BC Oil & Gas Report 2021/2022

BRITISH COLUMBIA

2021-2022

il & Gas Report

Highlighting the different facets of B.C.’s oil and gas industry

PUBLICATIONS MAIL AGREEMENT #40934510

A new era of INNOVATION

Highlights from Budget 2021 Oil and gas restoration on the rise in B.C.

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IN THIS ISSUE Editor’s message......................................................................... 8 Message from the Premier of British Columbia................................ 10 Oil and gas restoration on the rise in Northeast B.C......................... 11 Net-zero heroes

Canada joins U.S. in developing emission-reduction strategies..... 12 Budget 2021:

A recovery plan for jobs, growth, and resilience.............................. 14 Cedar LNG Project to develop the largest

Indiginous Nation-owned LNG facility in Canada............................ 15 Building momentum toward a diverse energy future...................... 16 On the cover:

GeoVerra, stronger together............................................................... 18 Protecting birds during construction................................................. 20 LNG isn’t dead yet............................................................................... 22 Boilermakers poised for post-COVID recovery

and innovation in oil and gas development...................................... 24 Index to advertisers............................................................................. 27

B.C. Oil & Gas Report is published by

DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5 President & CEO DAVID LANGSTAFF Associate Publisher SHAYNA WIWIERSKI shayna@delcommunications.com Managing Editor TAMMY SCHUSTER tammy@delcommunications.com Sales Manager DAYNA OULION Account Representatives BRENT ASTROPE | BRIAN GEROW JENNIFER HEBERT | MIC PATERSON ANTHONY ROMEO PRODUCTION SERVICES provided by S.G. Bennett Marketing Services www.sgbennett.com Creative Director / Design KATHLEEN CABLE Contributing Writers CHRIS BLOOMER JOSIAH HAYNES RICHARD MacINTOSH © 2021 DEL Communications Inc. All rights reserved. Contents may not be reproduced­by any means, in whole or in part, without the prior written permission of the publisher.

While every effort has been made to ensure the accuracy­of the information contained herein and the reliability of the source, the publisher­ in no way guarantees nor warrants­the information­and is not responsible­for errors, omissions or statements­made by advertisers.

Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees.

Publications Mail Agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba R3L 0G5 Email: david@delcommunications.com

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B.C. OIL & GAS REPORT • 2021-2022

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Message from the

editor

“W

e are entering an exciting era of innovation.” A quote taken from Premier John Horgan’s message (page 10) for this issue of the B.C. Oil and Gas Report provides an optimistic view on embracing change and standing up to challenges.

In the 2021/2022 B.C. Oil and Gas Report, we hear from the province’s energy regulator, the B.C. Oil and Gas Commission, on the oil and gas restoration process and its efforts to meet and improve British Columbia’s energy and environmental goals. We hear from the Canadian Energy Pipeline Association about the momentum that is building across the energy sector and the optimism that is growing in the transmission pipeline industry. This issue also provides information on the proposed Cedar LNG Project, the first Indigenous majority owned LNG export facility in Canada, and Trans Mountain’s efforts to protect birds and wildlife during construction of their pipeline expansion project.

I hope you enjoy this issue of the B.C. Oil and Gas Report, and please contact us if you have any questions, comments, or ideas.

Tammy

8

B.C. OIL & GAS REPORT • 2021-2022

@DELCommInc. n

B.C. OIL & GAS REPORT • 2021-2022

9

Message from

JOHN HORGAN, PREMIER OF BRITISH COLUMBIA

Innovation will make British Columbia a global leader in climate solutions

W

e are entering an exciting era of innovation. We

Oil & Gas Methane Emissions Research Collaborative assists

do so out of necessity, as we are reminded daily of

government and industry with research as we maintain an

the effects of climate change. Our CleanBC plan is

environmentally responsible oil and gas sector.

guiding us to use more clean and renewable energy

in fuelling our industry. For a better future for our children and grandchildren, we need an all-hands-on-deck approach to decarbonize the energy sector.

That is exactly what we are doing. Launching in the fall, the new Centre for Innovation and Clean Energy will bring together industry, governments, academics, and innovators.

The centre, announced in July with initial joint funding from the federal and provincial governments and Shell Canada, will

We know that the transition towards clean energy won’t happen overnight. Our government continues to support responsible resource development while reducing greenhouse gas emissions.

British Columbia continues to be a global leader in Liquid Natural Gas, charting a course for the future of the industry.

LNG Canada’s $40-billion export facility in Kitimat is the largest private infrastructure project in Canadian history.

be a catalyst for new partnerships in the commercialization of

LNG Canada and the Coastal GasLink pipeline employ nearly

B.C.-based clean-energy technologies.

5,000 people in the province’s North. Those are good-paying,

The centre will drive emission-reducing initiatives. The initial

family-supporting jobs for hard-working people. Those projects allow us to build a strong economy for the future – one that

focus will be on carbon capture, utilization and storage, as well

benefits all people in all regions of our beautiful province, while

as on the production of low-carbon hydrogen, biofuels and

protecting the environment.

synthetic fuels, renewable natural gas, and battery technology and storage.

This is a province where people are hopeful and optimistic.

We embrace change and are unafraid of finding new solutions

The Centre for Innovation and Clean Energy is the latest step

to old problems. I am certain British Columbia will become a

in our government’s plan to come out of COVID-19 stronger,

global exporter of climate solutions.

with an inclusive, sustainable, and innovative economy.

Climate change is the great challenge of our age. We need We are also working with the Climate Secretariat and the Oil

everyone at the table as we shift from a reliance on fossil fuels

and Gas Commission to develop world-leading regulations and

to low-carbon energy, and I know British Columbians are up to

technologies to tackle harmful methane emissions. The BC

the task. n

10 B.C. OIL & GAS REPORT • 2021-2022

Oil and gas restoration on the rise in Northeast B.C.

A

s a regulator of the oil, gas, and

with more wells decommissioned than

orphan restoration pilot projects with

geothermal industry, one of the

drilled due to provincial and federal

Treaty 8 communities, providing

BC Oil and Gas Commission’s

policies aimed at keeping crews working

opportunities for community knowledge

(the “Commission”) main

through the COVID-19 pandemic. In

to be employed in project work. These

jobs is to protect the environment.

addition to the planned $30 million

pilot projects have led to established

From exploration, development, and

collected from levies on oil and gas

working relationships with Indigenous

operations all the way to restoration, the

operators to restore orphan sites, B.C.

services providers.

Commission oversees works to meet

received $15 million from the federal

and improve British Columbia’s energy

government’s COVID-19 stimulus

and environmental goals.

package in April 2020 to address

If an operator of oil and gas sites such as

additional orphan site restoration.

wells, facilities, pipelines, and associated

Last year, the Commission created an

were reclaimed. Between April 2021 and

areas affected by oil and gas activities

online web portal where 80 orphan

March 2022, approximately 475 projects

is insolvent or cannot be located, the

sites were nominated and evaluated for

are planned on orphan sites.

sites may be designated as orphans by

funding. Two were nominated by local

the Commission. Once designated, the

governments, seven by land owners,

Commission’s Orphan Site Reclamation

and 71 nominated by Indigenous

Fund is used to address risks to public

communities. This provided key

safety and carry out clean-up and

stakeholders a say in which sites are

closure.

restored.

Restoring a site is a multi-year process.

Working with Indigenous communities

rely on. For more information on orphan

First, a well is decommissioned, which

is an important part of the Commission’s

sites, please visit the Commission’s

refers to the permanent plugging of a

efforts. Work that includes implementing

Orphan Sites page at www.bcogc.ca. n

Between April 2020 and March 2021, almost 100 wells were decommissioned, more than 90 equipment sites were decommissioned, and more than 60 sites

The Commission is committed to protecting public safety, safeguarding the environment and respecting those affected by oil and gas activity, and strives to bring balance between the landscape we love and the energy we

well and removing the wellhead, while site decommissioning means any surface equipment has been removed from the site. Reclamation is the replacement of soils and revegetation, which after monitoring, has met all necessary requirements and is eligible for a Certificate of Restoration. The restoration process provides assurance to stakeholders that the site has been restored in accordance with current standards and requirements, and all known contamination risks or other hazards have been mitigated.

Over the last few years, the Commission has made significant progress decommissioning over half of British Columbia’s 742 orphan sites. Significant restoration advances were made in 2020 B.C. OIL & GAS REPORT • 2021-2022

11

Net-Zero heroes

Canada joins U.S. in developing emission reduction strategies

C

anada is set to join the U.S. in establishing a platform

its greenhouse gas emissions (GHGs) by 40 to 45 per cent

to examine how oil and gas producing countries can

below 2005 levels by 2030 and move forward on a path to

support the implementation of the Paris Agreement on

reach net-zero emissions by 2050.

climate change; the goal of which is to achieve net-

zero emissions by 2050.

“The world is increasing climate ambitions and Canada will lead the way,” said O’Regan. “We’re the fourth-largest

The Minister of Natural Resources Seamus O’Regan, Jr. made

producer of oil and gas in the world. It’s the biggest part of

the announcement days after President Joe Biden held the

our economy.”

Leaders’ Summit on Climate in April.

The forum will discuss ways to improve methane abatement, “We’ll be working with the United States and other oil and gas–producing countries to find and share solutions to reach our climate targets,” said O’Regan.

advance the circular carbon economy approach, develop and deploy clean-energy and carbon capture, use and storage technologies, and diversify from reliance on hydrocarbon

The newly formed Net-Zero Producers Forum is intended

revenues, along with other measures in line with each

to develop emission reduction strategies and would include

country’s national circumstances. Canada has already

Canada, Norway, Qatar, Saudi Arabia and the United States,

introduced a world-leading price on pollution, which is

which collectively account for approximately 40 per cent of

helping to reduce GHGs and invest in the clean energy future.

global oil and gas production.

“We have hundreds of thousands of workers who know how

The decision to join the Net-Zero Producers Forum followed

to build energy infrastructure,” said O’Regan. “They’ll be the

an announcement by the Government of Canada to reduce

ones to lower emissions and build our clean energy future.” n

12 B.C. OIL & GAS REPORT • 2021-2022

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13

BUDGET 2021

T

he Federal budget released in

A recovery plan for jobs, growth, and resilience

April covered many of the year’s

Federal budget provides funding for new apprenticeship service and supports skilled trades

Red Seal trades, the incentive will be

recession. The budget’s objective is to

Beginning this year, the federal

persons with disabilities.

put people first, create jobs, grow the

government’s budget makes a $470

middle class, set businesses on track

million investment over three years that

for long-term growth, and ensure that

will help employers recruit and train

Canada’s future is healthier, greener,

workers to help meet the increasing

more equitable, and more prosperous.

demand for skilled trades workers,

burning issues with the top priority being the health and

safety of Canadians while addressing the wounds created by the COVID-19

Budget 2021 is a plan to bridge Canadians and Canadian businesses through the crisis and toward a robust recovery. The budget will support almost 500,000 new training and work opportunities including 215,000 opportunities for youth, support businesses in the most affected sectors, and accelerate investment in digital

and it includes a new service to help connect apprentices with employers.

Employment and Social Development Canada is establishing the new Apprenticeship Service which will help 55,000 first-year apprentices in

doubled to $10,000 for employers who hire those underrepresented, including women, racialized Canadians, and

The budget also states various sectors such as construction, clean energy, and healthcare are growing rapidly but struggling to find workers to fill positions. It proposes to deliver $960 million over three years for a new Sectoral Workforce Solutions Program to help train and reskill people and help businesses recruit and retain a diverse and inclusive workforce.

construction and manufacturing Red

This investment will help connect up

Seal trades connect with opportunities

to 90,000 Canadians with the training

at small- and medium-sized employers.

required to access employment in sectors where employers are seeking

transformation of small and medium-

The budget states that employers are

sized businesses. Budget 2021 is a plan

eligible to receive up to $5,000 for all

that puts the government on track to

first-year apprenticeship opportunities

To read more about Federal Budget

meet its commitment to create 1 million

to pay for up-front costs such as salaries

2021 and all of its new programs and

jobs by the end of the year.

and training. To promote diversity in the

incentives, visit www.canada.ca. n

14 B.C. OIL & GAS REPORT • 2021-2022

skilled workers.

Cedar LNG Project to develop the largest Indigenous Nation-owned LNG facility in Canada

T

he Cedar LNG Project (Project)

gas will be treated and chilled to -162ºC,

potential effects of the project and

is a proposed floating liquefied

which changes it from a gas to a liquid.

determine whether the Project is in the

natural gas (FLNG) facility in

The LNG will then be loaded onto an

public interest. The EA process also

Kitimat, British Columbia, within

LNG carrier, approximately every seven

the traditional territory of the Haisla

to 10 days or up to 50 times a year. Each

Nation. By using an innovative design

LNG carrier will travel through Douglas

philosophy that fits the facility into

Channel to Hecate Straight, using the

provides the Cedar LNG project team many opportunities to share information about the project and gather input from

existing deep-water shipping lane, on

the local community and Indigenous

its way to customers in the Asia Pacific.

Nations, the public, government, and

local community and environment while

The Project will create jobs, contracting,

other key stakeholders.

building a project that will produce

and other economic opportunities for

Pending approvals and other

industry-leading, low-carbon, low-cost

the Haisla people, the local community

authorizations, a final investment

the local environment, the Cedar LNG Project will minimize the impact to the

Canadian LNG for customers around the world.

and Indigenous Nations, and the region.

Up to 500* people will be working at the Cedar LNG site at the peak of

decision for the Cedar LNG Project is anticipated in 2023, with commercial operations beginning in 2027.

The Cedar LNG Project will be the first

construction. Approximately 100*

Indigenous majority owned LNG export

people will be working at the facility

For more information and to follow

facility in Canada, which provides

full-time during operation.

progress, visit cedarlng.com.

unprecedented opportunities for the

The Cedar LNG Project is undergoing

Haisla Nation and the region. The

an environmental assessment (EA)

Xa’is’la or Haisla have occupied their

by both the provincial and federal

traditional territories in Northwestern

governments, which will assess the

*2020 estimates based upon preliminary engineering.

Source: Cedar LNG. n

British Columbia for more than 9,000 years. The Project is a key element of the Haisla Nation’s economic and social development strategy and will further advance reconciliation by allowing the Haisla Nation to—for the first time ever— directly own and participate in a major industrial development in its territory.

Natural gas, which is the same gas that is used to heat homes and businesses throughout the province, will be delivered to the project site through an approximately eight-kilometre pipeline that connects to the Coastal GasLink pipeline. At the project site, the natural

The Cedar LNG Project is located approximately eight kilometres southwest of Kitimat town centre and approximately three kilometres across Douglas Channel from Kitimaat Village.

B.C. OIL & GAS REPORT • 2021-2022

15

Building momentum toward a diverse energy future

SUBMITTED BY CHRIS BLOOMER, PRESIDENT AND CEO OF THE CANADIAN ENERGY PIPELINE ASSOCIATION

T

hat momentum is building across

evolves, it will take time to ensure

strategy estimates hydrogen could

the energy sector. Optimism

those new sources are reliable, resilient,

deliver up to 30 per cent of Canada’s

is growing in the transmission

sustainable, and affordable.

end-use energy by 2050. Momentum is

pipeline industry. We are evolving,

building in this area as well, with the

innovating, and continuously improving

The pipeline industry is a critical part

to help shape a diverse energy future for

of the energy mix, safely transporting

Canada and the world. A future where

responsibly produced natural gas and

all energy options are on the table,

oil that Canada and the world need.

including renewables, natural gas and

CEPA members are working hard to

All that hydrogen will need to be

oil.

reduce their environmental footprint by

safely transported from producing

reducing emissions and developing new

Evolving energy mix Striking a balanced energy mix will

technologies that are changing the way Canada produces and delivers energy.

recent announcement of a multi-billion dollar net-zero hydrogen complex in Edmonton.

regions to markets, and pipelines are the safest and most cost-efficient way to do that. Research is underway to

Hydrogen: Fuel of the future

determine how much hydrogen current

endeavours to reach its goal of net

A tremendous global effort is underway

improvements need to be made to

zero emissions by 2050. As new energy

to expand the use of emerging fuels,

ensure the safest transport and storage

sources emerge and the energy mix

such as hydrogen. Canada’s hydrogen

of hydrogen.

be critical as the economy recovers from the global pandemic and Canada

16 B.C. OIL & GAS REPORT • 2021-2022

pipeline systems can manage and what

A tremendous global effort is underway to expand the use of emerging fuels, such as hydrogen. Canada’s hydrogen strategy estimates hydrogen could deliver up to 30 per cent of Canada’s end-use energy by 2050.

Carbon capture, utilization, and storage innovations

deep underground. The Alberta Carbon this – transporting carbon dioxide (CO2)

With oil prices on the rise, the end of

Carbon capture, utilization and storage

from capture sites to mature oil fields in

the pandemic in sight, and advances

(CCUS) is also building momentum in

Central Alberta for secure storage and

in green technologies, there are many

Canada and around the world as a way

enhanced oil recovery projects. It can

reasons to be optimistic.

to significantly reduce greenhouse gas

transport up to 14.6 million tonnes of

emissions. The process of capturing,

CO2 per year, which is the equivalent of

Momentum is building for a diverse

transporting, using, and storing

the emissions of 3 million cars. Pembina

and inclusive energy future – a future

greenhouse gas emissions is being

Pipeline and TC Energy also recently

where pipelines will continue to deliver

put into play on a global scale and the

announced the Alberta Carbon Grid –

the energy you need in the safest, most

technology is advancing rapidly.

a world-scale carbon transportation

responsible way.

Trunk Line system is an example of

Optimistic about momentum

and sequestration system, which will Pipelines play a crucial role in CCUS, as

connect Alberta’s largest sources of

Read more about new technologies,

they are used to transport the carbon

industrial emissions to a sequestration

emerging fuels, and other research at

dioxide from facilities to be sequestered

location.

www.aboutpipelines.com/en/blog. n

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17

Stronger together How the merging of the geomatics divisions of two of Canada’s leading professional consulting firms created a powerhouse for the surveying industry had their own expertise and we’ve been able to benefit from each other’s differences and grow together.”

When the firm combined forces with WSP and Altus, there was another great strength that came to the table: the team’s reach. The capacity of GeoVerra’s geographic region spans from the very tip of the west coast of British Columbia to Ontario — including 26 offices — and encompasses all of the resources and skills necessary to get the job done while allowing teams to respond in real-time to the needs of their clients.

That great capacity also means GeoVerra has been able to continue to service large-scale and high-profile projects, such as the Trans Mountain Expansion Project. The largest project in the pipeline’s history entails installing approximately 980 kilometres of new pipeline.

With thousands of kilometres of experience in pipeline construction and integrity, GeoVerra is able to keep complex projects moving on time and on budget at all stages using preconstruction, construction, and post-construction services.

Gosling is passionate about new technologies that GeoVerra offers and how they can help a project succeed. “That’s what geomatics is,” he says. “The technology changes on a yearly

A

basis and we’re always learning new things.” Newer, faster little over a year ago, a transaction between Altus

GPS innovations and 3D modelling allow for more thorough

Group and WSP Canada resulted in two of Canada’s

project planning, pipeline integrity, certainty within a project,

geomatics divisions merging to form GeoVerra. The

and more.

surveying company has since been thriving as one of

Canada’s leading land surveying companies.

But when it comes to what really sets GeoVerra apart, relationship building is front and centre. “It comes down to

This comes as no surprise as GeoVerra is the result of two

our experience and our client-focused values as well as our

seasoned firms combining their strengths. “It has allowed us to

employee-focused values,” says Gosling.

be more nimble and operate as a traditional survey company,” says David Gosling, Vice President, British Columbia for

GeoVerra is built on something the firm calls the partnership

GeoVerra. “We can react quickly to client’s demands and

promise. It’s a commitment as industry experts to provide

requirements,” he says of the land surveying, mapping, forestry,

responsive, trustworthy service with a solutions-oriented

environmental and advanced technology firm. “Each group

approach. This promise extends beyond what GeoVerra does

18 B.C. OIL & GAS REPORT • 2021-2022

for its clients — it’s applied internally as well. It shows up in

with the Canadian Council of Aboriginal Business and

the form of work ethic, teamwork, safety, and general support

ECO Canada’s Building Environmental Aboriginal Human

for the GeoVerra family.

Resources program, providing employment and training

That’s a big part of what has kept Gosling — who has been with the company for 16 years starting with Waberski Darrow Survey Group, followed by Focus, and ending up at WSP — with the firm for so long. “I work with a great team and I enjoy the people.”

opportunities to Indigenous communities across Canada.

About GeoVerra One of the country’s leading geomatics firms, GeoVerra is built on years of combined experience and expertise providing land surveying, mapping, forestry, environmental

Beyond the client-employee relationships, GeoVerra builds

and advanced technology solutions across diverse

mutually beneficial partnerships with Indigenous communities

industries. It’s where the capacity to handle large-scale,

across Canada on land surveying, environmental, and forestry

high-profile projects meets the responsiveness and agility

projects. Fostering those partnerships in the early stages,

of 26 local offices across Canada. Learn more at

GeoVerra pushes that commitment further by partnering

www.geoverra.com. n

A partner you can count on in an ever-changing world.

Surveying Utility Line Locating Construction and Integrity 3D Laser Scanning and UAV Forestry and Environmental Mobile Mapping and GIS Emissions Monitoring Bathymetric Surveys geoverra.com / (250) 787-0300 B.C. OIL & GAS REPORT • 2021-2022

19

Protecting birds during construction SUBMITTED BY TRANS MOUNTAIN

A

t Trans Mountain, we take our commitment to

The Pipeline EPP provides site-specific information pertaining

environmental protection seriously. As part of the

to the environmental and socio-economic setting for

Expansion Project, substantial work has gone into

each location on the construction footprint, as well as any

determining potential environmental impacts and

terrestrial features and wildlife that are present.

mitigation methods to reduce the impact to the environment.

Our goal is to protect the environment, have as little impact as

Mitigating impacts to migratory birds

possible and, where possible, ensure we are returning the land

Trans Mountain has developed policies and procedures for

to its original function.

the protection of migratory birds and their habitat. These measures were developed using guidance documents

Since 2012, our environmental team has been out in the field

produced by Environment and Climate Change Canada

studying a wide range of environmental features, including

(ECCC), the Canadian Wildlife Service, and industry best

wildlife, species at risk, fish, plants, soils, archeology and

practice, and have been extensively reviewed and approved

traditional land use. Following the field studies, we conducted

by federal and provincial regulatory authorities. These

extensive analysis to predict the potential effects associated

documents were prepared in consultation with stakeholders

with the Project and this information was used to develop our

and communities in the areas where we are planning to

environmental plans.

conduct work.

Trans Mountain has developed more than 60 environmental

In Canada, the general nesting period for migratory birds may

protection and management plans relating to specific aspects

start as early as mid-March and extend until late August.

of construction. These plans have been approved by the

However, in the Lower Mainland some species, such as the

Canada Energy Regulator (CER) and the BC Environmental

Anna’s Hummingbird and Song Sparrow, can begin nesting in

Assessment Office (EAO) and must be implemented before,

February. In the event that clearing or construction activities

during, and after construction along the pipeline right-of-way,

are scheduled to commence within the nesting period, a

at facilities and related access areas. Trans Mountain’s plans

Wildlife Resource Specialist (WRS) is consulted to determine

are in addition to regulations, codes, and standards set out by

the need to conduct a non-intrusive area search for evidence

federal and provincial regulators.

of nesting (e.g., presence of territorial males, alarm calls, distraction displays, adults carrying nesting material/food).

What types of plans does Trans Mountain have in place for wildlife mitigation during construction?

If a need is determined, daily inspection for nests takes place

Trans Mountain’s Pipeline Environmental Protection Plan

appropriate buffers around the nests are marked and roped off

(EPP) is a CER-approved comprehensive compilation of

until the bird has left the nest.

environmental protection procedures, mitigation measures,

Additionally, as part of our Pipeline EPP, there are several

and monitoring commitments related to pipeline construction.

management plans detailing mitigation measures relating to

20 B.C. OIL & GAS REPORT • 2021-2022

in the area each morning by a WRS. If a nest is observed,

wildlife listed under Schedule 1 of the Species at Risk Act. There are specific mitigation plans in place for Sowaqua Spotted Owl, Barn Owl, Williamson’s Sapsucker and Lewis’s Woodpecker, and Western Screech-Owl.

Protection of birds and nests during construction Trans Mountain has implemented significant programs and procedures to protect birds and their nests and follows all applicable guidelines. Mitigation measures include the use of non-intrusive nest sweeps and the establishment of species-specific buffer zones around active nests to ensure

zone is marked by flagging tape so it’s clearly visible and all

our construction activities have the least impact possible on

activity within the buffer zone is halted until confirmation is

nesting birds.

received from the WRS that the nest is no longer active.

Buffer zones for active nests are marked by flagging tape so

The Trans Mountain Expansion Project involves installing

they are clearly visible. Trees and vegetation within the buffer

approximately 980 kilometres of new pipeline twinning the

zone where active nests are present are not cut down until

existing Trans Mountain pipeline, Canada’s only pipeline

confirmation is received from the WRS that the nest is no

system transporting oil products to the West Coast. The

longer active.

project includes 12 new pump stations, 19 new tanks added to

Can a bird nest be relocated?

existing storage terminals, and three new berths at Westridge Marine Terminal in Burnaby, B.C. Once in service, expected in

For most migratory bird species, removing the nest after the

December 2022, pipeline capacity will go from approximately

breeding season will have no effect on the ability of birds

300,000 to 890,000 barrels per day. n

to nest again. The great majority build or occupy new nests each year. However, some species may reuse the same nest structure year after year.

In 2017, as part of preparation for site construction work at Westridge Marine Terminal in Burnaby, B.C., an eagle’s nest was identified near the southeast boundary of the terminal close to future construction activities. Trans Mountain cooperatively engaged with the Ministry of Forests, Lands, Natural Resource Operations and Rural Development and local raptor specialists to develop a detailed Eagle Nest Mitigation Plan.

In 2018, the pair of eagles successfully nested and had offspring in an artificial nest platform that was built by a local raptor specialist as part of that plan. In 2019, our team observed the eagles had built their own nest in a new location in a forested area east of the terminal away from construction activities and in 2020 and 2021, our WRS confirmed successful nesting activities of this breeding pair.

What happens if a nest is discovered after tree clearing has begun?

If a nest is discovered after clearing has begun, work immediately stops in the area and a WRS is consulted on the appropriate buffer to protect the nesting bird. The buffer B.C. OIL & GAS REPORT • 2021-2022

21

LNG isn’t dead yet B.C.’s LNG era is far from over

BY JOSIAH HAYNES

I

f you read the July article published in the National

For one, it’s about twice as efficient as coal, producing twice

Observer heralding the end of LNG, you might be

as much energy. That’s an important consideration since

reminded of a famous scene from the iconic movie, Monty

these LNG facilities are built for export to coal-dependent

Python and the Holy Grail.

Asia, especially China.

Many of the same people who oppose liquified natural gas (LNG) also oppose hydroelectric projects—two of the most efficient and cleanest forms of affordable, baseload energy.

Often, they do so not for any credible environmental reason but for political or ideological purposes. They want LNG to be dead.

The fact that it’s not, the fact that it’s growing and represents a once-in-a-generation climate and economic opportunity for B.C. is lost on them.

Natural gas produces less CO2 and other greenhouse gases (GHGs) per tonne than coal. In fact, substituting all coal consumed in power generation for natural gas would reduce global CO2 emissions by 1,200 megatonnes.

The energy production process often results in a leakage of methane into the air. A US Department of Energy study showed remarkably low methane leakage for natural gas (roughly 0.4 per cent of production), while other studies found unconventional wells with numbers up to 1.65 per cent.

And so, through protest and activism, they try to kill LNG to

Yet general numbers are closer to 1.4 per cent. Regardless,

prove it’s dead. And yet B.C.’s LNG opportunity is just getting

the consensus is that a leakage rate under 3.2 per cent will

started.

maintain the climate benefits of natural gas.

The province’s first LNG overseas export facilities are in

B.C.’s clean LNG bona fides are further bolstered in that

progress. The titanic LNG Canada is under construction.

some of B.C.’s greatest LNG operations will be run off the

Cedar LNG with the Haisla Nation and Woodfibre LNG near

hydroelectric power grid, significantly reducing the amount of

Squamish are in the proposal and investment decision phase.

GHG’s produced through the LNG cooling process.

These facilities are supported by Coastal Gas Link and Eagle Mountain - Woodfibre Gas Pipeline, new and expanded LNG

LNG Canada, for example, says GHG emissions from its

pipelines.

Kitimat operation will be lower than any facility currently

Meanwhile, B.C.’s Nisga’a Nation has announced its plans for Ksi Lisims LNG in partnership with Rockies LNG Partnership and Western LNG. The LNG export facility, worth $55 billion, would be constructed in B.C.’s coastal far north, in Wil Milit.

Even if you leave aside the economic case, the fact is that LNG is part of the climate-solution mix. When produced responsibly and regulated with care, liquified natural gas is a positive change agent for the global energy transformation.

22 B.C. OIL & GAS REPORT • 2021-2022

operating anywhere in the world today: 35 per cent lower than the world’s best-performing facilities and 60 per cent lower than the global weighted average.

Meanwhile, Nisga’a’s hydro-powered Ksi Lisims LNG says it will be at net zero within three years of start-up. And Cedar LNG, a proposal led by the Haisla Nation, offers “one of the lowest carbon intensity LNG facilities in the world.”

Not to mention natural gas and LNG producers like Shell —

B.C.’s clean LNG bona fides are further bolstered in that some of B.C.’s greatest LNG operations will be run off the hydroelectric power grid, significantly reducing the amount of GHG’s produced through the LNG cooling process.

a major partner of LNG Canada — have also begun to use

2025, China will have more than 30 LNG terminals able to

carbon credits to achieve carbon-neutral LNG. Carbon-neutral

handle a total of nearly 200 million tonnes of imported LNG,

LNG could make up half the industry by 2030.

more than double the current capacity.

The world is quickly seeing LNG’s potential, in terms of

At the same time, the major LNG producing nation of Qatar

efficiency and reduced emissions. The worldwide shipping

is spending $43 billion to become the world’s top exporter of

industry, for example, has targeted LNG as a cleaner fuel than

LNG and world shippers of LNG have ordered more than 30

oil-based bunkering fuel. In June alone, global shippers placed

new and big LNG carriers.

a record 33 orders for LNG-powered ships, bringing year-todate orders to 128 vessels.

So, whatever the critics say, LNG is clearly and absolutely “not dead yet.”

Markets are demanding clean, efficient, and affordable energy.

In fact, global LNG trade grew during the pandemic. US LNG

Josiah Haynes is a writing and research coordinator at the

exports hit a record high in the first half of this year, and by

Resource Works Society. n

Two is stronger than one.

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B.C. OIL & GAS REPORT • 2021-2022

23

Boilermakers poised for post-COVID recovery and innovation in oil and gas development

BY RICHARD MACINTOSH

A boilermaker welder at work.

As the nation moves toward economic

terminals, and storage tanks that are at

at Prince Rupert, and Burnaby’s oil

recovery from the devastating

the heart of the energy sector.

refinery. On top of our work in the oil

COVID-19 pandemic, the oil and gas industry in British Columbia must

Our union has earned a reputation as a

and gas economy, Boilermakers also ply their trade in hydroelectric power,

position itself to lead the way. Before

leader in skills training for its members.

the pandemic, in 2018–19, the industry

Lodge 359 works in tandem with its

created 56,549 highly skilled and valued

educational partner BCIT to provide the

direct and indirect jobs in the province.

highest quality training from foundation

It paid $555 million in royalties and

level through managed apprenticeship

Boilermakers are forward looking.

crown land sales over the same period,

and right up to Red Seal qualification.

Acknowledging that Canada must

and spent $3.9 billion on exploration

The Lodge ensures ongoing, career-long

continue to strive towards harnessing

and development in 2018.

skills upgrading at its state-of-the-art

more renewable and carbon-neutral

training centre.

energy solutions, Boilermakers are

The International Brotherhood of

pulp and paper, mining, shipyards, petrochemicals, and the cement industry.

under no misconceptions that we will

Boilermakers (IBB) has been a valuable

That top training has allowed

partner in the development of B.C.’s

Boilermakers to be instrumental

natural resources sector ever since the

partners in building and maintaining

founding of its mainland B.C. Lodge

B.C.’s natural resource infrastructure,

359 – 75 years ago. The union’s highly

including recent projects like the TMX

Canadians, in vast numbers, agree and

skilled workers build, maintain, repair,

plant in Burnaby, the gas plants in B.C.’s

support further development of our

and revamp the industrial plants,

northeast, the massive storage spheres

natural resources. This spring, an online

24 B.C. OIL & GAS REPORT • 2021-2022

transition to renewables within the next 30 to 50 years. For decades to come, oil and gas will be in demand.

CONSTRUCTION, MAINTENANCE, OR SHUTDOWN: YOU NEED BOILERMAKERS. You need the best in skills and training.

The Boilermakers operate one of the most strenuous apprenticeship programs in the skilled trades.

And we don’t stop there.

In concert with our major employers, our National Training Trust Fund keeps Boilermakers at the top of their game throughout their careers, as tools and technologies change.

You need the right people for the job.

Our unique Job-Ready dispatch system ensures that we send you Boilermakers with the expertise and qualifications needed for the specific project. Our system gives us the ability to dispatch Boilermakers from across Canada, in timely fashion.

You need a safe and injury-free jobsite.

We Boilermakers take safety training seriously, and our co-operative approach in tandem with our employers shows it.

Keeping safety as a core Boilermaker value saves time, money, and lives.

You need to stay on schedule and on budget.

Canada’s economy sometimes suffers from a shortage of skilled tradespeople. Working with the Boilermakers is your key to avoiding these shortages and getting your project finished on time and on budget.

INTERNATIONAL BROTHERHOOD OF BOILERMAKERS

|

boilermakers359.org 778-369-3590

Boilermakers constructing the walls of a fuel storage tank.

...we must also look to the future and to our climatechange responsibilities, so we have become leading proponents of innovative technologies like carbon capture, utilization, and storage (CCUS) that will allow us to bridge to a cleaner energy future.

As part of the nation’s efforts to decarbonize our economy, Boilermakers fully encourage the province to step up development of our clean hydrogen potential, an estimated $15 billion per year opportunity. Already, in Alberta, an alliance of oil firms will replace natural gas with hydrogen to produce steam for bitumen processing, and the CO2 emissions from the hydrogen extraction process will be captured and transported via the Alberta Carbon Trunk Line (ACTL) to permanent underground storage, which Boilermakers proudly helped to make a reality.

Ipsos poll conducted for Resource Works

innovative technologies like carbon

and the Task Force on Real Jobs, Real

capture, utilization, and storage (CCUS)

Excited by the prospects offered

Recovery found that 81 per cent of

that will allow us to bridge to a cleaner

by these and other innovations,

Canadians feel that “natural resource

energy future. We’ve built and retrofitted

Boilermakers remain poised and at the

development is good for Canada,”

several CCUS plants in Canada already,

ready to assist B.C.’s oil and gas industry

while 83 per cent agree that “Canada’s

and we know it is a proven technology

as we emerge together from the shadow

natural resource sector is an important

that can remove almost all CO2 from the

of the COVID-19 crisis and into a bright

contributor to the Canadian economy

fuel processing that we will need well

new future.

today.”

into the future.

Boilermakers know that, while

We’ve also embraced the move toward

Representative of the International

maintaining a strong oil and gas

liquid natural gas (LNG) development

Brotherhood of Boilermakers union,

sector will be key to our economic

and have been involved in constructing

and the IBB’s Assistant International

viability for a long time to come, we

the large LNG tanks at the cutting-

Director of Climate Change Policy

must also look to the future and to our

edge Kitimat project, as well as those

Solutions for its M.O.R.E. Work

climate-change responsibilities, so we

at Tilbury in Delta and Mount Hayes on

Investment Fund. He is based in Surrey,

have become leading proponents of

Vancouver Island.

B.C. n

Richard MacIntosh is an International

26 B.C. OIL & GAS REPORT • 2021-2022

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