PIPELINE NEWS NORTH March 2022
Serving the Oil and Gas Industry in Northern B.C. and Alberta VOL. 14 • ISSUE 03
FREE Ovintiv’s water hub station southwest of Dawson Creek. BROWN
Globe Forum panel focuses on US/CAN energy co-operation Canada’s new emission’s reduction plan, which calls for a 42% reduction in emissions in Canada’s oil and gas sector in just eight years, is unrealistic and unachievable, or not nearly aggressive enough, depending on which special interest group you listen to. The fact the plan, released yesterday during the Globe Forum in Vancouver, has been questioned by both fossil fuel hawks and doves suggests Canada may have hit the “sweet spot,” said American Ambassador to Canada David Cohen. “When basically people on both sides of the fight – and there shouldn’t be sides in this fight – say it’s too aggressive or not aggressive enough, you must have done a pretty good job of designing that plan,” Cohen said in a panel discussion with Canadian Natural Resources Minister Jonathan Wilkinson on Canada-U.S. co-operation on energy policies. Right now, both Canada and the U.S. are focused on a global energy crisis, which will necessitate
trying to supply Europe with more oil and natural gas. Wilkinson said neither country can lose sight of the longer-term goal of reducing the world’s reliance on fossil fuels. “At the end of the day, we of course need to work to stabilize global energy pricing,” he said. “We of course need to work to assist our European friends and allies during what is a terrible crisis. “Of course Canada – and I’m sure the United States – want to be there to support. And that means helping them to displace reliance on Russian oil and gas. But we similarly need to be conscious of the impacts with respect to climate and ensure that this is considered in the context of a broader transition.” Last week, while meeting with the International Energy Agency and his counterparts in European governments, Wilkinson said, “to a country, the focus is on ensuring that we actually address the short-term requirements, that we focus on accelerating the transition towards renewables
and hydrogen.” The emissions reduction plan the federal government released yesterday sets targets for emission reductions in all sectors of the economy. It includes strategies for greening Canada’s grid, wider adoption of electric vehicles, and improving energy efficiency in buildings. The oil and gas and transportation sectors are the two that must achieve the greatest reductions, since they are the two biggest sources of greenhouse gases. The challenge for Alberta’s oil patch, and B.C.’s natural gas and LNG sectors, will be growing production while lowering their emissions intensity. Emissions from Canada’s oil and gas sector have increased by 22% since 2005, which has been the benchmark Canada uses for emissions reductions targets.
20 The Pipeline News North, MARCH 17, 2022
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Natural Resources Minister Jonathan Wilkinson, left,and U.S. Ambassador to Canada David Cohen talk U.S.-Canadian cooperation on energy transition.
Enbridge awarded right to advance Alberta carbon hub
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The Government of Alberta announced that Enbridge (TSX: ENB) (NYSE: ENB) has been awarded the right to pursue development of a carbon dioxide (CO2) sequestration hub west of Edmonton, Alberta. Enbridge is developing the Open Access Wabamun Carbon Hub (the Hub) to support near-term carbon capture projects being advanced by project partners Capital Power Corporation (Capital Power) and Lehigh Cement, a division of Lehigh Hanson Materials Limited (Lehigh Cement). “We are excited to take this next step in developing the Open Access Wabamun Carbon Hub in Alberta,” said Enbridge’s
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Colin Gruending, Executive Vice President and President, Liquids Pipelines. “We commend the Government of Alberta for moving quickly on launching a world-class carbon capture and sequestration (CCS) industry in the province. We look forward to working with project partners Capital Power and Lehigh Cement, along with our local Indigenous partners, to advance the Hub, creating jobs and economic growth, and helping Alberta and Canada meet emissions reduction goals.” The Hub and associated carbon capture projects being advanced by Capital Power and Lehigh Cement represent an opportunity to avoid nearly 4 million tonnes
of atmospheric CO2 emissions with phased in-service dates starting as early as 2025. Once built, the Hub will be among the largest integrated CCS projects in the world and can be scaled to meet the needs of other nearby industrial emitters. The Hub’s carbon transportation and sequestration facilities will be co-developed and ultimately co-owned with local Indigenous partners, including the First Nations Capital Investment Partnership (comprised of Alexander First Nation, Alexis Nakota Sioux Nation, Enoch Cree Nation and Paul First Nation) and the Lac Ste. Anne Métis
CAPP on the Canadian government’s Emissions Reduction Plan The federal government’s new Emissions Reduction Plan acknowledges that global demand for natural gas and oil will continue for decades and Canada has a role to play in providing lower emission resources to the world’s energy mix. Canada’s energy sector should be a key contributor to reducing global emissions while meeting the growing demand for affordable, reliable and trusted natural gas and oil. One of the largest contributions Canada can make to lowering global
greenhouse gas emissions is by exporting Canadian liquefied natural gas (LNG) to displace the use of coal in the world’s energy mix. At the same time, Canadian producers are global leaders in emissions-reducing technologies, including the advancement of carbon capture. Russia’s invasion of Ukraine has brought the energy security and affordability crisis to the doorsteps of Canadians. This is a crisis brought on by years of energy policies around the globe that are misaligned with
the realities of energy demand leading to an increasing reliance on dictatorships to provide critical energy supplies. We look forward to the consultation process for the elements of the plan and to supporting Canada’s role in reducing global emissions while enhancing energy security and affordability. Terry Abel, Executive Vice President, Canadian Association of Petroleum Producers (CAPP)
The Pipeline News North, MARCH 17, 2022
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March oil lease and work northwest of Mile Zero. BLAKE BROWN
Canada to hike oil, gas output 300,000 barrels a day Natural Resources Minister Jonathan Wilkinson says Canada can produce and export another 300,000 barrels of oil and natural gas per day as part of a global effort to displace Russian fossil fuels.
He says consultations with industry have identified that Canada can speed up production and also has the pipeline capacity to make small increases to its oil and gas exports by the end of this year.
Wilkinson is in Paris for an International Energy Agency meeting, which was focused heavily on helping Europe reduce its strong dependence on Russia for oil and gas.
That includes 200,000 barrels per day of oil and 100,000 barrels of oil equivalent per day of natural gas.
discussion” about what else it can do to help, including new natural gas terminals on the East Coast to export Canadian LNG to Europe. But he says those investments are heavily dependent on understanding the amount of time it would take to get them running, and being able to ensure any new gas infrastructure is “ultralow emission” so it doesn’t increase Canada’s carbon foot print along the way.
Wilkinson says Canada is “very open to the
Entropy Inc. announces $300 million investment agreement with Brookfield Renewable Entropy Inc. a subsidiary of Advantage Energy Ltd. (“Advantage”), is pleased to announce a strategic $300 million investment agreement with Brookfield Renewable to scale up deployment of Entropy’s carbon capture and storage (“CCS”) technology globally. Highlights of the Strategic Investment Agreement The investment provides Entropy with a combination of strategic advantages: Capital commitment of $300 million to fund Entropy’s near-term projects, including its Glacier Phase 1 and 2 CCS projects Potential for significant follow-on capital on
mutually agreeable terms Access to a large-scale international portfolio; increasing Entropy’s already considerable pipeline of potential CCS projects Enhanced capacity for global commercial, marketing and policy relationships Underscores mutual confidence in Entropy’s sophisticated CCS technology and global development strategy “We are excited to be receiving substantial backing from Brookfield Renewable, who share our strategic approach to carbon abatement,” said Michael Belenkie, President and CEO of Advantage.
“In order to have a meaningful impact on a global scale, we must invest in the highest efficiency projects with advanced technology, at scale. Entropy has a strong pipeline of these projects under development and owns the full suite of next-generation CCS technology,” he said. “Combining Brookfield’s financial power and international presence is a key step to achieving global scale. With the growing need to balance carbon abatement with world-wide energy security, CCS needs to play a leading role and Entropy intends to be an important part of accelerating its deployment.”
22 The Pipeline News North, MARCH 17, 2022
2022 Scotiabank CAPP Energy Symposium
The 2022 Scotiabank CAPP Energy Symposium will take place on April 5-6 in a virtual format. This year’s keynote speakers, fireside chats and panels will be hosted again as a video webcast on the Zoom platform. Canada’s premier energy investment conference connects the upstream oil and natural gas industry with the investment community. Presentations, discussions and keynote speakers will address how the upstream sector is managing through the current unprecedented market conditions, energy crisis, war in Ukraine and the future of the industry. CONFERENCE DETAILS When:
Moderator: Jason Bouvier, E&P, Integrated Oils, Scotiabank
Robert R. McCormick, School of Engineering and Applied Science Panel: Indigenous Peoples & the Canadian Oil & Gas Industry: Building Partnerships for Prosperity Stephen Buffalo, President & CEO, Indian Resource Council
Panel: Differentiated Business Models – Royalty Companies with Stable Returns
Robert Merasty, Executive Director, Indigenous Resource Network
David Spyker, President & CEO, Freehold Royalties Ltd.
Crystal Smith, Chief Councillor Haisla Nation, First Nation LGN Alliance
Andrew Phillips, President & CEO, PrairieSky Royalty Ltd.
Moderator: Shannon Joseph, VP Government Relations and Indigenous Affairs, CAPP
Marty Staples, President & CEO, Topaz Energy Corp.
Tuesday, April 5, 2022 – 7:15 a.m. to 2:25 p.m. MST / 9:15 a.m. – 4:25 p.m. EST Wednesday, April 6, 2022 – 7:10 a.m. to 2:10 p.m. MST / 9:10 a.m. – 4:10 p.m. EST Video webcast: Media is required to register with media@capp.ca in advance of the 2022 Scotiabank CAPP Energy Symposium to obtain webcast portal instructions. This investment conference is not open to the public. Speakers April 5, 2022 Opening keynote: Remarks from Pruyn Haskins, Global Head of Equities, Scotiabank and Tim McMillan, President & CEO, Canadian Association of Petroleum Producers Keynote: Energy Security, Geopolitical Risks and Canada’s Opportunity Remarks from Jim Burkhard, VP & Head of Research for Oil Markets, Energy and Mobility, IHS Markit
Panel: Growing Free Cash Flow and Maximizing Shareholder Returns Ian Dundas, President & CEO, Enerplus Corporation
Moderator: Cameron Bean, Oil & Gas, E&P, Scotiabank Panel: The Canadian Edge: Leveraging Low-Cost Feedstock and Diversifying Exports TBC, AltaGas Ltd.
Panel: What Does the Future Hold for Canadian Natural Gas?
Paul Hawksworth, SVP Investments, Brookfield Infrastructure Partners LP Stu Taylor, SVP, Marketing and New Ventures & Corporate Development, Pembina Pipeline Corp. Moderator: Rob Hope, Utilities & Energy Infrastructure, Scotiabank
Keynote: Outlook for US Supply, NA Midstream, NA Differentials and Crude Export Dynamics John Coleman, Mackenzie
Research
Director,
Jeff Tonken, President & CEO, Birchcliff Energy Ltd. Jonathan Wright, President & CEO, NuVista Energy Ltd Darren Gee, President & CEO, Peyto Exploration & Development Corp. Moderator: Cameron Bean, Oil & Gas, E&P, Scotiabank
Wood
Moderator: Kevin Fisk, Oil & Gas, E&P, Scotiabank
April 6, 2022 Opening keynote: Remarks from Tim McMillan, President & CEO, Canadian Association of Petroleum Producers
Brian Schmidt, President & CEO, Tamarack Valley Energy Ltd. Lars Glemser, VP &CFO, Vermilion Energy Inc.
Mark Mills, Senior Fellow, Manhattan Institute, Faculty Fellow Northwestern University
Panel: Oil Sands Pathways: Technologies and Process Improvements to Achieve Net Zero Pamela McIntyre, SVP, Safety, Risk Management & Innovation, Canadian Natural Resources Limited Kam Sandhar, EVP, Strategy & Corporate Development, Cenovus Energy Inc. Sherri Evers, VP Commercial & Corporate Development, Imperial Oil Ltd. Moderators: Patrick Bryden, Head of ESG Research, Scotiabank and
Keynote: The Energy Transition – A Reality Check in the Post-Ukraine World
Jason Bouvier, E&P, Integrated Oils, Scotiabank