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 the 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.
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 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.
Dow’s manufacturing site in Fort Saskatchewan, Alberta. Photo courtesy Dow
the project is spurring a boom in the region, with nearly 200 industrial projects worth about $96 billion now underway or nearing construction.
2. CONSTRUCTION STARTS ON $8.9 BILLION NET ZERO
PETROCHEMICAL PLANT 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.
The “Golden Weld” marked mechanical completion of construction for the Trans Mountain Expansion Project on April 11, 2024. Photo courtesy Trans Mountain Corporation
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INDUSTRY • SPOTLIGHT ON BUSINESS MAGAZINE 51
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