Canadian Energy Centre
B.C. First Nation buying ‘ready-to-go’ natural gas pipeline to supply LNG project
Eva Clayton, president of the Nisga’a Lisims Government, speaks during a homecoming celebration for the House of Ni’isjoohl memorial totem at the Nisga’a Nation, in Laxgalts’ap, B.C., Friday, Sept. 29, 2023. CP Images photo
From the Canadian Energy Centre
By Will Gibson‘It is an opportunity for us to create a better quality of life for our children and grandchildren’
Momentum continues building for Indigenous-led Canadian liquefied natural gas (LNG), with a second project securing a pipeline connection.
The Nisga’a Nation, a small coastal community near B.C.’s border with Alaska, announced earlier this month it will purchase TC Energy’s Prince Rupert Gas Transmission project along with partner Western LNG.
It’s a turning point for the proposed Ksi Lisims LNG project, particularly because the pipeline has all the permits it needs to go ahead, said market analyst Ian Archer.
“Buying this asset, a permitted and ready-to-build natural gas pipeline, puts control in the hands of the project’s partners,” said Archer, S&P Global’s associate director for gas, power and climate solutions.
“The Nisga’a Nation and Western LNG now have control over the timeline and development of their proposed development. It’s a great day for them and the LNG industry in B.C.”
The purchase comes after years of uncertainty for the proposed 900-kilometre pipeline, which would run from Hudson’s Hope in northeast B.C. to Lelu Island, near Prince Rupert.
It was originally supposed to supply the $36-billion Pacific NorthWest LNG project, which was cancelled in 2017.
In 2014, the Nisga’a Nation signed an agreement for construction of the pipeline through its traditional lands. Today, Nisga’a president Eva Clayton says becoming an owner of the project ensures it will provide even greater benefits.
Nisga’a Nation and Western LNG to purchase PRGT natural gas projecthttps://t.co/jPVDa3jzQP pic.twitter.com/Er6ugtTlkV
— NLG – Nisga'a Nation (@NLGNisgaaNation) March 14, 2024
“This means more training, more priority hiring, more contracts and procurement for our workers and businesses, and more investment in our nation,” Clayton said.
“It is a historic development, and an opportunity for us to create a better quality of life for our children and grandchildren here in the Nass – and for First Nations all along the pipeline route.”
Ksi Lisims is a proposed floating facility with capacity to export 12 million tonnes of LNG per year. It is owned by the Nisga’a Nation, Western LNG, and Rockies LNG – a consortium that includes some of Canada’s largest natural gas producers.
Archer, who has spent more than 20 years analyzing the energy sector, sees the partnership as a template for the future.
“The trend now is Indigenous participation in energy developments is seen as a given as opposed to just engagement or consultation with communities,” he says.
“There is a recognition by both energy producers and Indigenous communities that they have a vested interest in exploring and participating in partnerships to responsibly develop oil and gas and build critical infrastructure to support that. That trend will continue to grow because it makes sense for everybody.”
The momentum is building for Ksi Lisims – which also recently signed on Shell as a long-term LNG buyer and filed its regulatory application for an environmental certificate – hot on the heels of Cedar LNG, another Indigenous-led project on the B.C. coast.
Cedar LNG, owned jointly by the Haisla Nation and Pembina Pipeline Corporation, has regulatory approval to proceed and is preparing for construction to start. A final investment decision is expected by the middle of this year.
Cedar’s pipeline is already in the ground. It will be served by Coastal GasLink, a 670-kilometre pipeline from northeast B.C. to Kitimat that was completed late last year.
The project was built primarily to feed the LNG Canada terminal, which is now more than 85 per cent complete.
Less than a kilometre of connecting pipeline – called Cedar Link – would need to be built to get gas flowing to the Indigenous-owned Cedar LNG project.
Given the appetite for LNG for potential customers in Asia (expected to drive a nearly 70 per cent increase in global demand through 2040), Clayton sees Ksi Lisims as key for providing opportunities for her community.
“For far too long, First Nations could only watch as others built generational wealth from the resources of our traditional lands. But times are changing. Our ownership role in this pipeline signals a new era for Indigenous participation in Canada’s economy.”
Alberta
Canada’s advantage as the world’s demand for plastic continues to grow
From the Canadian Energy Centre
By Will Gibson
‘The demand for plastics reflects how essential they are in our lives’
From the clothes on your back to the containers for household products to the pipes and insulation in your home, plastics are interwoven into the fabric of day-to-day life for most Canadians.
And that reliance is projected to grow both in Canada and around the world in the next three decades
The Global Plastics Outlook, published by the Paris-based Organization for Economic Co-operation and Development (OECD), forecasts the use of plastics globally will nearly triple by 2060, driven by economic and population growth.
The use of plastics is projected to double in OECD countries like Canada, the United States and European nations, but the largest increases will take place in Asia and Africa.
“The demand for plastics reflects how essential they are in our lives, whether it is packaging, textiles, building materials or medical equipment,” says Christa Seaman, vice-president, plastics with the Chemical Industry Association of Canada (CIAC), which represents Canada’s plastics producers.
She says as countries look to meet climate and sustainability goals, demand for plastic will grow.
“Plastics in the market today demonstrate their value to our society. Plastics are used to make critical components for solar panels and wind turbines. But they also can play a role in reducing weight in transportation or in ensuring goods that are transported have less weight in their packaging or in their products.”
Canada produces about $35 billion worth of plastic resin and plastic products per year, or over five per cent of Canadian manufacturing sales, according to a 2019 report published by the federal government.
Seaman says Canadian plastic producers have competitive advantages that position them to grow as demand rises at home and abroad. In Alberta, a key opportunity is the abundant supply of natural gas used to make plastic resin.
“As industry and consumer expectations shift for production to reduce emissions, Canada, and particularly Alberta, are extremely well placed to meet increased demand thanks to its supply of low-carbon feedstock. Going forward, production with less emissions is going to be important for companies,” Seaman says.
“You can see that with Dow Chemical’s decision to spend $8.8 billion on a net zero facility in Alberta.”
While modern life would not be possible without plastics, the CIAC says there needs to be better post-use management of plastic products including advanced recycling, or a so-called “circular economy” where plastics are seen as a resource or feedstock for new products, not a waste.
Some companies have already started making significant investments to generate recyclable plastics.
For example, Inter Pipeline Ltd.’s $4.3 billion Heartland Petrochemical Complex near Edmonton started operating in 2023. It produces a recyclable plastic called polypropylene from propane, with 65 per cent lower emissions than the global average thanks to the facility’s integrated design.
Achieving a circular economy – where 90 per cent of post-consumer plastic waste is diverted or recycled – would benefit Canada’s economy, according to the CIAC.
A Deloitte study, commissioned by Environment & Climate Change Canada, estimated diverting or reusing 90 per cent of post-consumer plastic waste by 2030 will save $500 million annually while creating 42,000 direct and indirect jobs. It would also cut Canada’s annual CO2 emissions by 1.8 megatonnes.
Right now, about 85 per cent of plastics end up in Canada’s landfills. To reach the 90 per cent diversion rate, Seaman says Canada must improve its infrastructure to collect and process the plastic waste currently being landfilled.
But she also says the industry rather than municipalities need to take responsibility for recycling plastic waste.
“This concept is referred to as extended producer responsibility. Municipalities have the responsibility for managing recycling within a waste management system. Given the competing costs and priorities, they don’t have the incentive to invest into recycling infrastructure when landfill space was the most cost-effective solution for them,” she says.
“Putting that responsibility on the producers who put the products on the market makes the most sense…The industry is adapting, and we hope government policy will recognize this opportunity for Canada to meet our climate goals while growing our economy.”
Business
Decarbonization deal opens new chapter in Alberta-Japan relationship
From the Canadian Energy Centre
By Will Gibson
Agreement represents a homecoming for JAPEX, which first started work in the Alberta oil sands in 1978
A new agreement that will see Japan Petroleum Exploration Company (JAPEX) invest in decarbonization opportunities in Alberta made history while also being rooted in the past, in the eyes of Gary Mar.
JAPEX is seeking to develop projects in carbon capture and storage (CCS), hydrogen and bioenergy. It’s part of the company’s JAPEX2050 strategy toward carbon neutrality.
“This new endeavour is a great opportunity that demonstrates the world is changing but the relationships endure,” says Mar, the province’s former trade envoy to Asia and the current CEO of the Canada West Foundation.
“Alberta’s very first international office was opened in Tokyo in 1981. And we have built a tremendous soft infrastructure that includes partnerships between a dozen Alberta and Japanese universities.”
For JAPEX, the agreement represents something of a homecoming for the company that first started work in the Alberta oil sands in 1978 and operated one of the first in situ (or drilled) oil projects for nearly two decades before selling its stake in 2018.
“We are now aiming to come back to Alberta and contribute to its decarbonization,” JAPEX president of overseas business Tomomi Yamada said in a statement.
Mar says the memorandum of understanding signed this March between JAPEX and the crown corporation Invest Alberta stems from a strong relationship built over decades.
“You can’t be considered a reliable partner for a new venture if you haven’t been a reliable partner for decades in the past,” says Mar.
“Economies change and world’s needs change but strong relationships are important factor in whom you do business with.”
Alberta’s established CCS infrastructure has already attracted new investment, including Air Products’ $1.6-billion net zero hydrogen complex and Dow Chemicals’ $8.8-billion net zero petrochemical complex.
Mar sees JAPEX’s deal with Invest Alberta opening a whole new market of potential carbon neutral investors in the Pacific Rim.
“When other countries who are partners in the Trans-Pacific Partnership (TPP) see JAPEX invest in this decarbonization opportunities and net zero projects in Alberta, it will send a very clear signal to others in the TPP about the potential,” Mar says.
“This deal may come from the decades-long relationship between Alberta and Japan but can also serve as a signpost for decades to come.”
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