Back in 1667, Canada (or, then, “New France”) began to export some natural resources (fish and timber) to the West Indies and France.
Later came the famous fur trade, using another natural resource, with First Nations involvement. Then came mining, and Canada sent much gold to Europe.
Later came oil and gas: The first natural gas pipeline (Quebec, 1853), the first commercial oil well (Ontario, 1858), the first oil pipeline (Ontario, 1862), the first commercial gas well (Ontario, 1889), the first export of Canadian gas to the U.S. (from Ontario, 1891), the first asphalt plant in the oilsands (Alberta, 1929), and the first exports of oil by pipeline (Alberta to Alaska, 1944).
Then came the development of pipelines; today we have more than 70 oil and gas pipelines of various types, covering a network of some 840,000 kilometres in all.
Canada produces some 5.65 million barrels of oil a day (2023 average) and last December our natural gas production hit 18.8 billion cubic feet a day.
Small wonder, then, that the Canadian Association of Petroleum Producers notes we are the world’s No. 4 producer of oil (behind Russia, Saudi Arabia and No. 1 U.S.). And that we are No. 5 in natural gas production (behind China, Iran, Russia and the leading U.S.)
An important economic note: Canada’s largest export is oil, natural gas and petroleum products. They make up 23% of Canada’s exports. That compares with metals and minerals at 15.7%, the auto industry (13.4%), food and produce (13%) and forest products (4.8%).
For British Columbia, energy is the No. 1 source of export earnings. And energy is about to become an even bigger factor in that province’s export mix, when LNG production and shipments from LNG Canada begin next year.
Meanwhile, world energy demand has grown by nearly 15% over the last decade, with oil and natural gas demand growing by 12%.
So, with elections looming in Canada and British Columbia, the oil-and-gas sector has been regularly pointing out the strength of our resources, their vital role in the economy, and how we could better meet demand for our petroleum products.
And especially when it comes to liquefied natural gas (LNG).
London-based Energy giant BP sees world demand for LNG growing by 30-40% above 2022 levels in 2030, and then increasing by more than 25% over the subsequent 20 years.
And now there’s a non-industry report (from Deloitte, international consultants) that sees Canada’s natural-gas sector as poised for significant growth, driven by ongoing LNG projects and rising demand for gas-fired electricity generation.
“Despite the current weak natural-gas prices in Western Canada, there’s significant optimism among producers. In addition to the LNG Canada facility in Kitimat, several LNG projects off the coast of British Columbia are inching closer to green lights and aiming to be completed by the end of the decade, with potential export volumes totalling nearly 6.6 Bcf/day (billion cubic feet a day).”
Deloitte also sees strong demand from more gas-fired electricity-generation capacity in Alberta. Alberta now has switched to gas from thermal coal to generate power.
(While there has been little public outcry about it, shipments of thermal coal from B.C. ports to Asian buyers have increased. They hit 19.5 million tonnes last year, up from just over 18 million tonnes in 2022. More than half was coal produced in the U.S. Ottawa first promised in 2021 that all thermal coal exports would end by 2030. Now Environment Minister Steven Guilbeault says he expects to announce later this year a plan to phase out coal exports.)
The Deloitte report goes on to say: “Advocating or greater simplicity and transparency in (government) policy is needed to enable industry to continue to diversity and transform Canada’s entire energy supply to power a net-zero future.”
That point has also long and loudly been made by industry.
It is thus good to see Prime Minister Justin Trudeau singing the praises of the Haisla Nation’s Cedar LNG project:
“Congratulations to the Haisla Nation, Pembina Pipeline Corporation, and everyone at Cedar LNG. I’m so pleased to see this project move forward. Thank you for all your hard work to make so many firsts happen right here in Canada: the world’s first Indigenous-majority-owned liquefied natural gas export project. And because of its electric-driven component, the world’s lowest-carbon-footprint LNG facility.
“With Cedar LNG, Haisla Nation has been a leader in demonstrating how Indigenous Peoples and government can, and should, work together in partnership to create prosperity, and opportunities for the next generation.
“I want to acknowledge Chief Councillor Smith: Crystal, you and your membership had such vision and perseverance on this. As a majority owner in Cedar LNG, the Haisla Nation will manage its own revenue stream. That’s revenue to build up your community, and for your members, on your terms.
“The world is evolving. The way we get our energy is evolving. And the way we do business is evolving. Everyone involved in this project saw this, and also the opportunities that come with it. Your project, and the partnership behind it, is a model for economic reconciliation in this country. . . .
“Congratulations again to everyone here today. Thank you for building up this industry, your community, and our country.” (Video)
Now Cedar LNG awaits final decisions on financial support from Ottawa.
Also good to see B.C. Premier David Eby backing Cedar LNG: “This decision shows not only the perseverance of the Haisla Nation in achieving this historic milestone, but also confidence of investors in B.C.’s economy, and how the future for the natural resources sector is bright and will continue to support B.C.’s strong economic performance, which has led Canada’s large provinces in GDP growth since 2017.”
Eby added: “Cedar LNG is a shining example of how natural resource development should work in our province — in full partnership with First Nations and with the lowest emissions possible. By working together, we can build a stronger and cleaner economy that creates opportunities and benefits for all.” (Eby video)
Now this question: Can Eby ensure that B.C. Hydro comes up with the extra power needed by Cedar LNG, LNG Canada, and the NIsga’a Nation’s Ksi Lisims LNG project?
Cedar LNG plans to be electrically driven. LNG Canada is looking into expansion, and would want to do so with electric drives. Ksi Lisims also plans electric drives.
Ksi Lisims now officially owns the Prince Rupert Gas Transmission (PRGT) pipeline project and is ramping up to begin construction on it by the end of August.
