PNN NOV 2021 by Pipeline News North

PIPELINE The Pipeline News North

NEWS NORTH

Serving the Oil and Gas Industry in Northern B.C. and Alberta

November 2021

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Canadian oil and gas companies reach for net zero Nelson Bennett nbennett@biv.com Canadian officials attending the 26th Conference of Parties (COP) summit in Glasgow will be pledging to reduce Canada’s greenhouse gas emissions by 40% to 45% by 2030 and getting to zero emissions by 2050. While policies like carbon taxes are big levers that the government can pull, achieving a 40% reduction in emissions in nine years is a Herculean task that will require the private sector to be on board. “The burden really falls heavily on … oil and gas and transportation,” Werner Antweiler, a business economics professor at the University of British Columbia’s Sauder School of Business. “It’s really the oil and gas sector that really stands out because that’s the one sector where we’ve seen emissions going up.” A number of Canadian oil and gas companies have signed commitments to reach net zero by 2050. In B.C., FortisBC has a “30BY30” strategy that aims to reduce its greenhouse gas emissions 30% by 2030, largely through increased

use of renewable natural gas (RNG) made from biological waste. The company is aiming to have 5% of its natural gas supply in B.C. composed of RNG by 2025 and 15% by 2030. Teck Resources – B.C.’s biggest mining company – is among the 29 mining majors to sign the International Council on Mining and Metals’ (ICMM) net zero by 2050 pledge. Teck’s sustainability plan includes a target of a 33% emissions reduction by 2030 and carbon neutrality by 2050. To put some teeth into its sustainability commitments, Teck recently announced a US$4 billion “sustainabilitylinked revolving credit facility” that will be tied to meeting, or failing to meet, its environment, social and corporate governance goals. Other mining companies that have signed the ICMM net zero pledge and have operations in B.C. include Rio Tinto Plc, which operates the BC Works aluminum smelter in Kitimat, and Newcrest Mining, which owns the Red Chris mine. For mining, the biggest gains in reducing emissions

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would be from sourcing power for their operations from non-emitting sources such as renewables or small modular nuclear power plants and by electrifying haul trucks, shovels and other heavy equipment. Globally, mining produces 4% to 7% of greenhouse gas emissions, according to the McKinsey Global Institute. The greenhouse gas emissions that mining produces in Canada pale in comparison to those of oil and gas, which represent 26% of Canada’s total. In July, five of Canada’s biggest oil companies – Canadian Natural Resources, Cenovus Energy, Imperial Oil, MEG Energy,

“You can see the magnitude. So even if you want to go to a 30% reduction or 40% reduction in this sector, you need a whole lot more of carbon capture and storage.” Prime Minister Justin Trudeau’s government is proposing a new tax credit that would encourage investment in CCS, but Antweiler said the key tool is carbon pricing. “If the carbon price isn’t high enough, you have to crank it up higher, and then the firms will work towards avoiding paying that tax and invest in carbon capture and storage.”

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and Suncor Energy – signed the Oil Sands Pathways to Net Zero Initiative. The five companies are responsible for 90% of Canada’s oilsands production. Canadian pipeline operator Enbridge has likewise committed to net zero by 2050. Shell Canada expects to sanction the new Polaris CCS project in 2023 and have it operating by 2025. It would have a sequestration capacity of 300 million tonnes of CO2 over the plant’s lifetime. Antweiler pointed out that the Quest facility captures about one MT of CO2e annually, whereas Canada’s oil and gas sector produces about 190 MT CO2e per year.

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The Pipeline News North , NOVEMBER 18, 2021

New research assesses NEBC for wastewater storage potential A new research report and data set provide detail on potentially suitable geologic storage for wastewater from natural gas operations in northeast British Columbia’s (NEBC) Montney Play region. Deciding where to place a disposal well can be a complex process, especially in northeast BC’s maturing Western Canada Sedimentary Basin, where suitable disposal zones are increasingly difficult to find. The Wastewater Disposal in the Maturing Montney Play Fairway of NEBC project includes 10 conclusions and eight recommendations. This includes that of 13 formations assessed, seven are potentially suitable for wastewater disposal. Each of these seven formations was mapped to highlight areas within them where wastewater disposal may be appropriate. Research lead Dr. Brad Hayes said: “This report and accompanying data provide essential new knowledge about potentially suitable locations for disposal of wastewater from

Feedback sought on royalties

natural gas operations in the Montney Play region. It can be used by the regulator, operators, governments, community leaders and Indigenous groups to make informed, evidence-based decisions about continued natural gas development and to guide future research.” “The BC Oil and Gas Commission is highly appreciative of the work by Geoscience BC and the report authors in providing information that supports safe and effective deep disposal,” said Ron Stefik, Supervisor, Reservoir Engineering. “The Commission has undertaken significant improvements in regulation and data collection of this activity, which the report supports, and it will be a valuable reference in identifying opportunities for sustainable development.” The independent, peer-reviewed research addresses wastewater disposal knowledge gaps in the Montney Play region identified by the Scientific Hydraulic Fracturing Review Panel, operators, and the BC Oil and Gas Commission. It integrates hydrogeology,

The province is asking residents to share their opinion on the future of an oil and gas royalty system. Last month, an independent assessment examining the royalty scheme found it was “broken” and required an overhaul. The government says it triggered a review of the royalty program so British Columbians get a fair return

geomechanics, reservoir characterization (including petrophysics), and structural geology to evaluate suitable wastewater disposal zones below the base of usable groundwater. A new public report and data from Geoscience BC energy research will help to improve models that predict induced seismicity through the use of machine learning techniques applied to northeast British Columbia’s Montney Play. The project is one of a series of four research projects started in December 2019 to further investigate how and why, in certain circumstances, earthquakes can be caused by hydraulic fracturing and wastewater disposal during natural gas development. A key finding of the Development of an Induced Seismicity Susceptibility Framework and Map for NEBC using an Integrated Machine Learning and Mechanistic Validation Approach project is that local geological conditions are more important than the operational features. Led by University of British

on oil and natural gas revenue. In a Nov. 10 discussion paper offering background and three proposed options for a renewed system, the province states that growing natural gas production has made achieving oil and gas emission reduction targets “a challenge.” Instead of addressing the emissions gap through a new royalty

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Columbia Professor of Geological Engineering Dr. Erik Eberhardt, the project combined multiple data sets in a machine learning and advanced numerical analysis review, together with laboratory rock data and numerical simulations, to model the relationship between natural gas well hydraulic completions, geology and seismic activity in the Montney Play. Geoscience BC Executive Vice President & Chief Scientific Officer Carlos Salas said: “Along with other projects in our induced seismicity program, this research is generating ever-improving information to guide regulators and the natural gas sector to help assess risk from hydraulic fracturing and wastewater disposal operations. The same information is also being shared with communities and Indigenous groups to help to answer their questions.” A final report and data are accompanied by maps showing which areas are more likely susceptible to induced seismicity. Learn more at geosciencebc.com.

program, carbon pricing and new technologies should lead the way, says the Ministry of Energy. Residents can share their thoughts through the EngageBC web portal open to Dec. 10, 2021. Results will be made public in the new year, with an overhauled program set to roll out by the spring.

NOVEMBER 18, 2021, The Pipeline News North

Baker Hughes, the American oilfield services company, which has a market cap of US$26 billion, is taking a 20% stake in Burnaby-based clean-tech start-up Ekona Power. Ekona has been developing a methane pyrolysis process for making “turquoise” hydrogen from natural gas without the need for carbon capture and storage. It is a process that falls somewhere between green hydrogen, made from electrolysis using water and electricity, and blue hydrogen, made from natural gas with carbon capture and storage (CCS). Ekona’s process requires no CCS, which means lower capital and operating costs. “Compared to the traditional steam methane reforming process used for producing industrial scale hydrogen, Ekona’s novel methane pyrolysis process can produce hydrogen with drastically lower carbon dioxide emissions,” Baker Hughes said in a press release. Baker Hughes is an industrial service company specializing in oil and gas. The company has been expanding into clean energy sectors, including carbon capture and storage and hydrogen production. Ekona CEO Chris Reid would not disclose the value of the Baker Hughes investment, but said it was just the first tranche of a series A round, with more to come in December. “The financing that was announced with Baker Hughes is our first close of our series A,” Reid told BIV News. “So we’re going to do a second close of our series A. “There will be a pile of these strategic partners, which will go right across the globe. There will be oil companies, gas companies, there will be large steel production companies, large industrial hydrogen users, large Asian trading house companies -- that kind of thing.” Ekona plans to build a pilot plant and commission it by 2024. A location has not been chosen yet. Reid said methane pyrolysis is cheaper than both green hydrogen, which has very high energy input costs, and blue hydrogen. Whereas the cost of producing green hydrogen through electrolysis is anywhere from $3 to $5 per kilogram, and blue hydrogen $2 to

$2.20 per kilogram, Reid said Ekona Power should be able to produce it at $1.30 to $1.40 per kilogram. The reason it’s cheaper is that there are no capital or operating costs associated with carbon capture and storage. “Electrolyzers are just fundamentally too expensive to provide large-scale dispatchable hydrogen,” Reid said. The methane pyrolysis method Ekona uses produces a byproduct called “thermal black” or “carbon black,” which is essentially solid carbon. It can be used as a filler in tires and other rubber products. That’s not a market Ekona Power is going after, however. It may be that the solid carbon ends up being landfilled. The main product will be hydrogen, the market for which is expected to grow from US$120 billion to US$300 billion by 2027, according to Global Market Insights. There are conventional industrial uses for hydrogen, but the push for decarbonisation is expected to grow the market for hydrogen as a low carbon fuel. Alberta, which already produces “grey” hydrogen from natural gas (with no carbon capture) is positioning itself to become a major blue hydrogen producer. Because the demand for hydrogen is expected to be significant, Reid said he expects there will still be plenty of opportunities for blue hydrogen as well. “There will be room for both, for sure,” Reid said. One advantage, he said, of the Ekona process is that, because it doesn’t require a big CCS plant, it can be situated anywhere in the chain – from the upstream, where natural gas is produced, to an LNG receiving terminal. Reid said turquoise hydrogen production is a perfect fit for the LNG sector. LNG could become a carrier for hydrogen. LNG offloaded in Japan, for example, could then be turned into hydrogen and solid carbon using an Ekona Power plant, without having to invest in a CCS plant. “We are in the camp that the cheapest and fastest way to convert the world over to clean chemical fuels is to continue to use that infrastructure, continue to use natural gas as a hydrogen carrier – it’s the best hydrogen carrier we have – and then process it,” Reid said.

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Strong case for Canadian gas in decarbonization Nelson Bennett nbennett@biv.com If the energy crisis currently gripping Europe and China has anything to teach the world about energy transitions, it’s the importance of natural gas, which the Intergovernmental Panel on Climate Change (IPCC) calls a “bridge technology” for decarbonizing electricity. When Canadian officials address COP26 later this month, one thing they need not apologize for is the natural gas that Canada produces. While its production contributes to Canada’s greenhouse gases (GHG), it is already helping decarbonize Alberta’s electrical grid, and as Canada develops as a liquefied natural gas (LNG) exporter, it can help other countries lower their emissions by using LNG to displace coal power and backstop unreliable wind power. Nor do Canadian officials need to worry that Canadian natural gas or LNG projects will become stranded assets, because the demand for gas and LNG is expected to continue to grow for at least another decade, especially in Asia. Use of natural gas and LNG has broken records in Europe and Asia, due to insufficient natural gas storage capacity and an unusually windless summer in Europe that reduced wind power production. “We’re seeing price increases, but we’re not seeing the kind of volatility that you’re seeing in the European market because we have a much stabler gas infrastructure and gas supply system in North America,” Tim Egan, president of the Canadian Gas Association, said at a recent Canada West Foundation webinar on the energy crisis in Europe and Asia. Canada has an abundance of natural gas, which can fill gaps in the energy transition. Its biggest problem is the methane emissions associated with natural gas production, something that can be addressed through government regulation, best practices and good engineering. Acknowledging that natural gas is a lower-carbon alternative to coal, the IPCC cites it as one of the seven “pathways” for reducing energy production

province of bc

B.C. Energy Minister Bruce Ralston and Minister George Chow meet with Korea Gas Corporation in March 2019. The ministers also toured the KOGAS Incheon LNG terminal - one of the largest in the world and will one day be a receiving point for B.C. LNG. emissions. The ability of natural gas to reduce greenhouse gas emissions when displacing coal has already been measured in Alberta, which is said to be on track to be coalfree by 2023 – seven years ahead of the federal government’s 2030 target. GHG emissions from power generation in Alberta fell 10 megatonnes (MT) in a single year (from 2017 to 2018), thanks to switching coal plants to natural gas, according to the Pembina Institute’s Coal To Clean report, which was released last week. Natural gas not only provides an immediate 50% to 60% reduction in GHG emissions when it replaces coal power, it is also one of the best backstops for intermittent renewable energy for countries that don’t have large amounts of hydro or nuclear power. Nuclear power provides good emissions-free base-load electricity, but it can’t ramp up and down quickly the way natural gas plants can. Although the International Energy Agency (IEA) recently projected that declining fossil fuel demand may mean that no new large LNG projects will be needed once those under construction come online (LNG Canada, for example), there is a strong demand for natural gas and LNG in the medium term. “Natural gas demand increases in all scenarios over the next five years, but there are sharp divergences after this,” the IEA states in its 2021 World Energy Outlook. While natural gas use for home heating is expected to decline in developed countries, its use for power generation is expected to increase in regions like Asia.

If currently announced policies are adhered to, the IEA projects demand for gas in China would be 40% higher in 2030 than in 2020. In “announced policy” scenarios, the increase in demand globally would be just 5% between 2020 and 2030. In more aggressive net-zero pledges, the demand for gas would fall in all regions, “except those that are currently heavily reliant on coal, where it largely displaces coal.” That would include much of Asia, notably China – the market that B.C. LNG would be well situated, geographically, to supply. “I would suggest that we need to keep more gas than maybe the IEA suggested for security,” said Chris Bataille, a Simon Fraser University sustainable energy expert and IPCC Working Group 3 contributor. “But we have to get it out of the ground, move it down the pipe and move it to its final point of use in a much less leaky way than we’re doing it today. It’s quite clear that wind and solar are going to be the cheapest bulk energy sources going forward, but you can’t run just wind and solar. You need some sort of firm energy source.” As for the natural gas methane problem, Canada has signed the Global Methane Pledge to reduce methane emissions by 30% below 2020 levels by 2030, and the gas produced in B.C. is already some of the world’s least methane intensive. In addition, electricity powers natural gas processing in B.C., which means that LNG exported from the province would have one of the lowest carbon intensities in the world.

ROOFING & SIDING PNG inks RNG deal METAL METAL ROOFING & SIDING NOW DOING RE-ROOFS AND NEW INSTALLS NOVEMBER 18, 2021, The Pipeline News North

Nelson Bennett nbennett@biv.com Pacific Northern Gas, which supplies natural gas to homes and businesses in Northern B.C., has inked a deal with ATCO in Alberta to supply it with renewable natural gas (RNG). Chemically, RNG is no different than fossil natural gas, it’s basically methane, except that it is made from organic sources, making it renewable. It is the home heating equivalent of the biofuels added to gasoline and diesel to lower its carbon content. Customers of FortisBC already can opt to pay a premium to buy RNG, and the utility’s plan is to achieve a 30% reduction in its customers’ greenhouse gas profile by 2030, mostly by increasing the amount of RNG injected into its system. Earlier this week, FortisBC announced three new projects that will add to FortisBC’s RNG supply by 800,000 gigajoules. The three new sources will be from food waste from EverGen’s Net Zero Waste Project in Abbotsford, agricultural waste from Faromor CNG Corp., in Ontario and wastewater operations collected from Shell Energy North America in Iowa. Now Pacific Northern Gas (PNG) also plans to inject RNG into its system. It has signed a 15-year supply agreement with

ATCO Future Fuel RNG Limited Partnership to supply up to 230,000 gigajoules per year of RNG from ATCO’s new Two Hills RNG plant near Vegreville, Alberta. The plant makes RNG from agricultural and municipal organic waste. The annual RNG supply is enough to provide space and water heating for 2,300 homes, PNG said in a press release. The company estimates that would reduce the CO2 emissions intensity of its gas by 20,000 tonnes of CO2 per year. PNG serves 42,000 residential, commercial and industrial customers in B.C., from Prince Rupert to Fort St. John. “Our goal is to shrink our environmental footprint while continuing to deliver safe, reliable energy,” PNG president Leigh Ann Shoji-Lee said in a news release. “Our new, renewable energy option is part of our commitment to operating sustainably for the benefit of the environment and the communities where our customers and employees live and work.” Since RNG is more costly to produce than regular natural gas, FortisBC charges a premium for it, paid on a voluntary basis by customers who want to reduce their carbon footprints. It’s not clear whether PNG will also charge a premium.

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The Pipeline News North

West Coast Olefins projects update Hanna Petersen hpetersen@pgcitizen.ca Prince George city council received an update on two proposed West Coast Olefins projects within the city boundaries. While one project proposed by West Coast Olefins has been cancelled, another project remains on the table but is outside of the city’s jurisdiction. Deanna Wasnik, director of planning and development, explained during city council’s Nov. 8 meeting that the company’s Ethylene Plant Project, which was to be located in the BCR site, has been cancelled and withdrawn from the regulatory process. The company first announced the $5.6 billion Ethylene Plant Project in July 2019, which was intended to produce polyethene in plastic pellet form which could then be shipped to Asia using the CN Rail line to Prince Rupert. The withdrawal of this project has been confirmed by the Government of British Columbia Environmental Assessment Office. However, the company is moving forward with its proposed NGL Recovery project, which would be located on a 320-acre parcel of land on the eastern edge of the city in Pineview. This project would be divided into four components including an extraction plant, access road, NGL pipeline, and separation plan. Wasnik explained that although portions of the NGL Recovery Project are located within the city’s boundaries, the regulatory body at this stage of the project is the BC Oil and Gas Commission (OGC). The Agricultural Land Commission (ALC) is the regulatory body for the portions of the project located in the Regional District of Fraser-Fort George (RDFFG) since the lands in question are designated within the Agricultural Land Reserve. “Should the ALC support the project components, an

, NOVE

Map of a proposed area for a natural gas liquid recovery project near Prince George. official community plan and zoning bylaw amendment would be required by the Regional District prior to the establishment of the extraction plant,” explained Wasnik. Coun. Cori Ramsay also noted that because the portion of land within the city’s jurisdiction is already zoned appropriately the matter will not be coming back to Prince George city council. “The land on the city side of the project is already zoned for this and it will not be coming back to council for our consideration, the only piece that is going to local government is the extraction plant on the Regional District side, which they will be discussing on Nov. 18,” added Coun. Kyle Sampson. Mayor Hall said he’s received a tremendous amount of questions regarding the role of council in this project and highlighted the fact

that the land is within the Regional District’s purview – although the mayor and three city councillors sit on the regional district board of directors. “On that board we carry one individual vote,” said Hall, adding that over the last few months he’s heard misinformation that directors have more than one single vote. “We have no more than one single vote per director and I will also say that the Mayor does not carry the day. I have one vote as do my board colleagues.” Hall added that when this issue comes to the regional district meeting on Nov. 18, the directors will be dealing with the ALC process and then moving on from there. “We take this business very seriously and so each one of us comes into this room having done a tremendous amount of homework and we know the issues inside and out and we are in that same

position when we go over to the regional district,” added Hall. Earlier in the meeting, Paul Tiefense, president of the BC Resources Coalition presented to council regarding the proposed West Coast Olefins projects. He said he was concerned regarding a request from the Environmental Law Centre at the University of Victoria to refer the West Coast Olefins project to an independent panel of experts. In September, Dr. Marie Hay and Dr. Annie Booth, representatives from Too Close 2 Home, spoke to council against the project citing a litany of health concerns linked to similar complexes elsewhere. Although the ethylene project has now been cancelled, Pineview area residents have also been vocal in their opposition against the NGL Recovery Project. “All we want to do is make

sure that when we have an Environmental Assessment (EA) process we stick to an EA process,” said Tiefense. “We just need to get going and we need to try it and all of us need to be responsible in making sure it is environmentally conscious and socially acceptable.” He said he was concerned that projects are being stopped before they even reach the EA stage. “We have to be diligent about following the process,” added Tiefense. Hall added that it’s important for the city that Prince George is a place considered by developers and investors. “It is a myriad of folks that we want to have consider Prince George as a great place to invest whatever that business might be. We know full well there is going to be regulation in industry projects. We get that and we are familiar with that. It is part of the process,” said Hall. “We can work within those parameters.”

NOVEMBER 18, 2021, The Pipeline News North

CAOEC look forward to working with Federal Cabinet Ministers through energy transitions The Canadian Association of Energy Contractors (CAOEC) congratulates all members of the federal cabinet appointed on October 26. “The CAOEC looks forward to continuing to work together with the federal government and newly appointed cabinet ministers to advance Canada’s best-in-class energy industry,” says CAOEC CEO Mark Scholz. Canada’s energy services sector is a willing partner in the global energy transition and is dedicated to constant innovation. The energy transition will undoubtedly be a technical challenge, but is a great economic opportunity for those who want to contribute in Canada’s role as a global energy leader.

oil and gas, development of new and emerging alternate energy resources such as hydrogen and geothermal, and support for carbon capture, utilization and storage (CCUS), Canada’s resource workers and communities can have longterm success through the energy transition. “The Canadian energy industry is ready to play a major part in producing net-zero energy for the global market. We have the tools, technology, and know-how to help meet emissions targets,” explains Scholz. “Canada can satisfy global demand for low-carbon energy if there are continued opportunities and appropriate policies put in place to support the success of our energy industry and its workers.”

With the production of cleaner

The electrification of mining by Canada’s Oil Innovation Alliance

Sands

An array of innovation, everything from automated truck fleets to artificial intelligence, is significantly reducing greenhouse gas emissions, boosting safety and efficiency, and lowering operating costs across mine sites in Canada and around the world. In Alberta, about 20 per cent of the oil sands is shallow enough to be mined and innovation success here is delivering a wide range of environmental and economic benefits. One focus for COSIA members in COSIA’s Greenhouse Gases Environmental Priority Area is how mine materials are handled. “Materials handling is a big part of mining and a significant cost for the industry,” explains Anthony Van Tol, Mine Automation Project Engineer at Suncor and one of several member representatives who lends his expertise to COSIA’s Mining Working Group. “We’re looking for ways to move materials more efficiently and reduce emissions. This is a big push across the mining sector.” Van Tol is involved in a project to reduce the reliance of mine haul truck fleets on diesel fuel. These giant vehicles transport materials from the mine face to processing facilities and

are the primary source of emissions on site. Some of the approaches the group is investigating are cleaner fuels, improving haul truck design, and implementing trolley (electric) assist. The group collaborates with the Canadian Mining Innovation Council (CMIC) to evaluate new technologies and engages with industrial truck manufacturers to align research efforts. It’s all part of developing the oil sands as sustainably as possible and supporting Canada’s efforts to meet its emissions targets. Statistics show mining trucks run at peak power about 30 per cent of the time, which means that 70 per cent of the time, power is wasted idling. What if the trucks could access power when they needed it, just the right amount at the right time? That’s what electrification achieves. The proven technology has been successfully applied to mining in other parts of the world and is now being adapted for the oil sands. It involves replacing a truck’s mechanical drive and diesel motor with an electrical drive and battery. Overhead trolley lines are installed on main transportation routes and the truck is fitted with a rooftop contact system to access power. “The trucks hook on and off the overhead

line as and when they need to,” Van Tol explains. “When they connect, they run off electricity and when they disconnect, they run off battery. It’s very efficient because the truck only takes the power it needs.”

best practices are shared among COSIA members and more broadly, delivering benefits across the mining industry, he says.

Other vehicle enhancements include regenerative braking, an energy recovery mechanism that kicks in when trucks go downhill. When braking, the vehicle makes use of a generator to slow down the vehicle, while also generating power that goes back into the electricity network. “All these improvements support efficiencies in the running of your entire fleet,” Van Tol notes. As innovation proves viable,

Canada’s Oil Sands Innovation Alliance (COSIA) is an alliance of oil sands companies working with scientists, academics and innovators to accelerate the pace of improvement in environmental performance in Canada’s oil sands through collaborative action and innovation. For more stories on oil sands innovation and collaboration, visit COSIA.ca.

About COSIA

The Pipeline News North , NOVEMBER 18, 2021

Participants in a natural gas symposium, Calgary, Alberta November 28, 1957. Organized to better acquaint the press with the industry. L-R: Dr. W. C. Howells, vice-president, McColl-Frontenac Oil Company; B. F. Willson, vice-president, Canadian Western Natural Gas; R. E. Mitchell, gas engineer, Shell Oil Company; T. A. Steele, Canadian Petroleum Association public relations committee; Jack M. Pierce, vice-president, West Maygill Gas & Oil.

Freeport LNG announces CCS plan amid news of stake sale Freeport LNG Development announced this week that it had executed a letter of intent (LoI) with Talos Energy to jointly develop a carbon capture and storage (CCS) facility to serve the Freeport liquefaction terminal on the Texas Gulf Coast. The announcement about the FLNG CCS project came a day after Global Infrastructure Partners (GIP) said that it was selling its 25.7% stake in Freeport to Japan’s JERA for $2.5bn.

Aerial view of wild well near Erskine, Alberta on October 28, 1955.

The Japanese firm is the world’s largest buyer of LNG and already owns a 25% interest in Train 1 at Freeport. It said in a statement that the acquisition would expand its involvement in Freeport to cover all three trains at the plant. JERA added that it would work with the consortium that operates Freeport to advance new LNG schemes, including a potential fourth train at the terminal.

The transaction comes as buyers in Europe and Asia compete to secure new LNG volumes amid a supply crunch that threatens to worsen if temperatures this winter are colder than normal. The FLNG CCS project would use a nearby Freeport-owned geological sequestration site with up to a 30-year injection term to permanently sequester carbon dioxide (CO2) from the liquefaction project. The scheme is subject to the finalisation of definitive agreements, but if it proceeds as planned, the companies anticipate first CO2 injection occurring by the end of 2024. Talos will be the project manager and operator and will be joined by its partner, Storegga Geotechnologies.

NOVEMBER 18, 2021, The Pipeline News North

Coastal GasLink surpasses 50 per cent completion milestone Coastal GasLink surpasses 50 per cent completion milestone Following years of significant construction milestones, we have now completed more than 50 per cent of the project, as we work towards our target completion date in 2023. This means 100 per cent of the 670-km route is cleared, and grading is more than 60 per cent complete. We’ve also safely installed more than 200 kilometres of pipe, with more being installed every day. Combined with reclamation activities underway in many areas, we are well on our way to delivering our best-in-class

natural gas pipeline that meets the strictest environmental and safety standards. Several other critical components of the project have been completed recently, including the Kitimat Meter Station and Murray River Crossing— all while placing safety and environmental protection at the forefront of each activity. Giving back to our local communities We’re committed to the wellbeing of the communities where we operate, and believe in supporting local organizations in their work providing important services for community

members. Coastal GasLink is proud of our partnership with the United Way, helping them to care for the needs of the most vulnerable including seniors, homeless, those struggling with mental health, addiction and food insecurity. Our Legacy of Giving campaign raised a total of $97,000, from our Coastal GasLink employees, Prime Contractor teams, and the TC Energy Empower matching program. We have also raised $54,000 through bottle drives at our workforce accommodation lodges, which will be donated to organizations across our project route.

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The Pipeline News North , NOVEMBER 18, 2021

Reclamation on Coastal GasLink: Section 1 enters final construction stage

Just over two years ago – September 3, 2019 to be exact – clearing, the first stage of pipeline construction began on Section 1. Today, Section 1 has leapfrogged in construction with pipeline installation almost complete, including pressure hydrotesting on completed pipe installation and reclamation efforts underway where testing has passed inspection. “Reclamation begins with final clean-up. Essentially, we replace clay and topsoil that we removed during construction. These materials were stored onsite during construction and now we will replace them and contour the land to its previous shape to re-

establish original drainage patterns,” explains Melanie Shandruk, Senior Project Engineer for Sections 1 and 2. “Our goal is to bring the land as close to its original state as possible.” One third of the 92 km section has already had topsoil replaced on the route and five crews are working to finish the job. While this work is happening, construction crews also clean-up the site by removing construction materials, such as staking, and replacing or repairing any infrastructure affected during work activities, for example, reinstalling sections of fence on farmland.

Once this work is done, the Environment team begins revegetation which may include re-seeding or planting vegetation native to the area. “Coastal GasLink’s reclamation preparation and planning process began long before the start of construction. Based on preconstruction vegetation information, advice from vegetation experts, and consultation, a plan for reestablishing ecologically suitable species was developed and is being implemented as construction is finished,” says Michelle Heffernan, Coastal GasLink Reclamation Advisor. Vegetation experts provide recommendations for seed

mixes where seed is required to reestablish biodiversity while also minimizing weeds. For grassland and erosionprone areas, the prime contractor will perform seeding during final cleanup. Following final cleanup, Coastal GasLink will work with local Indigenous contractors to carry out planting of trees and species of ecological and cultural concern, where appropriate, to supplement natural regeneration in forested areas. “Supplemental planting decisions are made in consultation with local stakeholders and Indigenous groups. We aim to plant species that are ecologically suitable and support land use,” shares Michelle.

Final cleanup of Section 1 will continue into late 2022 with Section 2 following into 2023. This period involves restricting access to the pipeline route that was not open to human activity prior to construction. Once final clean-up is complete, fiveyears of post-construction monitoring begins which includes assessments of landscape, vegetation, wetlands, access control, and wildlife to ensure reclamation efforts are successful. Additional mitigations will be implemented, as required, based on monitoring results.

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NOVEMBER 18, 2021, The Pipeline News North

CAPP: Industry plays key role in Indigenous prosperity The Canadian Association of Petroleum Producers (CAPP) has released a new report, Indigenous Engagement and ESG, its second in a series outlining environment, social and governance (ESG) performance in Canada’s upstream natural gas and oil industry. The report highlights many examples of how Indigenous peoples and the upstream oil and natural gas sector are finding new ways to work together, growing resource development in a sustainable and mutually beneficial manner. This is the most comprehensive review ever completed documenting the extent of engagement between Canada’s oil and natural gas producers and Indigenous communities

oil development. The report is published on CAPP’s website. Highlights from the report: Indigenous people make up 6.3 per cent of the upstream industry’s workforce. For comparison, Indigenous peoples make up about 3.3 per cent of Canada’s total workforce. According to a Macdonald-Laurier Institute report, the oil and gas and mining sectors represent eight of the top 10 highestpaying occupations for Indigenous peoples for Canada. - Between 2009 and 2019, Indigenous share of industry jobs and share of senior management roles increased, while the wage gap decreased. - In 2019, the natural gas and oil industry procured

including consultation, workforce, community programs and investment, and Indigenous investment and participation in resource projects. Like Canadians in general, Indigenous peoples hold a range of diﬀerent perspectives on resource development and many are seeking to build sustainable and prosperous community futures by participating in the opportunities that development creates. The Indigenous Engagement and ESG Report documents how the upstream oil and gas industry sees an important future for itself, its Indigenous workers and business partners as they work together continue to innovate in the pursuit of responsible natural gas and

term mutual benefit. “In a world with a growing need for responsibly developed oil and natural gas, the deep relationships and partnerships with Indigenous-owned business and communities across Canada play an integral role in the success of our industry,” said CAPP President & CEO Tim McMillan. “In return, a strong natural gas and oil industry offers significant opportunities for employment and business development to Indigenous communities, providing pathways to greater prosperity while supporting Canada’s goals for reconciliation.”

more than $2.6 billion of goods and services from 275 Indigenous suppliers, contractors and other businesses across Canada. - From 2017 to 2019, the oil sands industry’s Indigenous community investment spending rose from $21 million to $32 million. Funding helped support such initiatives as community activities, in-kind investments and contributions to community infrastructure. - For industry, it makes good business sense to work with neighbours, including local Indigenous employees and contractors with connections to the area. This is also integral to resource development contributing to local prosperity, supporting selfdetermination and long-

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The Pipeline News North , NOVEMBER 18, 2021

Adopt-A-Family Program - 2021

The Salvation Army & Nawican Friendship Centre

Christmas Hamper & Toy Registration November 16, 9 am – 4 pm November 18, 9 am – 4 pm November 23, 9 am – 4 pm November 25, 9 am – 4 pm November 30, 9 am – 4 pm December 2, 9 am – 4 pm

The following documentation will be required: • ID for all household members • Proof of address for all members 18 and over • Proof of income and shelter expenses Please contact either of the following numbers to set up an appointment to register for a Christmas Hamper:

250-782-5202 or 250-782-8669 The Nawican Centre and The Salvation Army Would like to take this opportunity to wish everyone

a very

Merry Christmas

The Adopt-A-Family (AAF) program matches impoverished families with individual or group sponsors to provide for their tangible needs at Christmas. When an Adopt-A-Family match is made, the family information (with their permission) and wish lists are sent to the sponsor. The Salvation Army ensures that the family receives the gifts and food during the week before Christmas.

Adoptees may be referred by professional social workers, or other social agencies. Applications are completed and a wish list is compiled. This gift guide may include toys and/ or clothing for children. Sponsors are asked to provide one or more new gifts for each child (minimum of $75.00 per child) and to provide a Christmas food hamper for the family.

Sponsors come in many shapes and sizes. They can be individuals, families, small businesses or large corporations. In many of the larger corporations, different departments often each adopt a family. Many sponsors find the experience so fulfilling that they participate in the program year after year.

For further details and information regarding this program and how you may participate as a sponsor please contact The Salvation Army Community & Family Services (Food Bank) at 250-782-8669 or email Major Deris, deris.fillier@salvationarmy.ca.