Subject: Electrification of Natural Gas Production in Northeast BC
Summary: The Clean Energy Association of BC (CEBC) sees an opportunity to support clean growth and climate policy in the province through the electrification of natural gas production in Northeast BC. CEBC estimates this action could reduce GHGs by 13-15 MT/year. However, it needs timely action from the BC government in the Regional Electricity Cooperation and Strategic Infrastructure Initiative (RECSI) process to make it a reality.
Background:
• More than 70% of the natural gas production in BC is produced in Northeast BC. This region (known as the Montney) contains about …show more content…
• Gas production (and hence GHG emissions) in Montney are increasing faster than expected. BC Hydro had forecast that Montney production would reach 7 bcf per day by 2028. However, Wood Mackenzie forecasts production would reach that amount by 2019. Recently, TransCanada announced at $1.4 billion investment in the North Montney Mainline Pipeline. And several new gas processing plants are being planned in NEBC.
• Convincing gas producers to use electricity instead of gas for extraction, transportation and processing is becoming more attractive with a rising carbon tax and offers a big win in the fight against climate change. The oil and gas industry produces around 18 per cent of B.C.’s GHGs.
• The existing the Dawson Creek and Chetwynd Area Transmission Line (DCAT) only reaches a small portion of Northeast gas producers. According to the Ministry of Energy, Mines, and Petroleum Resources, electrification of BC’s existing oil and gas has cut GHGs by 1.6 MT/year.
• CEBC estimates that a fully electrified Montney would reduce GHGs by 5-6 MT/year. If the gas producers carry out deep-cut processing concurrently with shallow-cut processing using our clean electricity, GHGs would be reduced by another 8-9 MT/year, bringing the total reduction for Northeast BC electrification to 13-15