Oil and Gas Upcoming Projects in Canada

Currently, Canada is undergoing a huge boom in the oil and gas industry. In fact, many of the largest companies in the world are putting plans to develop new projects in the country. This includes Enbridge, Cenovus Energy, Heartland Energy and Woodside Petroleum.

Cenovus Energy

Having survived the last decade of low commodity prices, Canada’s oil and gas companies are now spending their excess cash on rewarding shareholders and cutting debt. Cenovus Energy and Husky Energy have announced they will merge operations and become Canada’s third-largest oil and natural gas producer.

The merger will bring together Husky’s Lloydminster oil production in Saskatchewan and Cenovus’s West White Rose oil project in Newfoundland and Labrador. It would give the new company a combined 660,000 b/d of oil and gas production capacity. It also would add 350,000 b/d of heavy oil conversion capacity.

The merger is expected to close by 2022. The new company will still be based in Alberta and will continue its operations under the Cenovus brand. Its shareholders will receive $10.2 billion in enterprise value and 0.0651 share purchase warrants for each Husky share.

In the first year, Cenovus’s royalty regime will be fixed at one per cent. Its capital costs will be offset by deferred decommissioning costs. The business plan assumes decommissioning costs of $1.6 billion to $1.8 billion over the next five years.

The merger will also add a third major gas project to Cenovus’s portfolio. The Bay du Nord project would be located in the Flemish Pass Basin, about 500 km northeast of St. John’s, Newfoundland. It would be operated for 30 years. Environmental groups have been critical of the project. They have also launched a lawsuit to stop the approval.

Cenovus and Husky have a deep Canadian connection. Husky’s parent company, Hong Kong billionaire Li Ka-shing, controls almost 70% of the company’s shares. This year, Husky’s shares have fallen by 60%.

The merger will also create a second-largest oil refiner in Canada, behind BP. Cenovus estimates that the combined company will produce 800,000 boepd by 2022.

Enbridge

Several pipeline projects are being developed by Enbridge Inc., an energy transportation company based in Calgary. These projects provide good jobs and access to growing international markets. They also expand Enbridge’s energy portfolio.

Enbridge owns and operates Canada’s largest natural gas distribution company. The company also owns pipelines throughout the country. It also has a strong focus on renewable energy and natural gas projects. It recently acquired the largest crude export terminal in North America. It is also considering expanding its LNG business.

In the summer and fall, Canadian oil production volumes ramp up. These volumes are shipped into the United States through the Mainline pipeline network, which is operated by Enbridge. This system is the world’s longest liquids pipeline system. It is a key component in moving western Canadian crude oil production to markets in eastern Canada and the Midwest.

The system has approximately 6 600 km of operating pipeline. It also has auxiliary infrastructure such as pumping stations and refineries. The system’s volumes averaged 2.95 million b/d for the full year.

As part of its Lakehead System Expansion Program, Enbridge plans to increase the capacity of Line 67 to 800,000 bpd. It will also add pumping horsepower and increase the number of crude oil tanks at existing sites. Phase 2 is expected to be in service in 2015.

Enbridge also has plans to expand its T-South pipeline system to serve southern B.C., the Pacific Northwest and the Woodfibre LNG project in British Columbia. It is expected to file regulatory applications for these expansions by 2024. These projects are estimated to cost $400 million.

The T-South system will also connect Montney shale gas supplies to the LNG facility. The pipeline will also transport natural gas to the Venture Global Plaquemines LNG plant in Louisiana.

Woodside Petroleum

Founded in 1949, Woodside Petroleum is an oil and gas project developer in Canada. Its assets include two gas production facilities in Western Australia, a floating production facility in the US Gulf of Mexico, and a 100,000 b/d oil field in Senegal. The company is also involved in liquefied natural gas projects in Australia, Canada, and China. Its assets include a 50% interest in the Kitimat project in British Columbia.

The company’s main focus is on natural gas and liquefied natural gas. It is known for its global portfolio. It is the largest independent oil and gas company in Australia. The company is also known for its strong focus on energy supply security. The company has three major investments in the works, including Scarborough and Pluto Train 2 in Australia, and Mad Dog Phase 2 in the US Gulf of Mexico.

In the second quarter of 2022, Woodside expects to report full year net profit of $40 million to $60 million. It also expects to record a $720 million writedown on its investments in western Canada. The charge will reflect uncertainty surrounding the timing of the development of the Liard natural gas project.

The company expects to update its reserves statement in August 2022. It will restate its production using updated conversion factors. It will also report its production in volumetric basis. It will also report Canadian pipeline natural gas production in its production target range.

The company also announced it will sell a 50% interest in the Kitimat LNG project. It will also sell a portion of its Pacific Trail Pipeline route. The company says the transaction includes a $354 million writedown of assets and adjustments in working capital. The company says it will use the proceeds to pay back its net expenditures on the project.

Equinor

Earlier this year, Norwegian oil company Equinor announced its decision to invest in Canada. The company is planning to develop an oil field in the deepwater Flemish Pass Basin offshore Newfoundland. This project is estimated to cost $12 billion, and could produce 200,000 barrels of oil per day. The field would operate for 30 years, and it could generate billions of dollars in government revenue.

While the project is still in the early stages, Equinor said it plans to drill two exploration wells this year. It plans to use a semi-submersible rig, called the West Hercules, to drill the Sitka prospect and the Cambriol Central prospect.

The project is expected to create thousands of jobs in Atlantic Canada, and generate billions of dollars in government revenue. However, the project has faced opposition from environmental groups. The Sierra Club Canada Foundation has filed a petition to overturn the project. The environmental law charity Ecojustice has also asked the Canadian government to review the environmental approval for the project.

The Bay du Nord project is in a deep water area of the Atlantic Ocean about 500 kilometers northeast of St. John’s, Newfoundland. It would operate for 30 years and produce up to a billion barrels of oil over its lifetime. The project would emit about 400 million tonnes of greenhouse gases, equivalent to seven to ten million fossil fuel cars. It would also have to meet stringent environmental standards.

Equinor, along with its partners, is working to develop the Bay du Nord field using a float-on, float-off production facility, or FPSO. Using this technology, the company says it can significantly reduce the facility’s carbon footprint. It would be the first use of technology offshore Canada.

Heartland

Several major oil and gas companies have plans for multi-billion dollar projects. These include the Heartland Project, a pipeline quality Renewable Natural Gas (RNG) project. The project will be developed by AgEnergy USA, LLC, a company with 28 years of experience in complex energy infrastructure projects.

The project includes construction of a 200 km pipeline and a terminal facility in the Heartland industrial area northwest of Edmonton. It will also include railcar loading and storage facilities. This project will create jobs and will connect the Edmonton region to Hardisty, Alberta.

The Heartland Petrochemical Complex is a world-scale integrated complex, consisting of a propane dehydrogenation (PDH) and polypropylene (PP) production facility. The facility will convert propane sourced from local sources into polymer grade propylene, which will then be used for various applications. It is expected to have a greenhouse gas footprint of 65 per cent lower than the global average. This will make it the most reliable option in the industry.

The Heartland Project has a contract to sell 7,000 dekatherms of RNG per day to Sacramento Municipal Utility District in California. This project is currently in Phase I and is expected to commence service in the second half of 2015.

Inter Pipeline Ltd. has approved the construction of Canada’s first integrated PDH and PP complex in Strathcona County, Alta. It is expected to produce 525,000 tonnes of polymer-grade propylene per year. This project will also create job opportunities and will increase the capacity of the company’s NGL processing business.

Heartland has access to global markets and has been recognized as a strategic location for utility islands. This region is well-positioned to play a foundational role in Canada’s hydrogen economy. It has access to a wide range of feedstocks, including crude oil and natural gas.