of oil and up to 100,000 barrels of oil equivalent per day of natural gas, by the end of 2022. Most of this additional production is the result of producers bringing forward planned production from 2023. This comes in the context of a release of 30.225 million barrels by the U.S. from its strategic petroleum reserve earlier this month, which was followed by a March 31, 2022, announcement by the President of the United States of another 180 million barrels over the next six months.
In August 2019, the Government of Canada announced the coming into force of the new Impact Assessment Act and the Canada Energy Regulator Act: https://www.canada.ca/en/impact-assessment-agency/news/2019/08/better-rules-for-impact-assessments-come-into-effect-this-month.html. The better rules and regulations outlined in these acts have been implemented to give companies and investors more clarity and certainty, and to ensure good projects can move forward in a timely way. These acts will continue to build public confidence by ensuring that federal decisions made about pipelines, mines, and hydro dams are guided by science, indigenous knowledge, and other evidence.
The Government of Canada remains committed to completing projects currently under way in the proper manner, including the Trans Mountain pipeline expansion project, TMX. Once complete, pipeline capacity will increase from the current 300,000 barrels per day to 890,000 barrels per day. The project is 50% complete and is expected to be in service by late 2023. In addition, to enhance market access for Canadian natural gas, the Government of Canada approved three significant expansion projects on the Nova Gas Transmission Limited, NGTL, system since 2020, known as the NGTL 2021, north corridor, and Edson mainline expansions. Last, Enbridge’s Line 3 replacement project has now been completed and is in service on both sides of the border. This is another vital energy infrastructure that will strengthen continental energy security, while improving safety performance, increasing indigenous involvement, and enhancing economic benefits on both sides of the border.
The Government of Canada remains engaged with key international partners, such as Germany and the U.S., on a bilateral basis and in multilateral forums, including the IEA, on providing support in the medium to long term on stabilizing energy markets and the transition to clean energy.
In 2021, the Canada-Germany energy partnership was concluded. The purpose of the energy partnership is to advance engagement on the energy transformation through exchanges on policy, best practices and technologies, as well as through co-operative activities and projects focused on five key areas: energy policy, planning and regulations; resilient electricity systems that can integrate high levels of renewables; energy efficiency; sector coupling and low-carbon fuels; and innovation and applied research.
Under the partnership, Canada and Germany are working together to leverage Germany’s appetite for hydrogen and its efforts to abate sectors. Canada and Germany look to deepen and focus their collaborative work through our energy partnership, particularly in light of the Ukraine invasion and the desire for Canada to contribute to German energy security.
Bilateral work with Germany will draw from, and align with, the work being done under the Canada-EU energy security/green transition and LNG working group. The energy partnership is building a foundation for medium-term exports of responsibly produced LNG and hydrogen. Critical minerals will be added to the energy partnership action plan, in keeping with the Prime Minister and the Chancellor of Germany’s announcement on March 9, 2022, of a new bilateral dialogue on mineral security.
