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Canada plans to boost its crude oil exports as Western importers turn away from Russian crude.
The country could increase oil exports by some 200,000 bpd from current rates, the Canadian minister of natural resources said this week, as quoted by Bloomberg. It could also boost natural gas exports by the equivalent of 100,000 barrels daily, both by the end of the year.
"Canada indicated to our European friends that we will work to help them in the current situation that they find themselves," Jonathan Wilkinson said.
The official also said discussions are underway for supplies of liquefied natural gas from Canada to Europe, even though the country has no LNG terminals yet, and the first one is scheduled for completion by 2025.
"Canada is very open to discussion about how we can help, but help in a manner that is consistent with long-term climate objectives," Wilkinson also said. Both Canada and the European Union have ambitious energy transition programs.
The Canadian natural resources minister mentioned earlier this month that Canada was looking for ways to increase deliveries of Canadian crude to Europe.
"Both our liquids and natural gas systems are at or near capacity but we're exploring options that may be taken to provide more energy to the U.S. and Europe. That includes using export facilities on the Gulf Coast for crude and natural gas," Wilkinson explained two weeks ago.
Canada is currently exporting crude oil to the United States at record rates. From the Gulf Coast, Canadian crude heads for other markets. Last year, the rate of Canadian oil exports from the Gulf Coast reached 180,000 bpd.
Meanwhile, as oil prices remain high, a growing number of Canadian producers are considering production increases. Suncor's chief executive said this month that the Canadian oil industry could quickly add 200,000 bpd to its total output.
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com