|Theme||Visible||Selectable||Appearance||Zoom Range (now: 0)|
In Canada, early, integrated and continuous engagement with local communities, governments, indigenous peoples and nongovernmental organizations (NGO) has never been more critical for large-scale energy project development. Achieving "social license" has taken on new meaning for developers seeking public support to proceed, and for antidevelopment interests that have arrived at their own meaning of "in the public interest". With the United Nations Declaration on the Rights of Indigenous Peoples, "in the public interest" now has its equivalent in "free and prior informed consent". As such, more than ever, developers must seek first to understand the interests and values of local residents, indigenous peoples and communities, assess project impacts to benefits, and build relationships that not only accept large-scale energy infrastructure projects, but also advocate for them. As every project is different in terms of its geography, people, history and culture, a onesize-fits-all approach to managing societal interests cannot work. However, there are some common principles that can help even the most challenging projects, while increasing overall project value, and driving greater cost and schedule certainty.
The Canadian government plans to invest almost $210 million (CAD 275 million) for LNG Canada's complex in Kitimat, British Columbia, the Ministry of Innovation, Science, and Economic Development confirmed in a statement. The investment will include $160 million from the Strategic Innovation Fund to help fund energy-efficient gas turbines for LNG Canada, which the government said will minimize greenhouse gas emissions and fuel use. The additional funds, provided by Western Economic Diversification Canada, will be used for the replacement of the Haisla Bridge in the District of Kitimat to support and service existing and increased traffic in the region. With a total estimated price tag of $30.5 billion, the Kitimat project will include a liquefaction facility, a 416-mile pipeline from Dawson Creek and a marine terminal. Construction began in October 2018, and the target in-service date is sometime in the mid-2020s.
Shell Oil and its partners finally have committed to building Canada's first LNG plant, providing a badly needed export outlet for huge gas plays that have been depending on a shrinking US export market. The project announced Tuesday along with a final decision by TransCanada to build a pipeline to supply the facility, are big for several reasons. It is the biggest LNG project globally since 2016, in a sector that had ground to a halt as new and expanded facilities flood the global market. It is expected to add a low-cost source of supply near Asian markets in the mid-2020s when demand is expected to outstrip LNG supplies. Building the two gas liquefaction units in the port of Kitimat, British Columbia, plus the 670-km pipeline will cost more than $20 billion, making it one of the biggest private sector projects ever in Canada.
Abstract Today, almost half of Western Canada's natural-gas production comes from the Triassic-aged Montney formation, a six-fold increase over the last 10 years while gas production from most other plays has declined. In the last few years, demand for condensate as diluent for shipping bitumen has driven development of liquids-rich Montney natural gas leading to a surge in gas production and gas-on-gas competition in the Western Canadian Sedimentary Basin (WCSB), which has driven local natural gas prices down. This has had a material effect on the operations and finances of companies active in the Western Canada and is re-shaping the Canadian gas industry. A significant portion of this growth has taken place in NE British Columbia and with the planned electrification of the industry in British Columbia, including the nascent LNG operations, will influence tomorrow's power industry in this region. NE British Columbia is a geographically large area with sparse population and the power supply into this region has lagged behind development of oil and natural gas resources. The area was originally served from geographically closer NW Alberta. More recently, supply was established from the BC Hydro power grid with the most significant developments being Dawson Creek-Chetwynd Area Transmission (DCAT) completed in 2016 and the additional 230 kV transmission projects scheduled for completion in 2021.