It’s likely 2024 will go down in history as a turning point for Canadian energy, despite challenging headwinds from federal government policy.   

Here’s some of the good news.

10. New carbon capture and storage (CCS) projects to proceed 

Photo courtesy Shell Canada

In June, Shell announced it will proceed with the Polaris and Atlas CCS projects, expanding emissions reduction at the company’s Scotford energy and chemicals park near Edmonton.  

Polaris is designed to capture approximately 650,000 tonnes of CO2 per year, or the equivalent annual emissions of about 150,000 gasoline-powered cars. The CO2 will be transported by a 22-kilometre pipeline to the Atlas underground storage hub.   

The projects build on Shell’s experience at the Quest CCS project, also located at the Scotford complex. Since 2015, Quest has stored more than eight million tonnes of CO2. Polaris and Atlas are targeted for startup in 2028.    

Meanwhile, Entropy Inc. announced in July it will proceed with its Glacier Phase 2 CCS project. Located at the Glacier gas plant near Grande Prairie, the project is expected onstream in mid-2026 and will capture 160,000 tonnes of emissions per year.  

Since 2015, CCS operations in Alberta have safely stored roughly 14 million tonnes of CO2, or the equivalent emissions of more than three million cars. 

9. Canada’s U.S. oil exports reach new record 

Expanded export capacity at the Trans Mountain Westridge Terminal. Photo courtesy Trans Mountain Corporation

Canada’s exports of oil and petroleum products to the United States averaged a record 4.6 million barrels per day in the first nine months of 2024, according to the U.S. Energy Information Administration.  

Demand from Midwest states increased, along with the U.S. Gulf Coast, the world’s largest refining hub. Canadian sales to the U.S. West Coast also increased, enabled by the newly completed Trans Mountain Pipeline Expansion. 

8. Alberta’s oil production never higher

A worker at Suncor Energy’s MacKay River oil sands project. CP Images photo

In early December, ATB Economics analyst Rob Roach reported that Alberta’s oil production has never been higher, averaging 3.9 million barrels per day in the first 10 months of the year.  

This is about 190,000 barrels per day higher than during the same period in 2023, enabled by the Trans Mountain expansion, Roach noted.  

7. Indigenous energy ownership spreads 

Communities of Wapiscanis Waseskwan Nipiy Limited Partnership in December 2023. Photo courtesy Alberta Indigenous Opportunities Corporation

In September, the Bigstone Cree Nation became the latest Indigenous community to acquire an ownership stake in an Alberta energy project.  

Bigstone joined 12 other First Nations and Métis settlements in the Wapiscanis Waseskwan Nipiy Holding Limited Partnership, which holds 85 per cent ownership of Tamarack Valley Energy’s Clearwater midstream oil and gas assets.  

The Alberta Indigenous Opportunities Corporation (AIOC) is backstopping the agreement with a total $195 million loan guarantee.   

In its five years of operations, the AIOC has supported more than 60 Indigenous communities taking ownership of energy projects, with loan guarantees valued at more than $725 million.  

6. Oil sands emissions intensity goes down 

Oil sands steam generators. Photo courtesy Cenovus Energy

A November report from S&P Global Commodity said that oil sands production growth is beginning to rise faster than emissions growth.  

While oil sands production in 2023 was nine per cent higher than in 2019, total emissions rose by just three per cent. 

“This is a notable, significant change in oil sands emissions,” said Kevin Birn, head of S&P Global’s Centre for Emissions Excellence. 

Average oil sands emissions per barrel, or so-called “emissions intensity” is now 28 per cent lower than it was in 2009. 

5. Oil and gas producers beat methane target, again 

Photo courtesy Tourmaline

Data released by the Alberta Energy Regulator in November 2024 confirmed that methane emissions from conventional oil and gas production in the province continue to go down, exceeding government targets. 

In 2022, producers reached the province’s target to reduce methane emissions by 45 per cent compared to 2014 levels by 2025 three years early.  

The new data shows that as of 2023, methane emissions have been reduced by 52 per cent.  

4. Cedar LNG gets the green light to proceed 

Haisla Nation Chief Councillor Crystal Smith and Pembina Pipeline Corporation CEO Scott Burrows announce the Cedar LNG positive final investment decision on June 25, 2024. Photo courtesy Cedar LNG

The world’s first Indigenous majority-owned liquefied natural gas (LNG) project is now under construction on the coast of Kitimat, B.C., following a positive final investment decision in June.  

Cedar LNG is a floating natural gas export terminal owned by the Haisla Nation and Pembina Pipeline Corporation. It will have capacity to produce 3.3 million tonnes of LNG per year for export overseas, primarily to meet growing demand in Asia.  

The $5.5-billion project will receive natural gas through the Coastal GasLink pipeline. Peak construction is expected in 2026, followed by startup in late 2028. 

3. Coastal GasLink Pipeline goes into service 

Workers celebrate completion of the Coastal GasLink Pipeline. Photo courtesy Coastal GasLink

The countdown is on to Canada’s first large-scale LNG exports, with the official startup of the $14.5-billion Coastal GasLink Pipeline in November.  

The 670-kilometre pipeline transports natural gas from near Dawson Creek, B.C. to the LNG Canada project at Kitimat, where it will be supercooled and transformed into LNG.  

LNG Canada will have capacity to export 14 million tonnes of LNG per year to overseas markets, primarily in Asia, where it is expected to help reduce emissions by displacing coal-fired power.  

The terminal’s owners – Shell, Petronas, PetroChina, Mitsubishi and Korea Gas Corporation – are ramping up natural gas production to record rates, according to RBN Energy. 

RBN analyst Martin King expects the first shipments to leave LNG Canada by early next year, setting up for commercial operations in mid-2025.  

2. Construction starts on $8.9 billion net zero petrochemical plant  

Dow’s manufacturing site in Fort Saskatchewan, Alberta. Photo courtesy Dow

In April, construction commenced near Edmonton on the world’s first plant designed to produce polyethylene — a widely used, recyclable plastic — with net zero scope 1 and 2 emissions. 

Dow Chemicals’ $8.9 billion Path2Zero project is an expansion of the company’s manufacturing site in Fort Saskatchewan. Using natural gas as a feedstock, it will incorporate CCS to reduce emissions.  

According to business development agency Edmonton Global, the project is spurring a boom in the region, with nearly 200 industrial projects worth about $96 billion now underway or nearing construction.  

Dow’s plant is scheduled for startup in 2027.  

1. Trans Mountain Pipeline Expansion completed 

The “Golden Weld” marked mechanical completion of construction for the Trans Mountain Expansion Project on April 11, 2024. Photo courtesy Trans Mountain Corporation

The long-awaited $34-billion Trans Mountain Pipeline Expansion officially went into service in May, in a game-changer for Canadian energy with ripple effects around the world.   

The 590,000 barrel-per-day expansion for the first time gives customers outside the United States access to large volumes of Canadian oil, with the benefits flowing to Canada’s economy.   

According to the Canada Energy Regulator, exports to non-U.S. locations more than doubled following the expansion startup, averaging 420,000 barrels per day compared to about 130,000 barrels per day in 2023.  

The value of Canadian oil exports to Asia has soared from effectively zero to a monthly average of $515 million between June and October, according to ATB Economics. 

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With the recent completions of the Trans Mountain expansion and Coastal GasLink pipelines, and the looming completion of LNG Canada within the next year, there are few major energy projects with the green light for one of the world’s largest and most responsible energy producers.

Which leaves a lingering question: In a world that has put a premium on energy security, what’s next for Canada?

Heather Exner-Pirot, a senior fellow and director of the natural resources, energy and environment program at the Macdonald-Laurier Institute, said Natural Resources Canada’s major projects inventory “has been in a pretty sharp decline since 2015, which is concerning.”

“It’s not just oil and gas but also mining, also electricity . . . It’s the overall context for investment in Canada,” said Exner-Pirot, who is also a special adviser to the Business Council of Canada.

“When we look at BC, we see TMX, Coastal GasLink, very soon LNG Canada will be finishing up. That’s probably in the order of $100 billion of investment that that province will lose.

“So you do start to think about what happens next. But there are some things on the horizon. I think that’s part of it. Other LNG projects where maybe it wasn’t politically popular, it wasn’t a social licence, and maybe the labour force was also constrained, and now is opening opportunities.”

A recent analysis conducted by Exner-Pirot found that between 2015 and 2023, the number of energy and natural resource major projects completed in Canada dropped by 37 per cent. And those that managed to be completed often faced significant delays and cost overruns.

One notable project Exner-Pirot expects to fill the void is Ksi Lisims LNG, which is being developed on the northwest coast of Canada to export low-carbon LNG to markets in Asia. The project represents a unique alliance between the Nisga’a Nation, Rockies LNG and Western LNG.

Ksi Lisims LNG is a proposed floating LNG export facility located on a site owned by the Nisga’a Nation near the community of Gingolx in British Columbia.

The project will have capacity to produce 12 million tonnes of LNG per year, destined for markets in the Pacific basin, primarily in Asia where demand for cleaner fuels to replace coal continues to grow.

As well, the second phase of the LNG Canada export terminal in Kitimat, B.C. shows increasing signs of moving forward, which would roughly double its annual production capacity from 14 million tonnes to 26 million tonnes, Exner-Pirot added.

While nearby, Cedar LNG, the world’s first Indigenous-owned LNG export facility, is closing in on the finish line with all permits in place and early construction underway. When completed, the facility will produce up to three million tonnes of LNG annually, which will be able to reach customers in Asia, and beyond.

According to the International Energy Agency, the world is on track to use more oil in 2024 than last year’s record-setting mark. Demand for both oil and natural gas is projected to see gradual growth through 2050, based on the most likely global scenario.

Kevin Birn, chief analyst for Canadian oil markets at S&P Global, said despite the Trans Mountain expansion increasing Canada’s oil export capacity by 590,000 barrels per day, conversations have already begun around the need for more infrastructure to export oil from western Canada.

“The Trans Mountain pipeline, although it’s critical and adds the single largest uplift in oil capacity in one swoop, we see production continue to grow, which puts pressures on that egress system,” he said.

Birn said Canada remains a major global player on the supply side, being the world’s fourth-largest producer of oil and fifth-largest producer of natural gas.

“This is a really important period for Canada. These megaprojects, they’re generational. These are a once-in-a-generation kind of thing,” Birn said.

“For Canada’s entire history of being an oil and gas producer, it’s been almost solely reliant on one single export market, which is the United States. That’s been beneficial, but it’s also caused problems for Canada in that reliance from time to time.

“This is the first time Canada will enter the global marketplace as a global player, so it is an incredibly important change for the industry.”

Exner-Pirot said Canada has the ability to become a major exporter on the energy front globally, at a time when demand is accelerating.

“We have open water from B.C. to our allies in Asia . . . It’s a straight line from Canada to its allies. This is a tremendous advantage,” she said, noting the growth of data centres and AI is expected to see demand for reliable energy soar.

“We are seeing growing electricity demand after decades of plateauing because our fridges got more energy efficient and our washers and dryers got more energy efficient. Now we’re starting to see for the first time in a long time more electricity demand even in developed countries. These are all drivers.”

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Canada’s emerging liquefied natural gas (LNG) industry has an opportunity to become a key supplier for energy-hungry countries in Asia and beyond following the U.S. pause on new or pending LNG export approvals, industry watchers say. 

With much of the world looking for alternatives to Russian natural gas following its invasion of Ukraine in 2022, the U.S. emerged as the number one global exporter of LNG. According to the International Energy Agency, the U.S. accounted for 80 per cent of additional supply in 2023. 

But with the U.S. putting its LNG industry on pause, the timing could be good for Canada. 

The recent completion of the Coastal Gaslink pipeline along with progress on Canada’s first LNG export projects are bringing Canada closer to becoming a key global supplier. 

An opportunity to showcase clean LNG 

As the LNG Canada terminal moves into its final stages of construction, Kitimat, B.C. will become the gateway for exports from Canada. 

For First Nations LNG Alliance CEO Karen Ogen, this means Canada, which has so far missed the global LNG boom, will have another chance at becoming a player.  

“I think this is an opportunity for us to showcase our clean LNG and I think we can do it through the various projects [underway].” Ogen said. 

Those projects, which include LNG Canada and Woodfibre LNG that are under construction, along with the proposed Cedar LNG and Ksi Lisims LNG terminals, will operate with an emissions intensity less than half that of the global average.  

Cedar LNG, headed by the Haisla First Nation, will operate at less than one-third of the global average. 

Ogen said these projects will create significant prosperity, not just for Canada and B.C. but for Indigenous peoples as well. 

“It’ll help boost our Canadian economy, it’ll help B.C.’s economy, and most specifically it will help the Indigenous people and our economy. If we’re the most disadvantaged population living in poverty, then this should help our people get out of poverty.” she said. 

“Everyone wins if Canada can get into the game.” 

Reduced LNG supply could increase reliance on coal 

Racim Gribaa, founder and president of Global LNG Consulting Inc., said a potential decrease in LNG exports to international markets, particularly in Asia, may heighten dependence on coal, thereby escalating global emissions. 

“If [importers] can’t get U.S. LNG, they would be left with very few viable alternatives including coal. And if they burn coal, that’s twice as much emissions. Coal is cheaper and reliable, but emits twice as much carbon. Countries in Asia such as China, with over 1,140 operational coal plants, are building new coal plants every week both in Asia and abroad,” Gribaa said. 

Canada has a significant geographical advantage to supply LNG to Asia that can reduce associated transportation emissions by up to 60 per cent, he said.  

Export terminals in B.C. are about half the distance to Asia compared to terminals on the U.S. Gulf Coast. 

“The distance between Canada and the key market is a huge advantage, where we are the same distance to Asia as Australia,” Gribaa said. 

“Monetizing natural gas in Canada through LNG exports not only will help reduce global emissions but it also will enhance health and economic well being of Canadians future generations.” 

Establishing Canada’s LNG credibility 

The starting point will be LNG Canada in 2025, which will allow Canada to export LNG on international scale, Gribaa said. It will help establish Canada’s credibility as a supplier, just as the U.S. pauses new development.  

Once that credibility is established, Canadian LNG could become a bigger player on the global scale. 

“Canada’s abundant natural gas reserves empower the nation to produce and export decades of dependable, cost-effective, and environmentally-friendly LNG to global markets, leveraging direct marine routes unaffected by constraints like the Panama or Suez Canals, the Strait of Hormuz, or having to navigate around the Cape of Good Hope,” Gribaa said.  

“Canada stands poised to secure market share for years to come, irrespective of whether the U.S. temporarily halts or reconsiders its involvement.” 

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Faced with soaring costs that rippled across economies, governments around the world embraced the critical need for energy security in 2023, adopting a more pragmatic approach to achieving climate goals. 

The world used more crude oil and coal in 2023 than anytime in human history, while global demand for liquefied natural gas (LNG) continued to grow as a vital fuel source, primarily in Europe and Asia. 

Europe in particular stepped back from some of its more aggressive timelines for reducing its reliance on oil and gas, with some nations striking long-term supply deals for LNG, returning to burning coal, or renewing investment in oil and gas exploration. 

Economic powerhouses China and India increasingly turned to coal to power their developing economies, spurring global growth of the most emissions-intensive fuel, while the U.S. maintained its lead as the world’s largest producer of oil and gas, setting new high water marks for both. 

Canada, meanwhile, saw steady progress on some key energy projects, completing construction of the Coastal GasLink pipeline, achieving major milestones on the LNG Canda export terminal, seeing the Trans Mountain pipeline expansion near completion, and the approval of a new major oil sands project for the first time in five years. 

The following is a recap of some of the key events from 2023, outlining how oil and gas have once again taken centre stage in the aftermath of Russia’s 2022 invasion of Ukraine, and the global energy crisis that it made worse: 

January 

• Japanese Prime Minister Fumio Kishida visits Canada to make a personal appeal for more access to LNG. Like German Chancellor Olaf Scholz just five months earlier, Kishida is essentially rebuffed by Prime Minister Justin Trudeau. 
• The International Energy Agency predicts that global oil demand will reach a record high in 2023, an increase of 1.9 million barrels per day from 2022’s previous peak. 
• With LNG emerging as a critical resource to deal with the lingering global energy crisis, the United States catches up to Qatar as the world’s largest exporter.  

February 

• India’s Prime Minister Narendra Modi projects his country will see demand for natural gas rise by 500 per cent while its share of global oil demand will increase from 5 to 11 per cent over the next 20 years. Meanwhile, India begins the search for long-term suppliers of LNG in an effort to reduce its reliance on coal. 
• The bill for the 2022 energy crisis comes due in Europe, where it’s learned European governments shelled out nearly US$900 billion to shield households and businesses from its impacts. Germany, which was a world leader in transitioning to renewable energy led the way in efforts to blunt the energy crisis’ impact, handing out nearly US$300 billion in subsidies. 
• Recognizing the rising global importance of reliable energy, Canadian oil producer IPC greenlights the first major new oil sands project in five years. The C$1.1 billion Blackrod project, which will be built to produce 30,000 barrels per day, is expected to be in operation by 2026. Meanwhile, Cenovus Energy filed an application to extend production at its Christina Lake oil sands project to 2079. 

March 

• China shows signs of economic resurgence after re-opening from its sweeping “zero-Covid” policies. The IEA projects China will account for nearly half of all projected growth in oil demand in 2023. 
• In the U.S., the Biden Administration approves a massive new oil project in Alaska, expected to produce as much as 180,000 barrels per day of crude oil over the course of 30 years. The project is also estimated to create some $17 billion in revenue for the U.S. federal government. 
• A new report by the UK-based Energy Transitions Commission finds that global investments in green energy would need to increase to $3.5 trillion per year in order to reach global net zero targets by 2050. That would add up to $110 trillion in new spending by 2050, more than the world’s current combined GDP. 

April 

• Indigenous leaders involved in Canada’s energy industry meet with diplomats from several of Canada’s G7 allies to make the case for being at the table when it comes to helping provide the energy the world needs. With Indigenous communities playing crucial roles in developing Canada’s LNG capacity, participants said diplomats showed significant interest in building economic relationships. 
• Leaders of the G7 meet in Hiroshima, Japan and agree that LNG will play an “important role” in helping navigate the global energy crisis and further investment in the industry is crucial. Despite pressure to agree to a full phase out of coal by 2030, the G7 will only agree to “accelerating the phase out of domestic unabated coal.” 
• A global survey that polled over 24,000 people in 28 countries found that Canada was the number one choice for countries that import oil, citing Canada’s strong record of democracy and environmental safety compared to other major producers like Saudi Arabia and Russia. 

May 

• Recognizing the growing need for energy security across Europe and the world, Norway says oil and gas companies have a “social responsibility” to find more oil and natural gas resources in the northern Barents Sea adding they should “leave no stone unturned” in the pursuit of the critical resources. A month later Norway approves $18.5 billion to develop 19 offshore oil and gas projects. 
• Skyrocketing demand for oil, led primarily by China’s economic surge, forces the IEA to recalculate its predictions for the year, upgrading its demand growth estimate to 2.2 million barrels per day to further increase record usage around the world. 
• Canada’s Public Policy Forum estimates phasing out the country’s oil and gas industry in an effort to reduce emissions will lead to the loss of some $100 billion to the nation’s economy by 2050, with Alberta bearing the brunt of the blow. “This essentially amounts to a deep recession without a recovery ever materializing,” the authors wrote. 

June 

• Qatar signs the first of several long-term LNG deals it will sign in 2023. Staring with two 27-year agreements to supply China with LNG, the Middle East supplier then signs another 15-year agreement with energy-starved Bangladesh. 
• Despite Western sanctions, Russian oil companies see gasoline exports jump 37 per cent compared to 2022 thanks to new customers in Africa and Asia. Meanwhile, China’s crude oil imports from Russia soar to a record high. 
• The annual Statistical Review of World Energy shows that record increases in solar and wind installations in 2022 failed to make a dent in the dominance of oil and gas in the global energy mix. Even with a record increase of 266 gigawatts of new renewable capacity, oil,gas and coal continued to represent 82 per cent of global energy consumption. 

July 

• The U.K. announces it will grant hundreds of new licences for oil and gas exploration in the North Sea in an effort to ensure energy security. Prime Minister Rishi Sunak says even if the U.K. achieves net zero by 2050, oil and gas will still be used for at least a quarter of its energy needs. 
• Japan, one of the world’s largest energy importers, calls for the creation of a global emergency reserve for natural gas to avoid future shortages and price spikes. 
• With rising global demand for LNG, the CEO of QatarEnergy predicts the tiny Middle Eastern nation will supply some 40 per cent of new LNG coming to market by 2029 as the U.S. works to significantly ramp up its industry.  

August 

• Independent researchers announce that China continues to ramp up coal power use, permitting 52 gigawatts of new capacity over the first six months of 2023. The additional plants would increase China’s coal burning capacity by 23 per cent. 
• Independent analysis by S&P Global finds that Canada’s oil sands emissions remained flat in 2022, despite production growth, a positive sign that measures to reduce emissions  are working. 
• For the second year in a row, Pakistan is forced out of the pricey LNG market, putting the impoverished country at high risk of a national energy crisis. 

September 

• Meeting in India, leaders of the G20 highlight the importance of energy security, and while agreeing to triple renewable capacity by 2030 avoid any language calling for a phase out of fossil fuels. Fault lines emerge between the West and developing nations that want to harness oil, natural gas and coal to grow their economies. 
• The IEA releases its updated road map for reaching net zero, suggesting global demand for fossil fuels will peak before 2030. The stance is blasted by OPEC as one that could lead to global “energy chaos” and ignores the IEA’s own acknowledgement that one the world’s current trajectory, oil, gas and coal will still account for 62 per cent of the world’s energy mix in 2050, compared to 78 per cent in 2021. 
• Saudi Aramco, one of the world’s largest oil producers, announces its intention to enter the burgeoning LNG industry, buying a minority stake in MidOcean Energy, which is looking to obtain stakes in four Australian LNG projects. 

October 

• Qatar officially breaks ground on the world’s largest LNG project, which will expand its production capacity from 77 million tonnes per year to 110 million tonnes per year. The groundbreaking coincides with three new 27-year LNG supply agreements with France, Italy and the Netherlands.  
• In its annual World Oil Outlook, OPEC warns the world will need $14 trillion in new investments in the oil sector by 2045 to ensure market stability and reduce the likelihood of energy shortages and economic chaos. 
• The U.S. eases sanctions on Venezuela’s oil sector in exchange for the promise of free and fair elections for the South American dictatorship. Less than two weeks later, Venezuela’s supreme court suspends the results of an opposition party’s primary ahead of a 2024 national election. 

November 

• Three years after shovels first hit the ground, TC Energy announces it has reached mechanical completion of the Coastal GasLink pipeline. The 670-kilometre will be a critical piece of infrastructure for Canada’s developing LNG industry. 
• Despite its earlier World Energy Outlook suggesting a looming peak for oil demand, the IEA revises its prediction for 2024, estimating global demand for oil will reach a new record high of 102.9 million barrels per day next year. A more bullish OPEC predicts oil demand will reach 104.4 million barrels per day in 2024. 
• The U.K. government says it’s working toward legislation that would make annual oil and gas licensing rounds for the North Sea mandatory if the country is set to import more oil and gas than it produces domestically. 

December 

• World leaders leave COP28 in Dubai agreeing to eventually transition away from fossil fuels, aiming to reach carbon neutrality by 2050. But a key inclusion calls for the acceleration of low- and zero-emission technology like carbon capture and storage, an innovation in which Canada is a global leader. 
• Fresh off the U.S. lifting sanctions on its oil industry, Venezuela claims sovereignty over an oil-rich region of neighbouring Guyana – accounting for about two-thirds of its territory – after ignoring ongoing proceedings in the International Court of Justice to settle the long-standing dispute. 
• Russia says its crude oil exports will be seven per cent higher than in 2021 despite ongoing sanctions from the West. After losing most of its European customers, Russia reports that China and India now account for more than 90 per cent of its crude oil exports.  

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The massive Montney natural gas play in Alberta and B.C. is growing in importance as world liquefied natural gas (LNG) demand surges and Canada nears completion of its first LNG export project.  

The Montney – which rivals the Marcellus, the largest natural gas play in the U.S., for available resources – has seen more than $16 billion worth of ownership deals in the last two years, according to Evaluate Energy.  

But the play is still in its early innings, say analysts with RBC Capital Markets.  

That’s good news for LNG, where the world needs more supply over the long term. 

“LNG is in greater demand than ever before and continues to drive economic growth and enhance energy security across the world,” said Joseph McMonigle, secretary general of the International Energy Forum (IEF). 

Based in Riyadh, Saudi Arabia, the IEF represents energy ministers from 72 producing and consuming nations including Canada, the United States, China, India, Germany and the United Kingdom.  

After reaching a record 390 million tonnes in 2022, world LNG demand is expected to grow by another 25 percent to 500 million tonnes annually in five years, according to a new IEF report. 

While Canada currently ships a small amount of LNG overseas by shipping container, it has yet to export any large quantities by LNG ocean carriers. This will change with the completion of the $18 billion first phase of the LNG Canada project, expected by 2025.  

The recently completed Coastal GasLink pipeline will carry natural gas from the Montney play to the terminal.  

Coastal GasLink will result in a step change in how natural gas is produced, shipped and priced in western Canada, RBC said.  

Its initial capacity of 2.1 billion cubic feet per day can be increased to 5 billion cubic feet per day with additional compression facilities along the route. And through the less-than-a-kilometer long Cedar Link connector, Coastal GasLink would feed the proposed Cedar LNG project, led by the Haisla Nation.  

Montney gas will also supply the Woodfibre LNG project and is planned to feed the proposed Ksi Lisims LNG project, led by the Nisga’a Nation.  

The Montney now provides roughly half of Canada’s existing natural gas production, or about 10 billion cubic feet per day, RBC said.  

Analysts predict that by 2030, roughly two thirds of all natural gas wells in western Canada will target the Montney play, producing about 18 billion cubic feet per day by the end of this decade.  

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As construction of the Coastal GasLink pipeline is completed, the project is leaving a new community legacy in northeast B.C.  

A $50,000 gift to the North Peace Community Foundation will create the Coastal GasLink Community Fund, benefitting local non-profits that support children, families, seniors and newcomers.  

“I have always said to my colleagues, if you want an industry that understands the importance of community, you look to the energy sector, in particular the oil and gas industry,” said Lori Ackerman, chair of the North Peace Community Foundation and former mayor of Fort St. John, B.C. 

“We’re going to be able to take the funds from this sponsorship and really enhance the impact in the region, supporting initiatives that create the social fabric of the community. The social fabric needs to be constantly mended. It’s like having a hole in your sock. You’ve got to darn that hole and fix everything. This is the kind of funds that will help us to do that.”

About 72,000 people live in northeast B.C., according to the Chartered Professional Accountants of British Columbia.  

In all, Coastal GasLink and owner TC Energy report spending over $11 million on community investments in northern B.C.   

This includes initiatives like the Burns Lake Youth Soccer Association, Chetwynd Medical Centre, Crisis Centre of BC, Houston Search and Rescue, Morice Mountain Nordic Ski Club, and Fort St. John Public Library Association. 

“Our industry is a very giving industry. They understand community,” Ackerman says. 

In 2021, the city of Fort St. John provided $3 million to launch the North Peace Community Foundation, which is designed to manage community gifts like the donation from Coastal GasLink.  

One of the foundation’s founding members is Petronas, a partner in the LNG Canada export terminal under construction at Kitimat, B.C. The terminal is connected to B.C. natural gas production through Coastal GasLink.  

After a decade in development, the project announced in early November that 100 per cent of pipe is now installed. The LNG Canada terminal targets its first export shipments by 2025.  

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“Incredible progress” continues on the Coastal GasLink pipeline, with 98 per cent of pipe now installed. 

The project has also achieved a major milestone with completion of all 800 water crossings along the route from northeast B.C. to the LNG Canada terminal being built in Kitimat. 

This includes 10 major “trenchless” water crossings, the project reported in its latest construction update.  

Where a “trenched” watercourse crossing involves digging a trench through a flowing watercourse, trenchless crossings use horizontal drilling so there is little to no disturbance to the riverbed or banks, according to the Canada Energy Regulator.  

Coastal GasLink has used a trenchless micro-tunneling approach in areas such as crossing the Wedzin Kwa (Morice River) near Houston, B.C.  

As the First Nations LNG Alliance described, this creates a tunnel beneath the riverbed using a remote-controlled tunnel boring machine. Then hydraulic jacks push concrete casing segments through the tunnel.  

Coastal GasLink completed the Morice River crossing in July. 

In August, the fifth of eight pipeline segments was completed by Nadleh-Macro, a partnership between the Nadlah Whut’en First Nation and Macro Pipelines.  

In all, Coastal GasLink said it has awarded $1.7 billion in contracts to local and Indigenous businesses so far.  

There are about 4,800 people still working along the project route. Crews are ensuring the ground and topsoil is reinstated to be ready to start reclamation, and reclamation is underway in many sections along the route, the project said.   

“Until the route is completely revegetated, which could take a few years due to seasonal constraints, our crews will continue implementing and monitoring measures as required to protect the environment and meet our commitments,” Coastal GasLink said.  

Completion is expected by the end of the year. Meanwhile, at last report construction of the LNG Canada terminal is about 85 per cent complete and on track to shipping first cargos of B.C. LNG to global markets by 2025.  

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A group of Hollywood filmmakers including Mark Ruffalo, Joaquin Phoenix and Rachel McAdams is calling on the Toronto International Film Festival (TIFF) to drop RBC as its main sponsor. 

They say RBC is not a “worthy source of financing” for Canadian film because of its ongoing support for Canadian oil and gas. They claim RBC is fueling climate change and disrespecting Indigenous rights.  

They are wrong.  

RBC is helping fund climate solutions while enabling Indigenous self-determination and prosperity. And Indigenous communities do not want Hollywood to speak for them.  

Here are the facts.  

Fact: RBC primarily funds Canadian oil and gas, and the world needs more Canadian oil and gas – not less 

The world’s growing population needs access to reliable, affordable, responsibly produced energy. And a lot more of it.  

According to the United Nations, last November the global population reached 8 billion people, just over a decade after hitting the landmark 7 billion in 2011. Driven by India and China, the world’s population is projected to reach 8.5 billion in 2030 and 9.7 billion 2050.  

All those people need energy. Many don’t even have it today, with about 775 million without access to electricity last year, according to the International Energy Agency (IEA).  

Even with accelerating investment in low carbon energy resources, the world’s consumption of oil, gas and coal is as high or higher than it has ever been, with both oil and coal demand reaching new records this year, the IEA reports.  

The agency projects the world’s total energy consumption – which increased by 15 per cent over the last decade – will increase by a further 24 per cent by 2050.  

On the world’s current trajectory, the IEA says oil, gas and coal will account for 62 per cent of world energy supply in 2050, compared to 78 per cent in 2021.  

As IEA executive director Fatih Birol said last year, “We will still need oil and gas for years to come… I prefer that oil is produced by countries like Canada who want to reduce the emissions of oil and gas.” 

Canada has been a cornerstone of global energy markets and a reliable partner for years, he said. 

Fact: Coastal GasLink will help reduce emissions  

The Hollywood activists take issue with RBC’s funding of the Coastal GasLink pipeline. This is nonsensical because the project can help reduce emissions in Asia. It also has the support of and is benefiting Indigenous communities.  

One of the fastest and most effective ways to reduce emissions is to switch from coal-fired power to power generated from natural gas, traded globally as LNG.  

Consider that between 2005 and 2019, emissions from the U.S power sector dropped by 32 per cent because of coal-to-gas switching, according to the U.S. Energy Information Administration.  

The LNG Canada project – supplied with Canadian natural gas via Coastal GasLink – will have among the world’s lowest emissions intensity, at 0.15 per cent CO2 per tonne compared to the global average of 0.35 per cent CO2 per tonne, according to Oxford Energy Institute.  

Natural gas from LNG Canada alone could reduce emissions in Asia by up to 90 million tonnes annually, or the equivalent of shutting down up to 60 Asian coal plants, the project says. That’s also a reduction of more than the entire emissions of the province of British Columbia, which were 64 million tonnes in 2022.   

Expanding Canada’s LNG exports to Asia could reduce emissions by 188 million tonnes per year, or the annual equivalent of taking all internal combustion engine vehicles off Canadian roads, according to a 2022 study by Wood Mackenzie.  

“It is a disservice to take the choice of Canadian LNG away from those that need it,” Billy Morin, former chief of the Enoch Cree Nation, said earlier this year. 

Fact: Coastal GasLink benefits Indigenous communities 

The Coastal GasLink pipeline is enabling shared prosperity between Indigenous communities and Canada’s energy industry.  

Not only will it connect to the LNG Canada terminal on the traditional lands of the Haisla Nation – where the project has been transformational for the community, according to Chief Councillor Crystal Smith – but it will also provide natural gas for the proposed Cedar LNG project, in which the Haisla Nation is 50 per cent owner. 

“Cedar is not only important from a Haisla perspective, [but from] a global perspective,” Smith says.  

“Our territory is not in a bubble and protected from what is happening in Asia and India with coal burning.” 

Sixteen First Nations will become 10 per cent owners of the Coastal GasLink pipeline itself once it is completed.  

And so far, LNG Canada and Coastal GasLink together have spent more than $5.7 billion with Indigenous-owned and local businesses.    

“When there is foreign interference, especially from high-profile celebrities like Ruffalo, it sets us back. He does not think beyond the pipeline. He does not think beyond the cause of the day,” Indigenous policy analyst Melissa Mbarki wrote following a previous attack on Coastal GasLink by the actor.   

“Over the long term, such actions serve to drive away investment and keep Indigenous communities in poverty. We are dealing with so many social issues, including high rates of suicide, incarceration and homelessness. Speaking on our behalf is not the answer if you fail to acknowledge the entire story.”    

Fact: Indigenous communities speak with their own voices 

Ruffalo is a prominent activist against the Coastal GasLink pipeline, often spreading misinformation about the project’s relationship with Indigenous communities. But they are fighting back.  

“Hollywood celebrities from outside of Canada are actively campaigning against the Coastal GasLink project, claiming Indigenous People do not support it. However, 20 elected First Nations governments along the route do support it,” the Indigenous Resource Network said in a statement last year.  

“Hollywood celebrities are standing in the way of us being able to make our own decisions. Their main goal is to push their agenda and use us as talking points; ultimately, communities are left to pick up the pieces. 

“Although their intentions may be to help Indigenous people in Canada, this can be best done by allowing our people to use their own voices. We are able to decide for ourselves what is best for ourselves and our communities.” 

Fact: The film industry has its own emissions to deal with 

Rather than campaign against Canadian energy projects that can help reduce emissions and foster prosperity for Indigenous communities, Hollywood film makers could be better served addressing the emissions in their own backyard.  

A 2020 study by the British Film Institute analyzing the emissions associated with producing movies in the U.S. and U.K. found that films with a budget of $70 million or over generate an average 2,840 tonnes of CO2 pollution. 

Air travel alone to support a movie production of this scale generates equivalent emissions of flying one way from London to New York 150 times, BFI said.  

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It’s mid-2020 and there’s a woman with blue and purple hair operating an excavator on a steep slope near Kitimat, British Columbia. Wind carries whisps of cloud and rain through the trees. There’s a smell of cedar and mud. With care she moves tonnes of rock and dirt – clearing a path for a section of the Coastal GasLink pipeline, which begins in northeast B.C. near Dawson Creek and ends in Kitimat.  

Around noon, she turns off the machine, eats lunch and thinks about family in Newfoundland. 

“I absolutely love my job,” says veteran heavy equipment operator Kristy Robinson, reflecting on the excitement and challenges of working on Cable Crane Hill on Section 8 of Coastal GasLink.  

“It’s fun seeing the reaction on people’s faces when they see me in the machine and I’m not a big burley dude.” 

Kristy Robinson pauses for a photo while working on the Coastal GasLink pipeline in northwest B.C. Photo provided to the Canadian Energy Centre

With an elevation change of 700 metres, Cable Crane Hill is more of a mountain – one of many challenging sections along the 670-kilometre pipeline corridor that will deliver natural gas from B.C. for global exports.  

Heavy equipment and heavy lift helicopters battling difficult terrain were deployed to build a temporary gondola-like structure that is used to transport equipment, people, and materials up the slope.  

“I’ve got pictures of my machine above the clouds. It certainly showed me that I’m capable of doing more than I realized,” says Robinson, whose Mi’kmaq heritage strengthens her resolve to overcome challenges.  

“Sitting on the top of that hill and looking down, it’s a long way to the bottom.” 

Robinson is also a long way from her start as a heavy equipment operator student at the College of the North Atlantic in Newfoundland in 2005.  

“My family want me home,” she says. “But it’s hard to get a job as a female equipment operator back home and there is limited work.” 

The Cable Crane Hill crew became tight knit over the months, says Robinson, noting there were few visitors to the remote site. She began working for Coastal GasLink prime contractor Macro Spiecapag Joint Venture in 2019. She started at Cable Crane Hill in the summer of 2020 and left with the onset of winter for other work on the pipeline. 

“With the help of the people I worked with, we all built each other up and helped each other – it was a team effort,” she says. 

As the $14.5 billion Coastal GasLink nears completion, Robinson has pivoted to reclamation work on another section of the project near Burns Lake, B.C. She’s currently working for Michels Canada and is spending less time in heavy equipment after moving up the ranks. 

Meanwhile, pipe installation and mechanical work continues at Cable Crane Hill, part of a section that is now 95 per cent complete. The entire pipeline is 90 per cent constructed and expected to be complete by the end of this year. 

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Even though Kitimat, B.C. receives around two metres of rain a year, nothing can dampen the spirit of its three-term mayor when it comes to the emerging liquefied natural gas (LNG) export industry and its benefits.

Phil Germuth is enthusiastic as he speaks about the west coast town of 9,000 permanent residents. There’s a lot happening – around 6,000 camp-based construction workers at the LNG Canada site within eyeshot of town and 6,000 in the region and beyond working to complete the Coastal GasLink pipeline. The proposed Cedar LNG terminal, 50 per cent owned by the Haisla Nation, will also create hundreds of construction jobs.

“Kitimat is a great example of Canadian industries that are at the leading edge of environmental protection,” says Germuth, who owns a local automotive repair business.

“We have Rio Tinto, our smelter here, that’s newly rebuilt and producing the greenest aluminum anywhere in North America, and we have the LNG Canada facility when up and running will have the lowest carbon footprint of any major LNG facility on earth.”

The $18 billion first phase of LNG Canada is forecast to begin operating in 2025 and will create 300-450 direct long-term jobs. The $3 billion Cedar LNG project has regulatory approval to proceed under 250 binding conditions and could be in operation by 2027 with around 100 permanent jobs. The $14.5 billion Coastal GasLink pipeline, stretching 670 kilometres from northeast B.C. to Kitimat, is scheduled for completion in 2023 and will supply natural gas to LNG Canada and Cedar LNG.

After reaching the west coast, pipeline gas will be converted to LNG, pumped onto vessels, and shipped out the Douglas Channel to open ocean – primarily to Asian markets to meet rising energy demand while helping lower emissions by displacing coal-fired power generation.

Switching from coal to natural gas reduces emissions by half on average, according to the International Energy Agency. Canadian LNG can deliver an even bigger decrease, reducing emissions by up to 62 per cent, according to a June 2020 study published in the Journal for Cleaner Production.

The town of Kitimat on British Columbia’s west coast. Photo courtesy District of Kitimat

Two new hotels have been built to support Kitimat’s LNG industry, says Germuth, noting workers are spending money at local businesses. A new brewery has opened. Thirty-six new homes are being built. The Haisla Bridge, which connects Kitimat to its industrial area, is being replaced – a $55 million project.

“The economy is doing well,” he says, noting many residents are renovating their homes with the confidence of a return on investment.

According to statistics compiled by the District of Kitimat, residents are earning top wages. Median household income grew from $98,300 in 2017 to $111,500 in 2020, while median individual income rose from $49,600 to $57,300.

The number of businesses in Kitimat grew from 216 in 2017 to 250 in 2022. Business license sales grew from 5 per cent to 10 per cent year-on-year since 2017 – currently at a record high of 766 new licenses. Rental vacancy has dropped from 44.1 per cent in 2018 to 23.8 per cent in 2023.

A benefit of Kitimat’s nascent LNG industry is an improved relationship between local Indigenous people and the town, says Germuth, adding LNG Canada sets a high standard when it comes to consultations with First Nations.

“Before, the relationship between the Haisla Nation Council and the District of Kitimat really wasn’t there,” he says. “LNG Canada came in and what they started doing is bringing us together.”

Germuth is hoping for another LNG terminal or hydrogen facility. However, there’s more to Kitimat than heavy industry, he says. The region is replete with natural beauty and outdoor recreation opportunities – from fishing to mountain biking.

“We are very fortunate,” he says.

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