In May, Canada said it was in talks with Spanish company Repsol's LNG facility in New Brunswick and Pieridae Energy, which has proposed building an LNG facility in Nova Scotia, about increasing exports to Europe.

"The amount of gas that is available would be available only for one facility at this point," Environment Minister Steven Guilbeault said in an interview late on Wednesday, adding that the idea of constructing new gas pipelines in Canada was not "very realistic".

"Repsol is probably the fastest project that could be deployed because it requires minimal permitting - there's already an existing facility, (and a) gas line is right there," Guilbeault said.

The vast majority of Canada's natural gas is produced in the western provinces of Alberta and British Columbia.

Europe is seeking to diversify its energy supplies as it pivots away from Russian oil and gas after the invasion of Ukraine. Canada's foreign minister said on Wednesday talks had taken place with its European allies, including Spain and Germany, about increasing its East Coast exports.

(Reporting by Steve Scherer, additional reporting by Isla Binnie in Madrid; editing by Barbara Lewis)

By Steve Scherer