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$5.6B petrochemical plant planned for Prince George mark nielsen A Calgary-based company intends to build a $5.6-billion petrochemical plant in Prince George. Unveiling the plan Wednesday to about 50 people who attended a gathering at the Courtyard by Marriott, West Coast Olefins CEO Ken James said the company has secured a 300-acre site at the BCR Industrial Site to pursue the project. If all works out, a fully operating facility will be up and running by the end of 2023 and employ as many as 1,000 people in permanent, highly skilled jobs. The feedstock would be natural gas supplied via the Enbridge West Coast pipeline. “This will be the biggest project the city has ever seen,” said James, who lived in Prince George from 1974 to 1984 and highlighted the city’s access to the CN Rail line to An open house was held Aug. 7, 2019, for a proposed petrochemical plant in Prince George. | Brent Braaten Photo Prince Rupert, availability of land and proximity to the pipeline as maintaining the facility. Canadian natural gas, its price confident” that the project will go three reasons why the city was A recovery plant will take ethane, driven down by the shale gas ahead. That may seem pessimistic, chosen. propane, butane and natural gas revolution in the United States. he added, but noted that only one Steps still to be taken condensate from the natural gas He said a plant in Prince of the several liquified natural gas include clearing the provincial retrieved from the pipeline. In turn, George will have a $250 per tonne plants that have been proposed for environmental assessment an ethylene plant would produce advantage over product produced B.C. is progressing. process, which will include a one million tonnes per year of in the U.S. Gulf Coast and $50 to $75 “So I’m very confident,” James public consultation period. The polymer-grade ethylene and a per tonne on product produced in said and alluded a statement he project’s value components polyethylene plant would, in turn, Alberta. James said as many as five made during his presentation that will be submitted to the B.C. covert most of that ethylene into more petrochemical plants will be the level of cooperation he has had Environmental Assessment Office raw plastic that would be shipped built in B.C. over the next 20 to 30 from all levels of government rivals by the end of this year. to Asia where it would be used to years and added there is room for what he has seen in Alberta. Pending a final investment make finished products. three plants in total at West Coast Mayor Lyn Hall welcomed the decision at the end of 2020, The distance to Asia from Prince Olefins property at BCR. news, calling it a “game changer” construction at the site is to begin Rupert is about half that from “This will totally change the that will be good for the region as in spring 2021. the U.S. Gulf Coast, James noted. economy here,” he said. well as the city. And once operating, about $50 Another competitive advantage, In scrum with local media, million per year would be spent on said James, is a supply of cheap James said he is “over 50 per cent — Prince George Citizen

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WHAT IS THE FORT ST. JOHN PETROLEUM SOCIETY? The purposes of the society “Fort St John Petroleum Association” is to create a nonproﬁt fraternal organization for educational benevolent and social purposes.

• To create a medium through which the society members may express themselves in Social activities, Educational pursuits and Athletic endeavours. • To contribute to the community in supporting worthwhile projects as decided upon from time to time by the society. • To provide entertainment that is enjoyable, instructive and beneficial to its members and families. • To encourage a spirit of good fellowship among the society members VISIT http://fsjpetroleumassociation.com FOR MORE DETAILS

AUGUST 16, 2019

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Down they drop: Fort St. John Oilmen dunked 600 rubber duckies into the Peace River on Aug. 11, 2019, as part of the duck race held each Family Camping Weekend in August.

Climate change is here to stay, so let’s talk about it

limate change: those two words put together become highly charged and evoke a variety of emotions across the political spectrum and country. For many, it’s mere mention is the equivalent of stubbing your toe at your mother-in-law’s birthday party after a root canal. Digging through endless amounts of data and opinions will most certainly give you a headache, and maybe no further on taking a position. You may even consider another root canal instead of continuing your research. I will leave the pursuit for the right answer to experts with more letters behind their names and time on their hands. Nevertheless, climate change is now a significant

part of the energy conversation and will be for the foreseeable future. It doesn’t matter if you are a denier, believer, or an undecided — the world has laid climate change at the doorstep of the fossil fuel industry and rang the doorbell. It’s a choice we need to make in the midst of reshaping our industry. Either we go kicking a screaming or we be proactive and be part of the conversation. At this point, it seems to be wise, and displayed by major companies energy companies, to recognize the changing perception. Companies such as Canadian Natural Resources (CNRL), Shell and BP have changed course with their positions on climate change in recent years. CNRL going so far as setting a goal of

Chuck Fowler net zero emissions on their oil sands operations. Let that sink in for a minute — one of Canada’s largest producers is talking about net zero emissions. Now, let’s be clear: No one is advocating we shut in the wells , put the pipelines to bed, and throw in the towel. This would be both irresponsible and a major blow to our economy. What is reasonable to ask is for each of us to change the conversation

from the negative to our commitment as a country to environmental responsibility. Globally, we stand among the few that have outstanding environmental standards when developing our resources. This won’t change the mind of the gentleman strapped to a well head with a sign saying “leave it in the ground”; but, he is not the mind we need to change. The challenge has been, and will continue to be, showcasing our industry to average Joe and Jane. Carbon capture, downstream electrification, and other technological innovations not yet thought of have the capability to put us at very low GHG emissions — who knows, maybe even net zero. To the fairminded individual, a goal

to lowering our emissions and not dismantling an industry is both acceptable and achievable. Although a good rant on social media —“Let the hippies freeze”; or, “Where will they get their plastic?” — is therapeutic to some, it’s not helpful. In many cases, it’s just an exercise is preaching to the converted or having opposing views further entrenched. I’m proud of what we have as an industry and I’m confident we will rise to the challenge. Let’s limit the rants and root canals, and steer the conversation to what we all know to be true: Canada does it safer, cleaner, and more responsible than anyone else. Chuck Fowler lives and works in Fort St. John.

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PNN missiOn sTaTemenT Pipeline News North provides current, interesting, and relevant news and information about the oil and gas industry in Northeast B.C. and Northwest alberta. have an interesting story to share or a news lead? Email us at editor@ahnfsj.ca.

WILLIAM JULIAN REGIONAL MANAGER 250-785-5631 wjulian@ pipelinenewsnorth.ca

Fort st. John Petroleum President Dustin stirling hands art Jarvis the award for Oilman of the Year, aug, 10, 2019.

Fort st. John oilmen awarded MATT PREPROST MANAGING EDITOR 250-785-5631 C: 250-271-0724 editor@ ahnfsj.ca

RYAN WALLACE ADVERTISING MANAGER 250-785-5631 C: 250-261-1143 rwallace@ ahnfsj.ca

The Fort St. John Petroleum Association honoured two community members for their contributions to the oil and gas industry. Art Jarvis was named the 2019 Oilman of the Year for his exceptional dedication and service to the oil and gas industry. “It’s a great feeling to be selected by industry peers for such a prestigious recognition,” Jarvis said. “It’s a true honour to post my name alongside so many outstanding citizens of the community.” Jarvis is a key advocate and leader in Northeast B.C., and wears plenty of hats that keeps him at the table with industry, government, and the community. He’s involved with the Independent Contractors and Businesses Association, the Resource Municipalities Coalition, the Rural Roads Task Force, and Ducks Unlimited, advocating for better government policies, better roads, and conserving wetland habitats in the region. He’s also a long-time director for the Oilmen, delivering long-standing support to community groups, from schools to the hospital foundation, to community living, and many more. “It is extremely important to continue a thriving resource industry in B.C., for B.C., Canada and

the world,” Jarvis said. “I encourage young people to join groups, committees and organizations that do good in the community, the personal reward and opportunities that follow are endless. And by all means, get out and vote at election time… It does make a difference!” Dave Marshall received the Ivor Miller Award for his exceptional dedication and service to the Petroleum Association. Marshall, an associate member, has been key in helping to organize Oilmen events, including bonspiel and golf tournaments, and Christmas and New Year’s Eve parties. He’s also a major community supporter of the hospital foundation, “Dave took the requirements of associate member to the highest level. His attendance and countless hours of service to the club will always be remembered,” said Dustin Stirling, president of the Petroleum Association. The Oilmen are celebrated their 10th annual Family Camping Weekend Aug. 9 to 11, with a record 500-plus taking part down at Peace Island Park in Taylor, and with support from more than 200 sponsors. —PNN

BRENDA PIPER SALES ASSOCIATE 250-785-5631 bpiper@ ahnfsj.ca

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BILLING: Lisa Smith - Accounting Manager 250-562-2441 ext 352 Fax:250-960-2762 accounting@ pipelinenewsnorth.ca Fort st. John Petroleum President Dustin stirling hands Dave marshall his ivor miller award, aug, 10, 2019.

AUGUST 16, 2019

A Richmond city councillor says it’s “time to keep the planes on the ground” at the ever-growing Vancouver airport, and that he plans to fight his colleagues’ approval of a new pipeline to supply the facility with more jet fuel. Tensions were high Monday as councillors expressed their frustration at a jet fuel pipeline from southeast Richmond to the airport and a tank farm on the Fraser River being proposed by a consortium of airlines, the Vancouver Airport Fuel Facilities Corporation. Richmond Mayor Malcolm Brodie pointed out that nobody on council wanted the pipeline, but he was willing to support the agreement to access some Richmond roadways because it would bring significant benefits to the city and, also, because of legal advice that a rejection would most likely be over-ridden in the courts. Near the end of the meeting, when dealing with the development permit

for the marine terminal and tank farm, Brodie said if he could, he’d vote against it. Coun. Harold Steves said the pipeline issue had left a bad taste, because council was told at the beginning of the process they couldn’t offer any other solutions while he contended there would have been other options. “With this going ahead, I will guarantee you, I will fight every step of the way,” Steves said. “If you plan to fly a new plane out of that airport or do any airport expansion, it’s time to keep the planes on the ground.” The Vancouver airport saw recordbreaking traffic in 2018 — 25.9 million passengers, a milestone it says came two years earlier than expected. The airport’s operations accounts for $8.4 billion to the provincial GDP, and $1.4 billion in government revenues. —Richmond News, with files

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Suncor, CNRL decrease GHG intensity The GHG emissions intensity of Canada’s two largest oil and gas producers continues to trend downward. Both Suncor Energy and Canadian Natural Resources released sustainability reports highlighting data on environmental and safety performance, technology, community and supply chains. The companies both reported reductions in GHG emissions intensity on a corporate basis, or including all of their operated facilities worldwide. Suncor’s GHG intensity was 0.062 tonnes of CO2 equivalent per boe in 2018, approximately 10% lower than its intensity in 2014 of 0.069 tonnes of CO2 equivalent per boe.

Canadian Natural’s intensity was 0.052 tonnes of CO2 equivalent per boe in 2018, a 20% reduction from 2014, when it was 0.065 tonnes of CO2 equivalent per boe. Suncor said that the startup of its Fort Hills oilsands mine in January 2018 helped it reduce its GHG intensity from 0.063 tonnes of CO2 equivalent per boe in 2017. Fort Hills uses paraffinic froth treatment technology to produce a pipeline-spec crude that can be processed by refineries without additional processing. Suncor expects its GHG emissions intensity to drop further as Fort Hills operates at steady state design capacity.

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Richmond councillor vows to fight airport fuel supply line

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First Nations pipeline group leader courts B.C. elders The founder of an indigenous group that has made a preliminary proposal to Ottawa for a 51% stake in the Trans Mountain pipeline was in Vancouver last month speaking to the annual BC Elders Gathering. Delbert Wapass, former chief of the Thunderchild First Nation near North Battleford, Saskatchewan, is founder of the Project Reconciliation Group. He was in Vancouver Wednesday, July 24, to explain his proposal to B.C. elders. With 1,600 elders from more than 200 First Nations groups in B.C., Wapass said he thought the gathering was a good opportunity to explain what his project is all about. “It being ground zero, in terms of the Trans Mountain pipeline, I wanted to show them that respect and, with humility and humbleness, to come and present to them,” he told Business in Vancouver. Asked how his pitch went over, he said: “I felt good about the reception we got. There are those that were reserved, and there’s probably some in there that didn’t agree, but overall there was no negative reaction.” Project Reconciliation is one of three competing First Nations groups vying for a stake in the pipeline. One other is the Iron Coalition in Alberta. Closer to home, Mike LeBourdais of the Whispering Pines First Nation, leads the Western Indigenous Pipeline Group, which aims

Delbert Wapass, former chief of the Thunderchild First Nation in Saskatchewan, leads the Project Reconciliation pipeline group. | Submitted Photo

to secure part ownership for B.C. and Alberta First Nations along the pipeline route. In the past, LeBourdais has characterized Waspass and his group as “interlopers.” The First Nations Major Projects Coalition and Indian Resource Council have been working

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together to try to bring all the competing groups together. LeBourdais is travelling outside of B.C. and was unavailable to comment on whether his group is interested in a partnership with the other two First Nations groups. Wapass’ group has already made a preliminary proposal to the federal government. It proposes a 51% stake in the existing and expanded pipeline for $6.9 billion, which suggests the group expects the expansion to come in at around $9 billion. The group says it has the backing of a major tier 1 Canadian bank. Wapass said his group estimates that its 51% share of the profits from an expanded pipeline – after taxes, operating and other costs – would be $250 million to $270 million per year. Both Project Reconciliation and Western Indigenous Pipeline Group want in on the project before the expansion occurs, not after it is complete. Wapass thinks early ownership by First Nations will go a long way to de-risking the project. While the Trudeau government has confirmed it is open to First Nations taking an equity stake in the pipeline project, federal finance minister Bill Morneau recently told CBC that his government will likely wait until after the federal election in October before even considering some of the proposals. — Business in Vancouver

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Construction to start immediately on new $100m oil pipeline Inter Pipeline Ltd. says that it has commercial support in place to proceed with a new $100-million crude oil pipeline connecting production in east-central Alberta to the Edmonton market hub. The company says that construction will commence immediately on the new project, called the Viking Connector. The 75-kilometre, eight-inch diameter pipeline will connect Inter Pipeline’s Throne Station on its Bow River pipeline system near Coronation to its Central Alberta pipeline system near Stettler. The company says that as part of the project it will complete upgrades to the Throne Station, including reconfiguring existing tank storage and expanding truck offloading capacity. The new connection will provide economical access to the Edmonton market hub, which historically has been a

premium market for Alberta light oil products, Inter Pipeline CEO Christian Bayle said in a statement. “Producers in the Alberta Viking and surrounding plays are currently limited to pipeline services to the Hardisty hub or costly trucking alternatives,” he said. When completed, Inter Pipeline forecasts throughput volume of 10,000 to 15,000 bbls/d on the Viking Connector, with approximately one third of forecast shipments currently secured for a 10-year term. Additional term transportation agreements are under negotiation and contracted commitment levels may rise by the in-service date, the company said. The Viking Connector is expected to be completed in the first half of 2020. —JWN Energy

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Joey Podlubny/JWN Energy

‘Made In Canada’ Natural Gas:

Helping To Reduce Worldwide Pollution Crystal Rhyno Canada has the potential to help the worst polluters in the world get off coal with its abundant supply of natural gas. The country’s unofficial unique brand of producing the most responsible and ethical natural gas in the world could propel Canada into the role as a significant global player in the race to mitigate greenhouse gases. “LNG can have the greatest impact and greatest contribution to resolving the climate change problem and that should really be Canada’s main contribution because it can offset effectively higher intensity fuels,” says Tristan Goodman, president of the Explorers and Producers Association of Canada (EPAC) industry group. “The brand is there. The only issue that I am worried about

on the branding is it still has to be competitive. Nobody is going to buy our product if it is more expensive because of regulatory burden or uncertainty in getting it to a coast where you can export whether that coast is the East or West Coast.” Often praised as the clean energy source of the future, natural gas or super-cooled LNG could be the answer to reducing global emissions while displacing sources with higher carbon intensity. The International Energy Agency (IEA) expects the demand for natural gas to reach just over 4,100 billion cubic metres (bcm) in 2023, up from 3,740 bcm in 2017. With its population growth and long-term strategy to green its energy sources, China is expected to make up 40 per cent of the growth. China’s LNG imports continue to beat records.

“Natural gas is not the bridge fuel; it is the fuel,” the Chinese government has said. Gary Mar, Petroleum Services Association of Canada (PSAC) president, says: “If we could move natural gas to China we would do more to reducing the GHG emissions in the global atmosphere than if we shut down all the automobiles in Canada.” Late last year, LNG Canada along with its partners — Royal Dutch Shell plc, PETRONAS, PetroChina, Mitsubishi Corporation and Korea Gas Corporation — signed off on building an export facility in Kitimat, B.C. The $40-billion price tag makes the project the largest energy investment in Canadian history. Many see the investment as a much-needed boost to the battered oil and gas sector, representing opportunities to solidify Canada’s brand as a world

leader in delivering natural gas and reaching new markets. Expanding our horizons To realize how important a new industry such as LNG is to Canada, you need look no further than the newly formed LNG Narrative Group. This organization was formed by the Canadian Society for Unconventional Resources (CSUR), Resource Works, the Canadian Global Affairs Institute (CGAI) and JWN Energy (publishers of the Daily Oil Bulletin and jwnenergy.com). The purpose of this coalition is to prepare a compelling narrative to all Canadians on the importance of this transformative industry on behalf of all stakeholders — business, First Nations and government. Bill Whitelaw, president of JWN, recently observed the need to

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ensure that this new-generation industry does not suffer from well-organized external forces seeking to restrict and potentially eliminate Canada as a global energy producer. The coalition is committed to ensuring that all interests are at the table and that all voices are heard moving forward. For CSUR, this narrative means ensuring that the technology of how gas is explored for and subsequently produced is at the foreground and that fact-based and objective science is continually communicated. “We have the best drilling, completion, production and regulatory processes in the world,” said Dan Allan, the president and CEO of CSUR. “The rest of the world turns to us to learn and emulate. We need to be proud of our environmental performance in the production of our energy. We need to expand our markets beyond the United States and begin to have an impact on insatiable global energy requirements while contributing to the reduction of global GHG emissions that will incur as we displace other energy sources that are high carbon intensive.” Dinara Millington, vice-president of research for the Canadian Energy Research Institute (CERI), agrees that Canada needs to expand its market horizons beyond the U.S. “Historically it was fine,” she says. “That was how [the] market developed and the U.S. was the largest consumer of oil and gas. Things have changed. They are now our number one customer and number one competitor.” Millington says there is a lot of opportunity

out there but market access is a legitimate concern for all Canadian resources. “For us to be able to impact this dialogue, we really need to be visible on the global scene and we are not,” she says. “Canada does not have any LNG projects. Canada does not have any pipelines to tidewater that could really augment global trades and flow of the molecules. I think that really is number one. I think we need to really step it up and become a global player.” Bill Gwozd, who is part of a gas-focused industry group called the Centre for Gas and Liquids Monetization, adds that in order for the branding to succeed in helping Canada, there has to be a focus on education. “We have to have a role here in Canada — educate our own citizens,” he says. “We have maple syrup and mountains but we also have energy. We have to be more proactive on that.”

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This article is part of a new monthly editorial series “Canada, LNG and the natural gas economy.” This month’s article is supported by Bellatrix Exploration Ltd.

Energy transition brings new opportunities Susannah Pierce, external affairs director for LNG Canada, says it is important to recognize the world is in an energy transition to reduce greenhouse gases. “We have the things that can lead towards a pretty unique brand as it relates to generating low-carbon content energy, which then can be used to displace higher carbon content sources of energy,” says Pierce.

CONTINUED ON PAGE 10

Bellatrix Exploration Ltd. strongly supports the use of clean, reliable and abundant natural gas as the fuel source necessary to bridge the gap to renewable energy. We believe in advocating for Canadian natural gas and we are pleased to sponsor this article. We hope it will help you have positive, fact-based conversations with your peers on the benefits and uses of natural gas in our everyday lives. Bellatrix is proud to be a Canadian company responsibly developing our natural gas assets in west central Alberta. We love natural gas and we want you to as well! We welcome you to learn more about us at www.bxe.com, or on LinkedIn, Facebook and Twitter.

This initiative is also supported by the Canadian Society for Unconventional Resources (CSUR), which is a leading Canadian source of factual, unbiased technical information on the development of unconventional oil and gas resources.

“when you take LNG and transport it overseas and you use it to displace higher carbon content forms of energy like coal then you can see another significant net reduction.”

- Susannah pierce

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A drilling rig near Rolla, B.C., north of Dawson Creek.

Paris Agreement commitments are global in scope FROM PAGE NINE Under the Paris Agreement on climate change, countries may work together on implementing their nationally determined contributions (NDCs) to emission reduction. The agreement offers three approaches in the use of international co-operation mechanisms including direct new sustainable development, non-market based approaches and direct bilateral co-operation. The guidelines around bilateral co-operation are still being worked out, which could make it possible for emission reduction measures to be transferred to another and counted toward its NDC. “The fact that it was included in the Paris Agreement demonstrates there’s recognition that regionalized climate policies are not effective,” says Pierce. “I think recognizing if you are increasing emissions effectively, in other words, low carbon intensity, in order to displace higher intensity emissions someplace else, we ought to be looking at how do we recognize and incentivize that? Having absolute emission

targets doesn’t do anything if those emissions are high carbon intensity. There is recognition of a pathway but [let’s] get those agreements in place.” When you look at the full lifecycle emissions you can see that LNG produced in British Columbia will have significantly lower carbon emissions per tonne than when it is produced in other places, says Pierce. The average LNG facility globally emits between 0.26 to 0.35 tonnes of greenhouse gases (in CO2 equivalent terms) per tonne of LNG produced, while the LNG Canada facility is being designed to achieve levels of 0.15 tonnes of greenhouse gases per tonne of LNG produced, says Pierce. “Then when you take LNG and transport it overseas and you use it to displace higher carbon content forms of energy like coal then you can see another significant net reduction,” she says. “For countries that rely heavily on coal to produce electricity, the LNG from the B.C. project alone could reduce global CO2 emissions by 60 to 90 million tonnes per year,

which is more than the total annual emissions of British Columbia and roughly 10 per cent of Canada’s total annual emissions,” according to LNG Canada. Mark Pinney, manager of natural gas markets and transportation for the Canadian Association of Petroleum Producers (CAPP), says there is a strategic advantage for Canada to brand its energy as being responsibly developed, as well as a very clean burning fuel, expansive and a dependable resource. “We are well positioned to serve China and India,” he says. “Natural gas emits roughly half the CO2 equivalent of coal. There are huge savings. So for every billion cubic feet a day of LNG exports that we would have — let’s say to China — if you were to displace then the equivalent amount of coal in terms of electricity generation, you are looking at something like 18 million tonnes of CO2 equivalent emissions savings. It’s really helpful for them to improve not only from a GHG perspective but there’s other particulates that when you burn coal, that you don’t have with natural gas from [a] local air quality standpoint.”

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LNG CANADA

The average LNG facility globally emits between 0.26 to 0.35 tonnes of greenhouse gases per tonne of LNG produced. the LNG Canada facility is being designed to achieve levels of 0.15 tonnes of greenhouse gases per tonne of LNG produced. Taking the lead in branding Canadian natural gas Nearly 10 years ago the premiers of the three westernmost provinces began to explore opportunities to reduce the barriers to trade, investment and labour mobility across provincial lines. The result was the New West Partnership, an interprovincial marketplace, eliminating the trade obstacles among Alberta, British Columbia and Saskatchewan. Manitoba joined in 2016. CERI’s Millington says this is one example of a

successful collaboration between the provinces. “Alberta and British Columbia are very similar in terms of natural resources and [their] significant contribution to the local economies,” says Millington. “I think it would be in the best interests of both governments to sit down and find points of synergies they can expand further. This is beyond natural gas.” LNG Canada’s Pierce says all the parties have to come together in order to take the lead on a national brand for natural gas. She says it doesn’t work when one of the actors doesn’t come together. “You want to ensure you have governments

that recognize the importance of having a competitive industry and are able to achieve lower carbon emissions,” says Pierce. “And you want to have an industry that recognizes the importance of that as well. It’s a blend. “In our case at LNG Canada, we can be the lowest in terms of carbon intensity because we were able to get to a place that is also competitive. If we are not competitive we do not exist. If you can be competitive in industry and [have] low carbon intensity, then you are actually promoting the right thing. It has to work hand-in-hand with government, and industry working together on those things.”

• PIPELINE NEWS NORTH AUGUST 16, 2019

Seven Generations successful with first Montney ‘triple stack’ Seven Generations Energy says it is “highly encouraged” with results from a new approach to its Montney well pads. The company brought on its first so-called “triple stack” pad during the second quarter, adding a third layer of reservoir for development. The pad targets the Upper and Middle Montney, as well as the newer Lower Montney zone. Seven Generations reported production over the first 60 days from the stack’s Lower Montney wells at 1,467 boe/d, and 1,753 boe/d for the wells in the Upper and Middle Montney. The wells averaged 67 percent and 60 percent condensate, respectively. GMP FirstEnergy analyst Cody Kwong called the results “solid,” confirming the “robust economics” of Seven Generations Energy’s Nest

2 operating area and the potential of its triple stack developments “for inventory upside and superior financial/operational synergies from drilling three Montney layers off of a single shared pad.” Kwong noted that Seven Generations met or exceeded all of its operational and financial objectives for the second quarter, while spending 12 percent less capital than expected. Sales volumes averaged 201,800 boe/d, which the company noted was ahead of its guidance and up eight percent year-over-year. Seven Generations reported net income of $295.3 million for the second quarter, up from a $24.6 million net loss in Q2/2018. — JWN Energy

LNG Canada awards berth structure contract

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A joint venture of Brussels-based BESIX and Vancouver Pile Driving has been awarded a major contract for the LNG Canada project in Kitimat, B.C. JGC Fluor, the lead contractor on the $40-billion LNG export project, selected the BESIX Canada/Vanpile joint venture. Work will include the construction of a 500-meter-long quay wall, an LNG platform and all associated mooring and berthing structures, BESIX said in a statement. The contract also includes the construction of scour protection, roadways, foundations for buildings, electrical works as well as the

installation of marine equipment such as automated navigation aids. Construction will start in 2019 with the removal of the existing facilities, shoreline protection and current infrastructure. The work will be completed in 2021, the company said. LNG Canada joint venture partners Shell, PETRONAS, PetroChina, Mitsubishi and KOGAS officially handed off construction to JGC Fluor in April. The project is expected to start operating in 2024/2025. — JWN Energy

AUGUST 16, 2019

Scientists have long known that certain types of rocks react with carbon dioxide – a process accelerated when the rock is pulverized – and can sequester it for thousands of years. Given that that is what mine waste is – pulverized rocks – scientists with the University of BC are now working with three mining companies on demonstration projects that they say could sequester large amounts of CO2, by enhancing a natural process called carbon mineralization. “We estimate that reacting just 10% of a mine’s waste stream could be more than enough to offset the annual carbon emissions produced by a mining operation,” said Greg Dipple, project lead and professor at the Bradshaw Research Initiative for Minerals and Mining at UBC. UBC will work with the University of Alberta, Trent University, Institut national de la recherche scientifique (INRS) and the mining companies on two demonstration projects at mine sites in B.C. and the Northwest Territories. One project is a prospective nickel mine in B.C. The magnesium silicate found in mine waste from metal and diamond mines will naturally fix CO2 in a process called carbon mineralization, which creates a solid, cement-like mineral. The carbon can remain sequestered for thousands of years. Researchers have been working on technologies that help accelerate the mineralization process. At a mine in the Northwest Territories, CO2 will be directly captured from the mine’s power plant for mineral sequestration. In B.C., a pilot project will rely on drawing CO2 from the atmosphere. Laboratory experiments have demonstrated that the process can work fairly quickly. “We’ve achieved rapid carbonation within days to weeks in the lab,” said Dipple. “The challenge is to reproduce this success at large volumes in the field.” The demonstration project is being funded with $2 million from Natural Resources Canada, and another $1.2 million from De Beers Group, FPX Nickel Corp., Giga Metals Corp. and Geoscience BC. Dipple estimate that if all metal mines in the world used carbon mineralization for their mine waste, it could sequester 100 to 200 million tonnes of CO2 annually. — Business in Vancouver

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Social licence is a ‘phoney’ term, former NDP premier says Brian Zinchuk Social licence was a hot topic at the recent Williston Basin Petroleum Conference, with two former premiers speaking their mind on the subject. “We should never use that term ‘social licence’ again,” said former Saskatchewan Premier Brad Wall. “There’s a whole bunch of things implied by that term. First of all, that you don’t have it already, as a sector. You need to apply for it from someone. We really don’t know who is the issuer of the social licence. “We especially don’t know who the issuer is after the first Western Canadian foray to earnestly earn social licence, the Alberta carbon tax, resulted in precisely zero change in the environmental political support for a pipeline project.” Wall said it’s “not just a speaking point” to highlight to Canadians that social licence has long been paid by the oil and gas sector. “It’s paid in the taxes this industry has provided, to all of Canada. It’s paid in the direct support to transfer payments, that have quite literally ensured the survival and the viability of social programs. It’s paid for in the jobs that are created for Canadians. It’s paid for the taxes we’ve already talked about, both directly and indirectly,” he said. “That doesn’t mean, as a sector, that we ought not to be trying to better by the environment. But really, my view is we should separate these two things.” He went on, “We helped, as and industry, and I would say governments are to blame. I share in it. I was around for 10 years as Premier of Saskatchewan, the country’s second largest producer of oil. We have been very flatfooted. We have been not at all effective in telling the story that already exists about the sector, which would have earned whatever social licence implies, and maybe avoided some of the challenges they’ve faced

Gary Doer speaks at the 2019 Williston Basin Petroleum Conference. | Brian Zinchuk Photo

recently to get the right public policy and pipelines built in Canada.” Wall said Canadians are getting there on their own. “It’s not too late, for us as an industry, to demonstrate through action, technological advancements we talked about like pipeline integrity and carbon mitigation, but also to tell the true story. “It’s not too late for us to build support. We should call it that. It’s not a licence. It’s support.” He said when Canadians understand the significance of

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the resource and the realities of increasing global oil demand, “they do ask the very pragmatic Canadian question, if it’s not our oil because we can’t get a pipeline to tidewater, then whose is it? And from the list of competitor countries, Canadians are smart enough to realize that most of the countries we compete with probably aren’t as responsible, or as interested in the sustainability of the industry as we are.” Wall said his theory is that when Kinder Morgan’s Ian Anderson, president of Trans Mountain, gave the federal government a deadline

of May 31 last year, “The country started paying attention to this issue – of pipelines, of our oil and gas resource.” Poll after poll showed increasing support. “If we make our case to Canadians, and we if we demonstrate by our actions, we continue to demonstrate by our actions that we don’t just care about the environment, we have a plan to protect it, and a plan to reinvest in it and we rehabilitate it, I think we won’t need to ask for a licence for anybody. I think we’re going to see support grow.” Gary Doer, former Manitoba NDP premier and Canadian ambassador to the United States, said “social licence has almost become a strategy to get a veto, as opposed to get approval.” “Consultation with people affected, absolutely. It’s part of the due diligence process. In my way of thinking, it’s better to be done before you even propose something. You bring in engineers, lawyers, accountants proposing something. Know what the lay of the land ahead of time, through consultations,” he said. “My view is projects should be approved under the definition of public interest. It’s public interest which should determine the final outcome of these applications. “Energy is a public interest. Reliability, affordability of energy is a public interest. Clean air, clean water, is a public interest. To me the criteria for making decisions should be public interest. “I’m not sure what Brad said, but I’m sure he would be very upset about social licence, because it’s become a de facto veto for some people, which is unacceptable for the public interest of Canada, and in my view, is unacceptable to the people of Manitoba.” Doer added, “I find it’s a phoney term. Do you know what my problem with social licence is? It’s all social and no licence.” —Pipeline News

• PIPELINE NEWS NORTH

AUGUST 16, 2019

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