Our newsletter: 26 September 2024
LNG Canada eyes Phase 2 expansion
As LNG Canada stepped up testing at its Kitimat plant, there was more talk of the firm’s partners looking at expansion — doubling its initial planned output of 14 million tonnes of LNG a year.
“The kind of prerequisites are there,” CEO Jason Klein said during the Gastech 2024 conference in Texas. “We put in a lot of pre-investment into the facility to tie in Phase 2.
“It really comes down to it’s a globally competitive business, and our partners are going to look at the capital costs, the delivery costs, the investment climate and their markets, and when they want to make investments in Canada versus other opportunities in the world.”
A poll of Canadian oil/gas leaders found 97% think LNG Canada will go ahead Phase 2. “There’s enough resource in Canada to support probably four or five LNG Canadas,” said one: https://ow.ly/e5Rp50TszRI
LNG Canada stuck to its outlook for the Phase 1 plant to begin exports in mid-2025, but there has been speculation that the first shipment might in fact go out late this year.
Martin King, Canadian energy specialist with Texas-based RBN Energy, wrote: “LNG Canada appears to be on the cusp of its testing phase and is likely to be exporting some cargoes of LNG before the end of this year.”
Meanwhile, LNG Canada started up one gas turbine engine on Train 1 for a mechanical test run. That means more flaring of natural gas: https://ow.ly/wuJz50TszPT
Canada’s lost LNG opportunities
“Canada has missed opportunities to supply Europe with LNG due to political missteps and regulatory barriers, despite having the resources and potential.”
That’s in an analysis by Resource Works, a B.C.-based non-profit research and advocacy organization that supports responsible resource development and is a prime follower of our First Nations LNG Alliance.
“Since Russia invaded Ukraine, the EU member states have made drastic moves to curtail their reliance on Russian energy, specifically Russian gas.
“In an ideal world, the diversification of the EU’s energy supply would have been Canada’s golden opportunity to use its vast LNG capabilities to fill the gap.
Canada has all the right resources at its disposal to become one of the EU’s premier energy sources, with enormous natural gas reserves lying in the ground and shores upon three of the world’s four oceans. The problem is that Canada lacks both the right infrastructure and the necessary political will to get it built.”
- The full Resource Works story: https://ow.ly/LJ7S50TsA0M
At the same time, Dave McKay, CEO of the Royal Bank of Canada, spoke of a practical partnership in which the U.S. ships LNG to Europe, and Canada sends LNG to Asia.
“Canada has to get in sync and create value for our largest trading partner. . . . The U.S. needs us to supply Asia with energy. That allows the United States to feed energy to Europe.”
And, he added: “Particularly Asia wants our LNG. They need it. It’s cleaner than what they’re using today, the amount of coal being burned.”
- Story from Alberta’s Canadian Energy Centre: https://ow.ly/Kkg650TsA4y
Indigenous clean-energy news
- Ontario helps the largest Indigenous-led energy project in that province’s history: https://ow.ly/UNBW50TnL3C (Photo above)
- Construction begins on Malahat Nation battery-pack plant in BC: https://ow.ly/zrFS50TqTBz
- Indigenous partner in the driver’s seat on battery recycling in Ontario: https://ow.ly/fVQ150TqTLm
- Batchewana First Nation in Ontario takes full ownership of wind facility: https://ow.ly/7jzl50Trau9
- New FortisBC connection to provide clean power to Westbank First Nation, and West Kelowna, Peachland and parts of Summerland: https://ow.ly/vU6t50TnL6U
- BC Hydro gets proposals for three times the new clean power it is seeking: https://ow.ly/rgnZ50TqwA4 See also https://ow.ly/VlPP50TqRMB
- BC Hydro’s call for power specified at least 25% First Nations equity ownership in projects: https://ow.ly/QJE150TqwA2
- Manitoba plans 600-MW wind procurement with majority Indigenous ownership: https://ow.ly/iVzC50TuXtn
- Clean-energy opportunities are on the rise for First Nations: https://ow.ly/kaXT50TtpUH (A primer from the First Nations Major Projects Coalition)
- Pabineau First Nation advances green energy in NB: https://ow.ly/ebFk50TvaOL
OUR LATEST BLOG
- Under Ottawa’s new anti-greenwashing law, you’re guilty unless you prove your innocence. That’s simply not a Canadian concept. This new law needs to be changed or repealed. https://ow.ly/3r8950TtMg8 Via Resource Works
ALSO IN THE NEWS
- Ten new export projects are under construction in Canada, Mexico, and the U.S. By the end of 2028, the U.S. estimates LNG export capacity will grow by 0.6 billion cubic feet/day in Mexico, 2.5 bcf/d in Canada and 9.7 bcf/d in the U.S. https://ow.ly/tf3E50Tp7Cu
- “Canada is going to be the song on the dance floor” as investment pours in for West Coast LNG development: https://ow.ly/tMZ450Tp6eP
- Indigenous equity ownership in resource projects has seen momentum in 2024, but there’s more work to do: https://ow.ly/C3eP50TvbW6
- With peak construction expected in 2026, the Haisla Nation’s Cedar LNG is sharing information about jobs and skills required: http://cedarlng.com/opportunities
- FortisBC launches new initiatives to support gender and cultural safety in the Squamish community, as work proceeds on the Eagle Mountain pipeline to Woodfibre LNG: https://ow.ly/azz450Tms1S
- Woodfibre LNG’s Community Partnership Program invites local non-profit organizations in the Squamish and Sea-to-Sky region to apply for up to $5,000 of funding. Deadline is October 11.https://ow.ly/2lHc50Tp361
EVENTS
- Methane Mitigation Canada Summit, Sept. 30-Oct. 2, Calgary: https://ow.ly/8csc50TcERR
- Assembly of First Nations climate gathering, Oct. 7-10, Calgary: https://ow.ly/eLRB50T2gKb
- Canadian Gas Association’s Energy Nexus and Technical Conference, Oct. 7-10, Toronto: https://ow.ly/Zm5l50TcEQL
- Nation2Nation’s 8th annual forum, Oct. 8-10, Terrace BC: https://ow.ly/omzI50RAgBT
- Canadian Council for Indigenous Business, Indigenous procurement event, Oct. 16, Enoch AB: https://bit.ly/47luCDA
- Forward Summit West Coast, Oct. 22-23, Vancouver: https://ow.ly/4UQe50R3CY2
- Indigenous Clean Energy’s 2024 ICE Gathering, Nov. 27-29, Toronto: https://ow.ly/E32W50SREmg
- First Nations Energy Summit, Dec. 2-3, Vancouver. Info/register: https://ow.ly/2sQP50TjtNl
2025
- 22nd Annual BC Natural Resources Forum, Jan. 14-16, Prince George: https://ow.ly/BajJ50Tr1aU
- Nation2Nation Women’s Gathering, April 24 -25, Kitimat BC: https://ow.ly/A8yo50SYpkv
- National Aboriginal Capital Corporations Association, Indigenous Prosperity Forum, May 6-8, Gatineau PQ. Details TBA.
- Ninth Indigenous Resource Opportunities Conference, June 18-20, Nanaimo BC: https://ow.ly/m1rW50SHvIp
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