Report from Parliament's Hill - September 3, 2010

By Prince George - Peace River M.P. Jay Hill

Shale Gas: More Prosperity for Northern BC


Last week I discussed how the positive performance in the mining sector meant a promising future for northern British Columbia.  Allow me to further inflame your optimism by detailing what the exhilarating developments in the natural gas sector mean for our region…and our environment.

Canada is already the third largest natural gas producer in the world (next to Russia and the United States).  We currently produce 5.6 trillion cubic feet (Tcf) per year, 60 percent of which is exported.

Creating a “buzz” and excitement in northern BC is the big “game changer” in the natural gas sector... Shale Gas.

Shale gas is natural gas trapped within shale rock and was previously challenging and prohibitively expensive to extract.

However, with new technologies, such as horizontal drilling and more efficient "fracturing" of the rock, the ability to access shale gas cost-effectively continues to improve significantly. It’s estimated there are about 250 Tcf of natural gas in northern BC.

Currently the largest known shale gas field in Canada is our very own Horn River Basin which has attracted investment and drilling activity by EnCana, Apache, Exxon, Imperial and EOG Resources, among others.

What’s unique about the Horn River development is the level of cooperation among all stakeholders.  Members of the Horn River Basin Shale Gas Producers Group work closely with the Northern Rockies Regional Municipality, the Town of Fort Nelson and First Nations communities to address concerns and needs so that our ability to seize these new opportunities remains ‘on track’.

This includes heeding the experiences of Fort McMurray and avoiding the ‘downside’ of development.  That’s vital for an area where it’s expected that upwards of 5,000 wells could be drilled over the next decade!

Natural Gas emits about half of the carbon dioxide emissions as conventional coal plants.  When you consider that China is currently constructing the equivalent of two, 500 megawatt, coal-fired plants per week, the drive to get our natural gas to Asian markets should be a priority for ALL of us.

That requires cooperation in advancing natural gas production AND in promoting the Liquefied Natural Gas (LNG) supply chain.  Delivered through pipeline systems to an LNG facility, where it’s liquefied, or chilled, natural gas becomes a clear, colourless, odourless, non-corrosive and non-toxic liquid, which is feasible to transport long distances via ocean tankers, for example.  Once it reaches its destination, LNG is re-gasified and transported via pipeline to users.

Essential to converting BC’s natural gas to clean energy in the Pacific Rim are two key projects:  the LNG terminal at Kitimat and Pacific Trail’s Kitimat-Summit Lake pipeline loop which will connect Spectra Energy’s Westcoast pipeline system to the Kitimat terminal.

These transmission initiatives should be where the interests of natural gas producers, pipeline companies and environmental groups naturally converge.

And, speaking of Spectra, once again they've demonstrated their historic commitment to our region when just last week their directors travelled from all over North America to hold their meetings in Fort Nelson.

Shale gas and the LNG supply system, as a means to deliver clean energy, are not only key to our region’s economic future, they are vital to the future of our planet!

Email | Print | Facebook | Twitter | Digg | Del.icio.us