How to get Canada's oil and gas to export markets?

[lenaitch]

Oil spills? We are talking about LNG - Liquefied Natural Gas. LNG spills rapidly evaporate into the atmosphere, so I don't see the threat of remote oil spills.

Natural gas is terrestrially transported as a compressed gas. Pressures depend on the line, but generally at pressures between 500 and 1500psi. It doesn't evaporate because it is already a gas, but will disperse because it is lighter than air. One problem may be the cause of a breach because it is flammable:

Gas is liquified by deep cooling (about -160*C) for storage or marine transport at virtually no pressure. The gaseous/liquid volume comparison is about 1/600.

If people think beyond 'pipeline = bad', I imagine there would be a lot less opposition to transporting NG vs liquid petroleum.

 

[afransen]

The business case is very tough there due to the threat of remote oil spills and the accompanying prohibitively high insurance costs. Environmentally it would risk disaster in the difficulty to respond to any oil spills due to its very remote location. Another port in northern manitoba would be more useful in exporting things like Potash.

There are bunch of LNG projects on Canada's west coast. In addition to LNG Canada that's about to come online, Woodfibre LNG is currently under construction with Cedar LNG set to begin construction. Ksi Lisims LNG, a potentially massive project, is going thru the approval process now.

When it comes to exporting LNG to Europe, it would be more feasable for Canada to focus on developing LNG projects in Atlantic Canada, where it would be pretty advantageous when exporting to Europe.

Suggests to me there would be significant value in Canada developing more ice breaking capacity to keep northern ports active longer in addition to supporting arctic sovereignty.

 

[guavadelic]

A Norwegian energy company seems to lobbying to push an LNG project in Quebec:

Norwegian company looks to jump-start LNG export project in Quebec​

Speaking to reporters in Sept-Îles, Que. on Friday, Premier François Legault confirmed that members of his team have met with the proponents of the project, which he said would be located in Baie-Comeau, Que., along the north shore of the St. Lawrence River in the province’s Côte-Nord region.

But he added the project is “very preliminary.”

Greg Cano, chief operating officer for Marinvest Energy Canada, said there is a “clear and growing demand” for LNG in Europe, and Quebec is “strategically well-positioned to meet this need.”

“In our view, Quebec can play a key role in helping diversify export options for Canadian natural gas, especially at a time when relying solely on the U.S. market presents growing challenges,” he said in an email statement.

https://www.ctvnews.ca/politics/art...y-has-plans-for-lng-export-project-in-quebec/

 

[Admiral Beez]

Why can't we just expand the existing pipeline to southern BC?

 

[Admiral Beez]

Looks like we’d better a move on…

What the U.S. attack on Venezuela could mean for oil and Canadian crude exports

U.S. control of Venezuela’s energy sector threatens to transform crude oil markets

www.theglobeandmail.com

Paywall free: https://archive.is/X8qaJ

If the US refineries switch from Alberta to Venezuelan supply, they’ll be nowhere to refine Canadian oil. And if Venezuelan oil floods the market, the price of all oil will fall. On the plus side, Albertans might not want separate if they revert to have not status.

 

[afransen]

Looks like we’d better a move on…

What the U.S. attack on Venezuela could mean for oil and Canadian crude exports

U.S. control of Venezuela’s energy sector threatens to transform crude oil markets

www.theglobeandmail.com

Paywall free: https://archive.is/X8qaJ

If the US refineries switch from Alberta to Venezuelan supply, they’ll be nowhere to refine Canadian oil. And if Venezuelan oil floods the market, the price of all oil will fall. On the plus side, Albertans might not want separate if they revert to have not status.

Given the lack of other export capacity, I think Venezuelan oil would lead to a bigger discount for Alberta crude in Texas, and Venezuelan oil would be exported more to other markets. Some Canadian production may be curtailed/shut in if it the price falls below marginal cost to extract. It would definitely hurt investment in additional capacity in Alberta.

 

[Admiral Beez]

Given the lack of other export capacity....

Is our current pipeline from Alberta to the BC coast still running at under capacity?

https://www.cbc.ca/news/canada/calgary/bakx-tmx-optimization-oil-wcs-1.7624323

 

[afransen]

Is our current pipeline from Alberta to the BC coast still running at under capacity?

https://www.cbc.ca/news/canada/calgary/bakx-tmx-optimization-oil-wcs-1.7624323

That article indicates that the pipeline is near capacity and expects to be fully utilized in the next year or two.

 

[Admiral Beez]

The business case is very tough there due to the threat of remote oil spills and the accompanying prohibitively high insurance costs.

Given the growing instability in the Middle East causing price spikes and supply worries in Europe that they may need to reconsider sanctions/embargoes on Russian oil, a broken down oil industry in Venezuela, combined with new Canadian rapprochement with China and India I would say the business case for expanded exports of Canadian oil (and gas?) has never looked stronger. Yes, it takes years to build new pipelines, by which time the geopolitics may have altered, but the Middle East and Russia will always be volatile players in the oil market. Canada has the oil that the world needs, if we can get the oil to the two (or three) coasts. Right now, due to lack of a pipeline from the West and no port infrastructure in NS/NB, there is no way to ship Alberta oil to Europe, but we can (and do) ship oil to Europe from the offshore fields in Newfoundland and Labrador. We need to expand these capabilities.

https://www.cbc.ca/news/business/canada-fill-gap-supply-oil-energy-iran-9.7114328

Newfoundland and Labrador Can Grow as a Trusted Oil Supplier to Europe - Canadian Energy News, Top Headlines, Commentaries, Features & Events - EnergyNow

Canada sold $11.4 billion worth of offshore oil to Europe from 2015-2021 By Deborah Jaremko Follow CEC on Linkedin CEC Linkedin Follow CEC on Facebook CEC Facebook Follow CEC on Twitter CEC Twitter The Terra Nova floating production, storage and offloading (FPSO) vessel arrived in Ferrol, Spain...

energynow.ca

Europe signals interest in Canadian gas

Newfoundland project and Kitimat exports highlight Canada's potential role in energy sector

www.wealthprofessional.ca

 

[Jm gravel]

I still think the weakest link in our energy infrastructure is Line 5 through Michigan which imo puts Ontario at risk for external interference in our energy supply….question is how to fix this.

 

[lenaitch]

I still think the weakest link in our energy infrastructure is Line 5 through Michigan which imo puts Ontario at risk for external interference in our energy supply….question is how to fix this.

I agree and feel it is a national security concern. Not as sexy as 'nation building' building projects I suppose and won't do anything for the economy (until it became a problem). Off the top of my head, the fix would be lines paralleling TC Energy's trans-Canada lines through northern Ontario. Not cheap.

 

[Admiral Beez]

I agree and feel it is a national security concern. Not as sexy as 'nation building' building projects I suppose and won't do anything for the economy (until it became a problem). Off the top of my head, the fix would be lines paralleling TC Energy's trans-Canada lines through northern Ontario. Not cheap.

How do we think the Americans feel with their Alaska to the continental USA pipelines relying on Canadian goodwill?

 

[lenaitch]

How do we think the Americans feel with their Alaska to the continental USA pipelines relying on Canadian goodwill?

I'm not aware that any crude from Alaska moves through Canada. Regardless, that sounds like a 'them' problem.

 

[Admiral Beez]

I'm not aware that any crude from Alaska moves through Canada.

You might be right. I always thought that the US forced a pipeline through Canada in the immediate postwar. But I must have been thinking of the Alaska Highway.

 

[lenaitch]

You might be right. I always thought that the US forced a pipeline through Canada in the immediate postwar. But I must have been thinking of the Alaska Highway.

You might be thinking of the Canol pipeline that was built during WWII between NWT, Yukon and Alaska (although I'm not sure oil every reached Alsaka) and operated for about a year before being abandoned. It was small - I think about 4".