Connect with us

Energy

Canada’s Most Impactful Energy Issues in 2024

Published

17 minute read

From EnergyNow.ca

By Deidra Garyk

It feels like we are in the beginning of a cultural, social, and political disruption. The fear of saying the wrong thing and being cancelled is subsiding, resulting in robust debate about important topics. Public pushback against climate alarmism and energy misinformation is getting louder as more and more people join in the discussion.

I have enjoyed watching the increased skepticism and distrust towards “the settled Science” and the agreed upon narratives in favour of open, genuine, inquisitive conversations with a focus on practicable solutions. People are fed up with niche topics taking up a disproportionate amount of airtime in place of issues that are relevant to the majority of the country.

These are a few of the energy topics that I feel were most impactful for the year, with many having a lasting impact into 2025 and beyond.

SHIFTING POLITICAL WINDS

As Canada implements more and more regulatory hurdles for the oil and gas industry, the US re-elected pro-business, pro-oil, political outsider Donald Trump in a ‘uge win, with the majority of counties shifting from blue (Democrat) to red (Republican).

He isn’t even sworn in, and Trump is lighting things up via social media decrees. Using Truth Social, he announced that a 25 percent tariff will be placed on all goods coming from Canada and Mexico unless their respective borders are addressed to his satisfaction.

This will affect all Canadian businesses, not the least being those in the oil patch since 4 million barrels of oil per day go to the US, along with 7.9 billion cubic feet per day of natural gas. 77 percent of Canadian exports enter the US market; therefore, a 25 percent tariff is another obstacle affecting Canadian businesses’ competitiveness, which are already faced with various regulatory and taxation hurdles from Canadian governments, such as the carbon tax that increases each year.

Expect to see a shake-up in the Department of Energy and the narrative around climate and energy with the nomination of Chris Wright, CEO of Liberty Energy, for US Secretary of Energy. Chris has been a bold, unapologetic, pragmatic energy realist who cares about balancing environmental responsibility with resource development to help supply the world with reliable, affordable energy. His principled leadership has elevated him to one of the highest offices in the US.

Chris Wright is not afraid to go against the crowd. Liberty successfully challenged the SEC’s climate reporting rules and were instrumental in getting them halted. You can listen to his clarity of thought as he testifies on the rules before the U.S. House of Representatives’ Financial Services Committee (Chris’ testimony starts at 53:58).

As the first energy secretary to come from the energy sector, I anticipate that the government’s energy messaging and policy is going to shift away from climate alarmism to one of balance and open-mindedness. I hope he staffs the Department with people who understand energy and are not focused on misguided ideology. The ripple effects will be felt around the globe, and now is the time to embrace people’s scepticism and exhaustion with the constant drumbeat of fear about the use of hydrocarbons.

Much like the massive political shift voted in by the Americans, Canadians are also ready for a change. Prime Minister Trudeau and his Liberal party continue to lag in the polls, indicating voters’ displeasure with their policies. Poll aggregator 338Canada predicts a resounding majority for the federal Conservatives. Will we begin to see better energy policy after the next election?

RENEWABLES’ REALITY AND COOLING CLIMATE CLUBS

As a further demonstration of the shifting social and political winds, the net zero climate movement has seen major companies quell their public support for associated initiatives. The appetite for costly net zero commitments from voters who are struggling to pay their bills is waning, and politicians are hearing about it.

Many Republican-led states have pushed back on anti-hydrocarbon, net zero financing, and that has influenced how companies behave, starting with an exodus from Mark Carney’s net zero allianceGFANZ (Glasgow Financial Alliance for Net Zero). The Net-Zero Insurance Alliance (NZIA), a subset of GFANZ, has lost about half of its members since March 2023. Climate initiatives, like Climate Action 100+ and the Net Zero Banking Alliance (NZBA) are also losing members who are concerned about the consequences of their affiliation with anti-hydrocarbon groups who attempt to influence how businesses conduct their operations, sometimes through coercive involuntary membership and social shaming.

The energy transition continues to face opposition. In summer 2023, the Alberta government placed a temporary, six-month moratorium on renewable energy – wind and solar – projects in an attempt to balance development with agricultural and social concerns. The condemnation from environmental groups and the Alberta NDP was swift and loud, but not always truthful. On the other side were landowners who were concerned about the consequences of the projects on their communities. A documentary, Generation Green, by filmmaker Heidi McKillop, documents the push-pull of renewable project development in Alberta.

The new rules include development limits on certain agricultural lands, protection of viewscapes using buffer zones, and a requirement for an upfront bond to pay for future reclamation costs. Landowners and associations have praised the changes for addressing concerns and being balanced.

January’s polar vortex reconfirmed people’s willingness to rethink some large-scale industrial wind and solar installations. The extreme cold resulted in alerts warning of potential rotating blackouts, reminding Albertans about the need for reliable, affordable, on-demand energy.

At the same time that Canadians are questioning the reliability of our grids, the government went all in on their bet on the adoption of electric vehicles, generously giving EV battery makers billions of taxpayer-funded subsidies to set up shop in Canada. However, plans have hit speed bumps (pun intended).

Sweden’s Northvolt, the recipient of $7.3 billion in loans, equity stakes, and subsidies from Canada, recently filed for bankruptcy protection in the US. The company says this will not affect its Canadian plant, which is being used as collateral to secure bailout financing in the US.  Meanwhile, other plants have been delayed. It seems like this may not have been a good “investment” for taxpayers.

Not that the Liberal government has been cautious with our money. Sustainable Development Technology Canada, colloquially referred to as the green slush fund, violated government funding rules and breached conflict-of-interest and ethics laws by improperly giving away millions of dollars. The scandal is so bad that the RCMP are investigating whether or not there was criminal wrongdoing; however, the government has been at a standstill for weeks because the Liberals refuse to hand over documents to help with the investigation.

COP29, THE FINANCE COP(S)

The COP conflab in Baku, Azerbaijan, in November didn’t skip a beat, seemingly ignorant of the shifting support for costly environmental action predicated on alarmism. Its 65,000 delegates waxed lyrical about the need to transfer funds from developed nations who are allegedly responsible for climate change to developing nations who are disproportionately victimized by changing weather conditions. What was dubbed “the New Collective Quantified Goal” (NCQG) on climate finance, governments tripled their handouts to US$300 billion annually by 2035, and got commits from public and private entities to increase that funding to US$1.3 trillion per year by 2035.

No one likes spending other people’s money quite like Minister Steven Guilbeault. You can find a daily outline of Canada’s COP commitments here.

We should have a new environment minister in time for COP30 in Brazil. And thankfully so, my wallet can’t take much more!

REGULATORY RAT’S NEST

In June, with the passage of Bill C-59, the Canadian Competition Act was amended with expanded provisions to address greenwashing complaints, including excessively punitive charges for breaking the new rules. The gag order has silenced oil and gas companies. Many, such as the Pathways Alliance of the six biggest oilsands producers, took down their websites immediately after the changes were announced. Others took down their ESG reports and environmental statements.

Even though oil and gas is likely to be disproportionately targeted and penalized, this Bill is agnostic; complaints can be made against all industries, and the unelected, unaccountable bureaucracy will decide who will and will not be investigated.

The fines are material.  $750,000 for an individual’s first offence and $10 million per misrepresentation for a company’s first offense, up to 3% of annual worldwide gross revenues. Analysis from one of the Big Four consulting firms uncovered approximately one potential misrepresentation per page of an ESG report; some reports run close to 100 pages, so the consequences of a fine are impactful, hence the swift reaction from companies.

While business leaders navigate the landmines created by C-59, mandatory sustainability (i.e. ESG) reporting standards are expected to be rolled out next year, with the latest draft issued in the next week or two. The Canadian securities regulator has said they are focused on climate as the first reporting topic. Nevertheless, it is reasonable to expect the Canadian standards will be expanded as the international standards broaden to include biodiversity and human capital, and possibly “just transition”.

In addition to the requirements for publicly traded companies, the feds’ announced mandatory climate reporting for all large, Canadian incorporated companies, including private. Corporations will be forced to publicly disclose their environmental performance while also being hamstrung by the greenwashing changes.

If you feel like an Olympian high jumper, it may be because companies have to be to meet ever higher regulatory requirements set by our federal government. Just when companies think they’ve cleared the bar by voluntarily cutting emissions from production, the feds raise it one foot higher.

November 4 brought the long-awaited draft emissions cap for the oil and gas industry, targeting a 35 percent emissions reduction below 2019 levels by 2030. To say the industry is annoyed is an understatement, and rightfully so.

You can’t keep a good industry down, though! The Canadian Association of Energy Contractors (CAOEC) is forecasting drilling growth in 2025, meaning the industry and its jobs are maintaining a positive trajectory. There’s continued optimism in the patch thanks to increased egress capacity following the start-up of TMX and the near completion of LNG Canada. The CAOEC 2025 forecast anticipates a total of 6,604 wells drilled, a 5.2% increase in rig operating hours, and total jobs (direct and indirect) of 41,800 – all up from 2024. This is good for workers, families, communities, and the economy.

PIPELINE EGRESS PROGRESS

The long-delayed, over-cost Trans Mountain Expansion Project (TMX) became operational on May 1, 2024, proving that we can still build things in Canada. The pipeline allows for the transportation of up to 890,000 barrels per day of oil to the west coast, which has helped narrow the differential of Western Canada Select crude. Congrats to everyone who worked on the project!

Another project of significant national importance is the 670 kilometre Coastal GasLink (CGL), the first pipeline built to the west coast in 70 years. Although the historical pipeline was completed ahead of schedule in late 2023, its completion affected the drilling and development plans of companies this year as we wait for the start up of the LNG Canada facility in 2025. CGL is another reason for optimism.

PERSONAL HIGHLIGHTS AND MILESTONES

2024 marks 20 years in the patch for me. I’ve had the opportunity to work alongside many astute, industrious, innovative folks who have integrity and heart for their work and co-workers. I thank each of you for shaping my career.

In February, I moderated EnergyNow’s event The Road Ahead: Alberta Energy 2024 with Minister of Energy and Minerals Brian Jean and distinguished energy analyst Dave Yager. We sold out the Petroleum Club ballroom and filled the room with lively discussion and camaraderie.

I then had the honour of moderating the sold-out luncheon panel at the 2024 Lloydminster Heavy Oil Show in September, featuring Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe. They graciously answered my questions, including one on the Keystone Pipeline – the new “hot topic”.

Premier Smith predicted that a change in US government could see the project resurrected. The Republicans took control of the White House, the Senate, and the House, so we will see if the Premier gets her wish. You can listen to her full answer here and a shorter clip here.

As we close off another fortunate year, I wish all the best for 2025.


Deidra Garyk is the Founder and President of Equipois:ability Advisory, a consulting firm specializing in sustainability solutions. Over 20 years in the Canadian energy sector, Deidra held key roles, where she focused on a broad range of initiatives, from sustainability reporting to fostering collaboration among industry stakeholders through her work in joint venture contracts.

Outside of her professional commitments, Deidra is an energy advocate and a recognized thought leader. She is passionate about promoting balanced, fact-based discussions on energy policy, and sustainability. Through her research, writing, and public speaking, Deidra seeks to advance a more informed and pragmatic dialogue on the future of energy.

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Energy

Trump’s Administration Can Supercharge America’s Energy Comeback Even Further

Published on

 

From the Daily Caller News Foundation

By Curtis Schube

One of the first executive orders President Trump issued was “Unleashing American Energy.”

It begins an effort to undo the harm caused by the Biden administration’s unprecedented assault on the American energy sector. It overturns President Biden’s own destructive executive orders, including those canceling oil leases and prioritizing environmental regulations over the good of the economy and producing reliable energy.

It also orders that unduly burdensome energy regulations be rescinded. Trump’s EO forthrightly states that its goal is to encourage energy production “to meet the needs of our citizens and solidify the United States as a global energy leader.”

This executive order takes the nation in a whole new direction. It orders the agencies to audit their policies to weed out burdensome regulations that impact energy development. It terminates the infamous Green New Deal. It prioritizes employment and economic impacts in energy policy. It also revokes a Jimmy Carter Executive Order to reduce the burden on environmental studies that notoriously hold up energy projects.

One reform that met less pomp and circumstance, but is not lacking in impact, is permitting reform. President Trump’s Order instructs agencies to “eliminate all delays within their respective permitting processes including … the use of general permitting and permit by rule.”

This type of permitting reform should impact all American lives for the better. We all know how difficult permits can be to obtain, even if on a smaller scale than energy. When making an addition to a house, for example, one must submit it to government and pray that everything is correct.

Then, the waiting game begins as the government reviews the application, requires possible alterations at the its whim, then, eventually at some point, the project can move forward. It can be expensive and time consuming, and sometimes may deter people from even trying.

The same applies on a larger scale. Permits for major projects, like an oil well, can take years, even a decade or longer, to jump through all of the hoops. And, as the federal government is the gatekeeper to many different varieties of activities that require a permit, whoever is in charge of the executive branch can cripple a project.

Permits by rule and  general permits simplify the process drastically and ease the burden on both the applicant and the government. They are simple and predictable. For both types of permits, the government will first pre-determine the required criteria for someone to meet before the permitted conduct can commence. The government will promulgate the standards for all to see and know.

The applicant, knowing exactly what is required to perform the permitted conduct, can get a project moving quickly. For a general permit, no contact with the government is even needed. A permittee can begin a project so long as it satisfies the pre-set standards.

For a permit by rule, the applicant simply has to certify to the government, in writing, that all the criteria have been met. In response, the government can only check to see if the correct certifications are made and then either approve it or return the certifications with an explanation of which ones are not met. This is done in a short period of time, such as 30 days.

In both cases, the government has no discretion on a case-by-case basis. Instead of focusing its efforts as a gatekeeper for permits, the government will only focus on permittees who have not met the criteria, but after the permittee has begun its project. The government’s role is focused on enforcement actions.

Both sides benefit from this system. For those who behave correctly, the permitting process does not hold up projects. For the government, the resource drain for overseeing permitting is drastically reduced. The government only has to focus its attention on the minority of parties.

This system also has a built-in deterrent. If a permittee were to begin a project, only to have the government shut the project down at a later time through an enforcement action, the permittee would lose a significant investment.

The true benefit is to the American people. If energy companies can have a quick and expedited form of permitting, then the supply of energy can expand quicker. This makes the cost of energy, and all products, cheaper. In the wake of natural disasters, rebuilding can happen quicker. Infrastructure can be put in place faster. The benefits go on and on.

Permitting reform, such as that referenced in President Trump’s Executive Order, is a fantastic first step toward a more efficient government. His agencies should take full advantage and convert as many permits as possible to a permit by rule or general permit as soon as possible.

Curtis Schube is the Executive Director for Council to Modernize Governance, a think tank committed to making the administration of government more efficient, representative, and restrained. He is formerly a constitutional and administrative law attorney.

Continue Reading

Economy

Newly discovered business case for Canadian energy could unleash economic boom

Published on

From Resource Works

Canada has a hefty slate in recent years of big natural-resource projects that were abandoned, or put on a back burner, often because of government action or inaction.

One estimate is that Canada has seen $670 billion in cancelled resource projects since 2015, when Justin Trudeau became prime minister.

True, the Trudeau government in 2018 backed and took over the Trans Mountain oil pipeline expansion project, known as TMX. That’s been a success since May 2024, moving oil to U.S. and Asian buyers. It’s looking now to move more oil to Asia. And Ottawa is talking of First Nations getting some equity interest in it.

Many other major projects have been shelved or scrapped, though, some due to corporate economic decisions, but many due to governments.

One prime example was the Énergie Saguenay LNG project in Quebec. That $20-billion plan was fatally throttled in 2022 — on green grounds — by Quebec’s government and Trudeau’s minister of environment and climate change, Steven Guilbeault.

Now, with Trudeau leaving and a potential change federal government possible, there’s some early talk of reviving some projects. For example, Nova Scotia Premier Tim Houston has urged Ottawa to “immediately” revive the Energy East oil pipeline project.

And U.S. President Donald Trump’s threats of tariffs on imports from Canada have underlined calls for new energy exports to new overseas customers.

We list below 31 projects that have been abandoned or shelved, or have not been heard from for years. They are listed in order of the year of cancellation, or the year they were last heard from.

Keltic LNG

This project was actually an LNG import facility that would then manufacture plastic pellets.  It  won its first government approval (from Nova Scotia) in 2007. But it never went ahead, and all approvals long ago expired.

Corridor Resources shale gas

Proposed in 2011, the idea was to produce from the huge shale-gas reserves in New Brunswick. But Corridor Resources (now called Headwater Exploration Inc)  was unable to find a partner. And in 2014 the N.B. government put a moratorium on hydraulic fracturing (“fracking”) for gas; it is still in effect.

Dunkirk oil sands 

Proposed by the billionaire Koch brothers of the U.S. in 2014, but ditched later that year, this Alberta project was supposed to produce up to 60,000 barrels a day, using the in-situ steam-assisted gravity drainage (SAGD) process.

Kitsault LNG

Kitsault Energy proposed in 2013 an LNG-for-export project at the northern mining ghost town of Kitsault BC. It hoped to line up a pipeline partner, create an ‘energy corridor’, and to begin production in 2018. It said it was still working on cost estimates in 2014, and nothing was heard thereafter.

Carmon Creek oil sands

Shell proposed this in 2013, to produce 80,000 barrels a day. The company in 2014 said it would slow down the project while attempting to lower costs and improve its design. But in 2015, Shell gave up on it, giving a lack of pipelines to coastal waters as one reason.

Stewart LNG

The Canada Stewart Energy Group proposed in 2014 an LNG terminal near Stewart in northern BC. It aimed to produce 30 million tonnes a year, starting in 2017. It has not been heard from since 2014.

Watson Island LNG

This LNG terminal was proposed in 2014 by Watson Island LNG Corporation, to be located at Prince Rupert, with capacity to produce one million tonnes of LNG a year. There have been no updates since 2014, and the project’s website is no longer online.

Discovery LNG

Rockyview Resources was the developer of this LNG project at Campbell River on Vancouver Island, first proposed in 2014. It was a big plan, for 20 million tonnes of LNG a year, and would need a 300-km pipeline from the mainland. As of January 2018, Rockyview was reported still seeking partners, but there have been no updates since 2015.

Orca LNG

A Texas-based company got from Canada’s National Energy Board in 2015 a license to export 24 million tonnes of LNG a year, from a proposed plant at or near Prince Rupert. There has been no news from the developer since then.

New Times Energy LNG

New Times Energy proposed in 2015 to locate at Prince Rupert an LNG terminal capable of producing 12 million tonnes of LNG a year. Ottawa approved its export licence in 2016, but there has been no news of the project, or of any pipeline to feed it, since then.

Northern Gateway 

Journalist Tom Fletcher recently looked in Northern Beat at the idea of reviving the $7.9-billion Northern Gateway pipeline, first proposed in 2008 and shelved in 2016.

“One new project that could be reactivated is the Northern Gateway oil pipeline, snuffed out by Prime Minister Justin Trudeau’s environmental posturing.

“Already burdened by court challenges, Enbridge’s Northern Gateway was killed by Trudeau’s 2016 declaration that oil tankers shouldn’t be allowed near the ‘Great Bear Rainforest.’

“He is among many urban people who are unaware this faux-Indigenous name was dreamed up by professional environmentalists at a fancy restaurant in San Francisco, explicitly to create a barrier for Canadian oil exports to Asia. . . ..

“Those Asia exports have finally begun to flow in significant volumes through the recent Trans Mountain pipeline expansion, which has been mostly at capacity since it opened.”

Fletcher notes that in 2021 then-Conservative leader Erin O’Toole campaigned on a promise to revive the Northern Gateway pipeline.

“Whether a new federal government can or wants to revive Northern Gateway is unknown. But combined with Coastal Gaslink, it would build on a northern resource corridor that could also include the already-permitted Prince Rupert Gas Transmission line now proposed by TC Energy and the Nisga’a government.

“The Prince Rupert line would supply a floating LNG plant (the Nisga’a Nation’s Ksi Lisims LNG project) and new power lines along the energy corridor could help serve the needs of the broad expanse of northern B.C. that remains off the grid.”

Muskwa oil sands

Another project of the Koch brothers in Alberta’s oil sands, proposed in 2012, this project was to produce 10,000 barrels per day. It was scrapped in 2016, with the developer citing “regulatory uncertainty.”

Douglas Channel LNG

This modest (0.55 million tonnes a year) floating LNG project was led by Alta Gas. The plan was for a $400-million floating terminal in Douglas Channel near Kitimat. It was shelved in 2016, with Alta Gas citing a global surplus in LNG, and low prices.

Triton LNG

At the same time as scrapping Douglas Channel LNG (above), Alta Gas and partner Idemitsu Kosan of Japan put a freeze on the Triton LNG project in the same area. It was proposed in 2013, and was to have produced up to 2.3 million tonnes of LNG per year.

Energy East 

Another classic and costly example of shelving was the $15.7-billion Energy East pipeline. This was proposed in 2013, the aim being to switch 3,000 km of the TransCanada gas pipeline to carry oil, and add another 1,500 km of oil pipeline and facilities. All this so it could move oil from Alberta and Saskatchewan to Quebec and New Brunswick refineries, for domestic use and for exports.

The project was strenuously attacked by environmental groups (and a number of First Nations) and a poll showed nearly 60% of Quebecers opposed it. Quebec politicians called for more stringent environmental rules to apply to it, and the Quebec government decided on a court challenge, to ensure the Quebec portion of the project met that province’s environmental laws and regulations.

Trans Canada (now TC Energy) then shelved the project in October 2017, citing “existing and likely future delays resulting from the regulatory process, the associated cost implications and the increasingly challenging issues and obstacles.” The project had already cost Trans Canada $1 billion.

(The same day, Trans Canada also scrapped its Eastern Mainline project, to add new gas pipeline and compression facilities to the existing system in Southern Ontario.)

New Brunswick Premier Blaine Higgs soon sought to revive Energy East, and discussed it with Trudeau. He quoted Trudeau as saying he’d be willing to discuss the issue again if Higgs was able to get Quebec onside. But Trans Canada repeated its announced decision.

Now, with Trump threatening tariffs, Nova Scotia Premier Tim Houston is calling on Ottawa to approve the Energy East oil pipeline. He said Trump’s tariffs mean here is “urgency” to strengthen the country through projects such as Energy East.

Earlier, commentator Brian Zinchuk of Pipeline Online urged: “If (Conservative leader Pierre) Poilievre wins a massive majority, can we PLEASE build the Energy East Pipeline?

Zinchuk added: “So what could a newly empowered government with a massive majority do? Here’s a novel idea: Call up TC Energy and ask them to dust off their 2014 application to build the Energy East Pipeline. We’re going to need it.”

Mackenzie Valley Pipeline

This project was first proposed in the early 1970s to move natural gas from the Beaufort Sea to northern Alberta, and then to tie in to existing gas pipelines there.

Ottawa launched in 1974 a federal inquiry into the project. After three years (and at a cost of $5.3-million) inquiry commissioner Thomas Berger said in 1977 that the 1,220-km pipeline should be postponed for 10 years, estimating that it would take that long for land claims to be settled and for Indigenous Peoples to be ready for the impact of such a project.

Eventually, after another six years of review, the Mackenzie Valley pipeline was granted federal approval in 2011, subject to 264 conditions.

But by 2017 the initially estimated costs of $8 billion had risen to $16.2 billion, and the joint-venture partnership of Imperial Oil, ConocoPhillips Canada, ExxonMobil Canada and the Aboriginal Pipeline Group announced abandonment of the project, citing natural gas prices – but also the long regulatory process.

Said an Imperial Oil official: “Our initial estimate for the timing for the regulatory process was somewhere between 22 and 24 months. We filed for regulatory approval in October 2004 and we received final regulatory approval in 2011. I’ll leave it up to you to decide if that is a reasonable amount of time for a significant capital investment project.”

Prince Rupert LNG

Shell Canada took over in 2016 the BG Group’s back-burnered 2012 proposal for an $11-billion LNG terminal on Ridley Island, Prince Rupert. It was to produce 21 million tonnes of LNG per year. But in 2017, Shell shelved the project.

That also killed the $9.6-billion Westcoast Connector pipeline proposed by Enbridge in 2012. This was to build an 850-km natural gas pipeline corridor from northeast B.C. to Ridley Island to feed gas to Prince Rupert LNG.

There followed recently some thought that this Westcoast Connector pipeline could be revived, to feed the Nisga’a Nation’s proposed Ksi Lisims LNG project, but Ksi Lisims chose to take over the Prince Rupert Gas Transmission pipeline (PRGT).

Pacific Northwest LNG

Pacific NorthWest LNG proposed in 2013 a $36-billion LNG-for-export plant on Lelu Island south of Prince Rupert BC.

It was to produce up to 20.5 million tonnes of LNG a year, and would include a marine terminal for loading LNG on to vessels for export to markets in Asia.

As ever, the proposal ran into opposition from environmental and some (but not all) Indigenous groups. And in 2017, Malaysia’s Petronas and its minority partners (China’s Sinopec, Japan’s JAPEX, Indian Oil Corporation and PetroleumBrunei) decided not to proceed.

They cited “changes in market conditions.” But CEO Mike Rose of Tourmaline Oil, Canada’s largest natural-gas producer, pointed a finger at governments, saying “government dithering” played a role in the cancellation.

“They [Petronas] kept getting held up. . . .  All levels of government were trying to squeeze more money out of them.”

Rose said a “more effective, streamlined approval process,” would have seen Petronas make a final investment decision on the project three years earlier, when LNG prices were much higher.

(Petronas continues to be a 25% partner in the LNG Canada project, which goes online later this year.)

The Pacific NorthWest LNG plant would have been fed by TC Energy’s 900-km Prince Rupert Gas Transmission pipeline (PRGT). The permits for that line now are owned by the Nisg̱a’a First Nation and partner Western LNG. They propose a route change so the line can feed the Nation’s planned Ksi Lisims LNG plant. The B.C. Environmental Assessment Office now is considering whether the pipeline’s permits are still valid.

Aurora LNG 

Nexen Energy, with Chinese and Japanese partners, proposed in 2014 the $28-billion Aurora LNG terminal on Digby Island, Prince Rupert. It would have produced up to 24 million tonnes of LNG a year. The partners ditched the plan in 2017, citing the economics.

WCC LNG

Exxon Mobil and Calgary-based Imperial Oil proposed in 2015 this $25-billion LNG export facility on Tuck Inlet, Prince Rupert. It was to produce some 30 million tonnes per year. The partners scrapped the project in 2018, without explanation.

Grassy Point LNG 

Australia’s Woodside Energy proposed in 2014 a $10-billion facility 30 km north of Prince Rupert, to produce up to 20 million tonnes of LNG per year. Woodside shelved the plan in 2018. It said it would focus instead on the Kitimat LNG project with Chevron Canada (but that also died on the drawing board.  (See ‘Kitimat LNG’ farther below)

Aspen oil sands 

An Imperial Oil project, proposed in 2013, was to produce up to 150,000 barrels of bitumen a day. The $7-billion project was put on hold in 2019.

Kwispaa LNG

Proposed in 2014, this was an $18-billion project for an LNG plant near Bamfield on Vancouver Island, with an associated natural-gas pipeline. It was to be developed by Steelhead LNG Corporation through a co-management partnership with the Huu-ay-aht First Nations. The plan was to produce 12 million tonnes a year, and later up to 24 million. Steelhead stopped work on it in 2019, and in 2022 Ottawa formally terminated the environmental-assessment window for the project.

Frontier Oil Sands 

Teck proposed this $20.6-billion mining project in Alberta’s oil sands in 2012, but gave up the idea in 2020. It would have had production capacity of about 260,000 barrels a day.

Kitimat LNG

Kitimat LNG was a $30-billion LNG-for-export plant at Kitimat BC, proposed in 2018 by Chevron Canada and Australia’s Woodside Energy. It was designed to produce up to 10 million tonnes of LNG a year.

Chevron sought to sell its share of the project but failed to find a buyer, and in the end Chevron and Woodside shelved the project in 2021.

Kitimat LNG would have been fed gas bv the proposed Pacific Trails Pipeline, a project by Chevron and Apache Corporation. Woodside Australia had bought Apache’s stake in the project for $2.75 billion in 2014. The pipeline plan has also been put away.

Goldboro LNG

Alberta energy company Pieridae proposed in 2011 an LNG plant on Nova Scotia’s east shore. The plan was to ship 10 million tonnes per year to Europe. But the project failed to win $925 million in federal funding, and Pieridae bailed out in 2021

Keystone XL 

The $8-billion Keystone XL pipeline was proposed in 2008 by TC Energy, to deliver Alberta oil to Nebraska, and then, through existing pipelines, to refineries on the U.S. Gulf Coast.

The project got its key U.S. presidential permit from then-president Donald Trump in 2017. Work eventually began in 2020, with the Alberta government kicking in $1.5 billion, and a promise of a $6-billion loan guarantee, in hopes of completion in 2023.

But under pressure from environmental groups, U.S. president Joe Biden revoked the permit on his first day in office on January 20, 2021, citing the “climate crisis.”

So this was, then, a rare Canadian project cancellation engineered by the U.S., not by Canada.

Énergie Saguenay

In 2015 came GNL Québec’s $20-billion proposal to build an LNG plant at the port of Saguenay in Quebec.

The Énergie Saguenay project, backed by Ruby Capital of the U.S., would connect to TC Energy’s Canadian Mainline, the big natural gas pipeline that carries gas from Western Canada to markets in Canada and the United States. The connection would be via a 780-km pipeline from northeastern Ontario to Saguenay, proposed by Gazoduq Inc.

Énergie Saguenay said its plant would produce 10.5 million tonnes of LNG a year. (The LNG Canada plant in B.C. will produce up to 14 million tonnes a year.) Énergie Saguenay said it would export its LNG via the St. Lawrence and Saguenay Rivers. It spoke of 140-165 shipments per year

The project raised considerable interest, as Germany, Latvia and Ukraine were expressing interest in importing Canadian LNG. Germany’s Chancellor Olaf Scholz came to Canada in the summer of 2022 and asked Trudeau about LNG exports.

Trudeau, though, said he saw no business case for LNG exports to Europe, and said Canada could always send natural gas to the U.S., where Americans could turn it into American LNG and send that to Europe. (This was already happening, and continues.)

In the end, the Quebec government, which initially supported Énergie Saguenay, changed its mind and pulled the plug on environmental grounds.

Then Steven Guilbeault, federal minister of environment and climate change, hammered home the final coffin nail in 2022, saying: “The Énergie Saguenay Project underwent a rigorous review that clearly demonstrates that the negative effects the project would have on the environment are in no way justifiable.”

That regulatory rejection has led to a $20.12-billion international damage claim against the federal government by Ruby Capital.

Bear Head LNG

Bear Head Energy planned in 2014 to build an LNG-for-export plant on the Strait of Canso, Nova Scotia.  It was to send 12 million tonnes a year to Europe. But in 2023 Bear Head, under new ownership, announced plans instead to produce hydrogen for export.

Port Edward LNG

Planning started in 2019 for this $450-million small-scale LNG project, for a site east of Port Edward BC. It was to ship LNG overseas in containers, but the project was scrapped in 2024.

Enbridge Line 5

Under appeal is a U.S. court order to shut down, by 2026, this pipeline that carries Canadian oil to Ontario, by way of Wisconsin and Michigan. In the court case, the  Wisconsin-based Bad River Band, through whose territory the pipeline runs, seeks to have it shut down.

A U.S. district court ordered Enbridge in 2023 to shut down parts of the pipeline within three years and pay the band $5.2 million for trespassing on its land. Enbridge is appealing (and so is the Bad River Band, which wants an immediate shutdown.)

What’s next?

While there has been a little chatter about reviving some of the scratched projects, there have been no formal proposals for resurrections, and Canada’s current attention is on Donald Trump and his promised tariffs in imports from Canada

On the political front in Canada, national Conservative leader Pierre Poilievre said in a recent speech in Vancouver: “By blocking pipelines and LNG plants in Canada, the Liberals have forced Canadians to sell almost all of our energy to the United States, giving President Trump massive leverage in making these tariff threats.”.

He said that that if he was prime minister, he would have approved pipelines such as Northern Gateway and Energy East, as well as giving fast-track approvals for LNG plants, thus giving Canada more export options.

And Poilievre promised to allow pipeline companies on First Nations lands to pay some of their federal tax to affected nations.

“Then these communities will have a very powerful incentive to say yes, and they can use some of that money to defeat poverty, build schools and hospitals and clean water and other essentials for their people.”

But now Canada has first to cope with Trump’s Fortress America economic-warfare plans.

Continue Reading

Trending

X