The United States has ramped up natural gas production over the last year, with plans to develop several more LNG facilities in the south of the country. But it appears Canada is not the only country with big gas ambitions, as the country works to build massive new export facilities. Canada has long planned to become an LNG exporter, and new developments could bring that ambition even closer and underpin North America’s dominance in the global gas industry.
Canada’s oil industry leaders have long pushed to build LNG export facilities to secure Canada’s place in global energy markets as demand for Canadian crude oil, particularly its carbon-intensive oil sands, begins to wane. . The global shift away from Russian gas supplies leaves the door open to alternative producers and exporters. Greg Ebell, CEO of Canadian oil giant Enbridge, said: said: “Natural gas is a critical component in so many different regions of the world and will continue to do so as part of our sustainability goals and as part of our renewable energy backup.” More and more people want a better lifestyle, and that means cheap, affordable and secure energy. And inevitably, natural gas and oil will be involved for decades to come. Masu.”
Canada is the world’s fifth largest producer of oil and natural gas, and gas production has increased over the past decade. The country’s gas sales are expected to increase to about 21 billion cubic feet per day (bcf) by 2030, up from the current 17.5 bcf per day. However, its export market lags behind that of other gas producing countries. Ebel believes Canada’s gas exports could replace coal used in other countries, leading to lower emissions. “Even with the expansion of the United States, there is still plenty of room for Canada to fully participate,” he said.
Canada is currently aiming to become a major LNG exporter in the coming years. LNG Canada is being developed as a joint venture between Shell, Petronas, PetroChina, Mitsubishi Corporation, and Korea Gas Corporation. Canada’s first LNG export facility in British Columbia. The group announced in June: Construction of the project is over 80% complete And they were preparing to begin the operation. It is expected to have a production capacity of 14 million tons per year, with the possibility of expanding production capacity in the future.
Once completed, the plant will include a natural gas receiving and LNG production unit, a marine terminal capable of accommodating two LNG carriers, a tugboat dock and an LNG loading line, as well as an LNG processing unit, storage tanks, and transportation equipment. Depots, water treatment facilities, flare stacks. The first stage is expected to start shipping in 2025, after which the second stage will be developed, doubling its annual production capacity to 28 million tons.
This project was originally planned in the following way. Transport large amounts of methane gas From Canada to Asia. But the multibillion-dollar project evolved in a different way after the Russo-Ukrainian war, when there was an urgent need to secure alternative gas supplies. The facility is currently being developed to include two units that he says will convert methane into a transportable liquid.
The facility will use hydroelectric power to power turbines that cool gas into liquid, aiming to reduce carbon emissions. But this would require installing hundreds of kilometers of new power lines to reach the nuclear power plant, which is located in a remote part of the northwest coast. LNG Canada is in discussions with the province and national power company BC Hydro to manage the site’s hydropower needs. Jason Klein, CEO of LNG Canada, said: said “All stakeholders understand that further electrification of our industry benefits B.C., and the premier has clearly and consistently expressed his desire to see progress on this matter. There is.”
The construction of Canada’s first LNG export facility could support the rapid development of U.S. natural gas production capacity and propel the North American region to the top of the LNG chain. Last year, several oil and gas majors launched new announced an LNG project. However, until now, the United States criticized For approving so many LNG projects that are many years away from first production and far from completed, this could contribute to long-term carbon emissions and undermine the government’s climate commitments. means.
There is great enthusiasm in Canada’s oil and gas industry for the construction of the country’s first export terminal. This development could help Canada play a key role in expanding her LNG supply chain in North America. But the new gas project calls into question some of Canada’s climate commitments and risks fueling long-term dependence on fossil fuels, as expansion of the facility could take place over the next decade. There is.
Written by Felicity Bradstock, Oilprice.com