Natural gas in Canada

File:Canada Gas Proved Reserves 1980-2012.png

As of 2017, Canada's gas reserves were estimated {{convert|30.8|e12m3}}, 72% of which is from unconventional tight gas formations in Alberta and British Columbia.{{cite book |last1=National Energy Board |title=Canada's role in the global LNG market : energy market assessment. |date=July 2017 |publisher=National Energy Board |location=Canada |isbn=978-0-660-08993-5 |url=https://www.neb-one.gc.ca/nrg/sttstc/ntrlgs/rprt/2017lngmrkt/2017lngmrkt-eng.pdf}}

Biogenic gas is produced at shallow depths by microbial activity. The most prolific biogenic gas deposit in Western Canada is the Southeast Alberta Gas Field (SAGF), which is located in southeastern Alberta and southwestern Saskatchewan in the Western Canada Sedimentary Basin{{Citation| last1 = Chen | first1 = Z.| last2 = Shuai | first2 = Y. | last3 = Osadetz | first3 = T.| last4 = Hamblin | first4 = T.| last5 = Grasby| first5 = S.| year = 2015| title = Comparison of biogenic gas fields in the Western Canada Sedimentary Basin and Qaidam Basin: implications for essential geological controls on large microbial gas accumulations| journal = Bulletin of Canadian Petroleum Geology| volume = 63| issue = 1| pages = 33–52| doi = 10.2113/gscpgbull.63.1.33}} and holds an estimated 1.42 trillion m³ of recoverable gas.{{Citation| last1 = Chen | first1 = Z.| last2 = Zhang | first2 = S. | last3 = Grasby | first3 = S.E.| last4 = Shuai | first4 = Y.| year = 2015| title = Biogenic gas accumulations in Canada and China: geological characteristics and new insights| journal = Bulletin of Canadian Petroleum Geology| volume = 63| issue = 1| pages = 1–3| doi = 10.2113/gscpgbull.63.1.1}}

Gas hydrates are pure methane deposits formed at low temperature and high pressure conditions.{{Citation| last1 = Grace | first1 = J.| last2 = Collett | first2 = T. | last3 = Colwell | first3 = F.| last4 = Englezos | first4 = P.| last5 = Jones | first5 = E. | last6 = Mansell | first6 = R.| last7 = Meekison | first7 = J.P.| last8 = Ommer| first8 = R.| year = 2008| title = Energy from gas hydrates - assessing the opportunities and challenges for Canada| journal = Report of the Expert Panel on Gas Hydrates, Council of Canadian Academies}} They are typically found in the shallow sea in arctic permafrost regions and continental slopes. In Western Canada, the Mackenzie-Beaufort Sea and the continental slope off Vancouver Island are two areas which have undergone extensive exploration drilling and studies. The gas hydrate deposits in these regions are estimated to hold up to 11×10¹³ m³ of gas.{{Citation| last1 = Majorowicz | first1 = J.A| last2 = Osadetz | first2 = K.G.| year = 2001| title = Gas hydrate distribution and volume in Canada| journal = Bulletin of Canadian Petroleum Geology| volume = 85| issue = 7| pages = 1211–1230}}

The Southeast Alberta Gas Field (SAGF) is a significant biogenic gas accumulation located in southeastern Alberta and southwestern Saskatchewan within the Western Canada Sedimentary Basin. Discovered in 1884 and brought into production in 1904, SAGF has been a major contributor to Canada's natural gas output. It holds an estimated 1.42 trillion cubic meters (50 trillion cubic feet) of recoverable gas. https://www.hartenergy.com/exclusives/production-canadas-montney-duvernay-gains-momentum-207694

In comparison, the Montney and Duvernay formations are among Canada's most prolific unconventional resource plays:

Montney Formation: Spanning northeastern British Columbia and northwestern Alberta, the Montney is considered one of the largest natural gas resources globally. It has an estimated total resource of 900 trillion cubic feet equivalent (Tcfe) of gas in place. Production from the Montney has grown significantly, with natural gas volumes increasing from approximately 0.82 billion cubic feet per day (Bcf/d) in 2010 to 8.06 Bcf/d in 2022.

Duvernay Formation: Located in central Alberta, the Duvernay Formation holds an estimated 443 trillion cubic feet of gas and 61.7 billion barrels of oil. Production from the Duvernay has also seen substantial growth, contributing to Canada's overall natural gas output.

While the SAGF has been a cornerstone of Canada's natural gas production for over a century, the Montney and Duvernay formations represent the future of the country's natural gas industry, with their vast resources and increasing production rates positioning them as key players in both domestic and international energy markets.

https://www.reuters.com/business/energy/canadian-natural-gas-prices-fall-two-year-low-storage-fills-2024-09-23/

File:Canada Gas Production 1980-2012.png

As of 2017, Canada was the fifth largest producer of natural gas in the world with a total of {{convert|473|e6m3/d}}.{{cite web|title=Natural Gas|url=https://www.capp.ca/canadian-oil-and-natural-gas/natural-gas|website=Canadian Association of Petroleum Producers}} in 2017.{{Cite web|url=https://www.neb-one.gc.ca/nrg/sttstc/ntrlgs/stt/mrktblntrlgsprdctn-eng.html|title=Marketable Natural Gas Production in Canada|access-date=2018-03-15}}

There are four LNG plants that serve Canada's domestic demand. Two additional LNG facilities are in the planning stages, with Stolt LNGaz slated to open in 2018 in Becancour, Quebec and Northeast Midstream planning two liquefaction plants in Nipigon and Thorold, Ontario.{{Cite web|url=http://northeastmidstream.com/projects.php|title=Northeast Midstream|access-date=2018-03-15}}

Three LNG facilities are in operation in Western Canada as of 2018, and one more is slated to begin operations in 2018:

• Elmworth, Alberta LNG facility - Ferus Natural Gas Fuels Inc.
• Mt Hayes Ladysmith - FortisBC
• Tilbury LNG - FortisBC
• Energir (formerly Gaz Metro) natural gas liquefaction, storage and regasification plant{{Cite web|url=https://www.energir.com/|title=Énergir {{!}} Entreprise québécoise, leader en énergie|website=www.energir.com|language=fr|access-date=2018-04-08}}
• Union Gas's Hagar LNG plant, the first to open in Canada

Ferus Natural Gas Fuels Inc. (Ferus NGF) began operation of their merchant LNG facility in Elmworth, Alberta in May 2014. This facility can currently produce 50,000 gallons of LNG per day with an expansion capacity of 250,000 gallons per day.{{cite web|title=Ferus Natural Gas Fuels makes Canadian energy history by commissioning the first merchant LNG facility in Canada|url=http://www.ferus.com/ferus-natural-gas-fuels-makes-canadian-energy-history-by-commissioning-the-first-merchant-lng-facility-in-canada/|website=Ferus Inc.|accessdate=April 1, 2018}} The facility receives lean gas from a nearby industry host plant.{{cite news|last1=Turner|first1=Jocelyn|title=Ferus LNG plant in Elmworth a first for Canada|url=http://www.dailyheraldtribune.com/2014/10/28/ferus-lng-plant-in-elmworth-a-first-for-canada|accessdate=16 April 2018|agency=Daily Herald Tribune|date=Oct 28, 2014}}

FortisBC's Mt Hayes facility is located near Ladysmith, Vancouver Island. The facility was completed in 2011 and is owned in a limited partnership between FortisBC, Stz'uminus First Nation, and the Cowichan Tribes.{{cite web|title=FortisBC partners with Stz'uminus (Chemainus) First Nation and Cowichan Tribes in the ownership of Mt. Hayes natural gas storage facility|url=https://www.fortisbc.com/MediaCentre/NewsReleases/2012/Pages/FortisBC-partners-with-Stz%E2%80%99uminus-(Chemainus)-First-Nation-and-Cowichan-Tribes-in-the-ownership-of-Mt--Hayes-natural-gas-st.aspx|website=FortisBC|accessdate=16 April 2018}} The facility includes a liquefaction system, vaporization system, and storage tank and is connected to the main transmission line via two pipeline spurs.{{cite web|last1=Stobart|first1=Matthew|title=ENGINEERING, PROCUREMENT, AND CONSTRUCTION CHALLENGES OF THE MOUNT HAYES LNG PEAKSHAVING FACILITY|url=http://www.gastechnology.org/Training/Documents/LNG17-proceedings/10-1-Matthew_Stobart.pdf|website=Gas Technology Institute|accessdate=16 April 2018}} The primary use of the facility is for peak shaving storage, to ensure a steady supply of gas and maintain lower costs during peak demand periods for local customers.{{cite web|title=Mt Hayes LNG Facility|url=https://talkingenergy.ca/node/78|website=FortisBC|accessdate=16 April 2018}}

The FortisBC Tilbury Island LNG facility is located in Delta, British Columbia and began operations in 1971. It has the capacity to liquefy 5,000 GJ of gas per day and stores up to 600,000 GJ. Expansion is underway to increase the liquefaction and storage capacities by 34,000 GJ and 1.1 million GJ, respectively.{{cite web|title=Tilbury LNG expansion project|url=https://talkingenergy.ca/project/tilbury-LNG-expansion-project|website=FORTISBC|accessdate=16 April 2018}}

Across Canada, interprovincial pipelines have the capacity to carry over {{convert|1.3|e9m3/d}} of gas and even more within the boundaries of the individual provinces.{{cite web|last1=National Energy Board|title=Canada's Pipeline Transportation System|url=https://www.neb-one.gc.ca/nrg/ntgrtd/trnsprttn/2016/cnds-ppln-trnsprttn-systm-eng.html.|website=NEB|accessdate=1 April 2018|date=2016}} The construction of new natural gas pipelines is controversial. RCMP enforcement actions against Wet'suwet'en hereditary chiefs in 2020 and 2021 at the Coastal Gas Link pipeline led to wide spread protests across the country.

File:Brandon GS Combustion Turbines.JPG was converted from burning coal to burning natural gas in 2018.]]

{{further|List of natural gas-fired power stations in Canada}}

In 2016 natural gas was used to provide 35% of all energy in Canada, double the amount supplied by electricity.{{cite web |title=NEB – Provincial and Territorial Energy Profiles – Canada |url=https://www.neb-one.gc.ca/nrg/ntgrtd/mrkt/nrgsstmprfls/cda-eng.html |website=www.neb-one.gc.ca |publisher=National Energy Board - Government of Canada |date=7 December 2017}} Electricity generated by natural gas was 8.5% of the nation's total. Natural gas is used to supply 50% of space heating, and 65% of water heating in homes, similarly 80% of businesses use natural gas for space and water heating.{{cite web|url=http://www.nrcan.gc.ca/energy/sources/natural-gas/17894|title=NORTH AMERICAN NATURAL GAS MARKET: 2015-2016 HEATING SEASON OUTLOOK|website=Nrcan.gc.ca|date=19 November 2015 |accessdate=4 July 2018}} The industrial sector uses natural gas as a source of process heat, as a fuel for the generation of steam and as a feedstock in the production of petrochemicals and fertilizers.{{cite web|url=http://www.nrcan.gc.ca/energy/natural-gas/5641#who|title=Natural Gas: A Primer|website=Nrcan.gc.ca|date=18 January 2011 |accessdate=4 July 2018}} Provincially, Alberta is the largest consumer of natural gas at 3.9 billion cubic feet per day.

In 2018, the government of Canada announced the goal of phasing out the use of coal-fired power stations in favour of less polluting alternatives for electricity generation by 2030.{{Cite web|url=https://www.cbc.ca/news/business/canada-g20-coal-energy-1.5143694|title=Canada a leader among G20 for plan to phase out coal, says report|last=Naidu-Ghelani|first=Rajeshni|date=21 May 2019|website=cbc.ca|access-date=27 January 2020}} In response, companies such as TransAlta and Capital Power began planning the conversion of their coal-fired power stations to burning natural gas.{{Cite web|url=https://www.transalta.com/about-us/coal-to-gas/|title=Coal-to-Gas Conversions Project|last=|first=|date=2019|website=TransAlta|access-date=24 January 2020}}{{Cite web|url=https://www.capitalpower.com/sustainability/innovation/dual-fuel/|title=Dual-Fuel Flexibility|website=Capital Power|language=en-CA|access-date=2020-01-24}} This transition is expected to increase overall domestic consumption of natural gas.

{{main|Liquefied natural gas in Canada}}

In Canada there are approximately 188,525 people residing in 265 remote communities with a combined total annual electrical usage of 1,850 GW.{{Citation| title = Natural Resources Canada, Remote Communities Database| date=12 September 2016| url=http://atlas.gc.ca/rced-bdece/en/index.html|access-date=2018-03-15}}{{Citation| last1 = Arriaga | first1 = M.| last2 = Cañizares | first2 = C.A. | last3 = Kazerani | first3 = M. | year = 2014| title = Northern lights: Access to electricity in Canada's northern and remote communities| journal = IEEE Power and Energy Magazine| volume = 12| issue = 4| pages = 50–59| doi = 10.1109/MPE.2014.2317963| s2cid = 44236179}}{{cite journal|last1=Knowles|first1=J.|title=Power shift: Electricity for Canada's remote communities|journal=Conference Board of Canada|date=2016|pages=68|url=http://www.conferenceboard.ca/e-library/abstract.aspx?did=8249|access-date=2018-03-15}} The majority of these communities rely on diesel with a total annual fuel consumption of approximately 289 million L. Today, two of Canada's remote communities use natural gas as their primary fuel source.

• Norman Wells, NT purchases excess electricity from a natural gas-fueled power plant operated by Imperial Oil that taps into its field for gas.{{cite journal|last1=Standing Senate Committee on Energy, the Environment and Natural Resources|title=Powering Canada's Territories|pages=64|url=http://senate-senat.ca/enev.asp}}
• Inuvik, NT has one natural-gas run power plant which until recently was sourced locally from the Ikhil gas well in the Mackenzie Delta. The transition to LNG occurred in 2014 as production ceased in the well. The LNG was initially transported over 3,500 km from the Delta Tillbury plant. Today, Ferus’ Elmworth facility supplies LNG to Inuvik, as well as the city of Whitehorse, which uses natural gas generators.

Industrial consumers use LNG to smooth or peak shave the sudden lower/higher demand periods that arise due to extremely cold or warm weather.{{cite book |last1=National Energy Board |title=Canada's role in the global LNG market : energy market assessment. |date=July 2017 |publisher=National Energy Board |location=Canada |isbn=978-0-660-08993-5 |url=https://www.neb-one.gc.ca/nrg/sttstc/ntrlgs/rprt/2017lngmrkt/2017lngmrkt-eng.pdf}} The Tilbury LNG FortisBC facility currently operates as a peak shaving facility in Western Canada.{{cite book |last1=National Energy Board |title=Canada's role in the global LNG market : energy market assessment. |date=July 2017 |publisher=National Energy Board |location=Canada |isbn=978-0-660-08993-5 |url=https://www.neb-one.gc.ca/nrg/sttstc/ntrlgs/rprt/2017lngmrkt/2017lngmrkt-eng.pdf}} LNG is also used in heavy drilling, mining machinery operation, and fueling gas-fired electrical generating stations in remote mining locations.{{cite book |last1=National Energy Board |title=Canada's role in the global LNG market : energy market assessment. |date=July 2017 |publisher=National Energy Board |location=Canada |isbn=978-0-660-08993-5 |url=https://www.neb-one.gc.ca/nrg/sttstc/ntrlgs/rprt/2017lngmrkt/2017lngmrkt-eng.pdf}}

• Caterpillar Inc.: An agreement was announced in 2013 between Caterpillar and Shell Canada to test new LNG hybrid mining trucks in their oil sands mining operations{{cite web|title=SHELL CANADA & CATERPILLAR SIGN AGREEMENT EXPLORING LNG FUELLING OPTIONS FOR MINING TRUCKS|url=https://www.shell.ca/en_ca/media/news-and-media-releases/news-releases-2013/caterpillar-lng-fueling-agreement.html|website=Shell Canada|accessdate=16 April 2018}} In 2017, Caterpillar Inc. released a dual fuel (LNG-diesel) retrofit kit for their 785C mining truck.{{cite web|title=CATERPILLAR TO OFFER DUAL FUEL RETROFIT KIT FOR 785C MINING TRUCK|url=https://www.cat.com/en_US/news/machine-press-releases/caterpillar-to-offer-dual-fuel-retrofit-kit-for-785c-mining-truck.html|website=Caterpillar|accessdate=16 April 2018}}
• Teck Resources began a pilot LNG project at their Fording River operation in 2015. Two hauling trucks were converted to dual diesel/LNG engines and LNG was provided by FortisBC.{{cite web|title=Behind the Pilot: LNG Truck Conversion at Fording River Operations|url=https://www.teck.com/news/stories/2016/behind-the-pilot--lng-truck-conversion-at-fording-river-operations|website=Teck|accessdate=16 April 2018}}
• Stornoway Diamond Corporation has developed an LNG fueled power plant for the Renard diamond mine in Quebec.Matt Manson. Stornoway To Proceed With Liquefied Natural Gas (LNG) Power Plant For Renard Diamond Project; 2013.

Some Canadian organizations have begun to transition away from diesel and gasoline and towards LNG fuel.

• BC Ferries signed an agreement with FortisBC in 2015 to supply 300,000 GJ of LNG annually to fuel three new passenger ferries equipped with dual fuel capacity (natural gas and diesel). The LNG is transported from the Tilbury facility by truck.{{cite web|url=https://www.fortisbc.com/MediaCentre/NewsReleases/2015/Pages/FortisBC-finalizes-LNG-supply-agreement-with-BC-Ferries-to-fuel-new-vessels.aspx?hootPostID=a17af6110992ce9883a9a8119b50e867|title=FortisBC finalizes LNG supply agreement with BC Ferries to fuel new vessels|access-date=2018-04-05}}
• Seaspan Ferries Corp purchased two hybrid (diesel-LNG-battery) ferries in 2017 to add to its fleet of vessels which deliver cargo from mainland Vancouver to Vancouver Island.{{cite web|last1=Press Release|title=Seaspan Ferries Corporation Announces Arrival of Second New Liquefied Natural Gas (LNG) Fuelled Vessel|url=http://www.seaspan.com/seaspan-ferries-corporation-announces-arrival-second-new-liquefied-natural-gas-lng-fuelled-vessel|website=Seaspan|accessdate=16 April 2018}} LNG for Seaspan Ferries is also supplied by FortisBC's Tilbury facility.{{cite web|title=Marine Bunkering|url=https://www.fortisbc.com/NaturalGas/Business/NaturalGasVehicles/Pages/Marine-bunkering.aspx|website=FortisBC|accessdate=16 April 2018}}
• Vedder Transport of Abbotsford, BC owns a fleet of 65 LNG transport tractors, some of which were purchased from a failed LNG pilot project by Bison Transport.{{cite news|last1=Menzies|first1=James|title=Why Vedder Transport jumped at opportunity to buy Bison's LNG trucks|url=https://www.trucknews.com/sustainability/why-vedder-transport-jumped-at-opportunity-to-buy-bisons-lng-trucks/1003067038/|accessdate=16 April 2018|agency=Truck News|date=August 4, 2015}}{{cite web|title=1 year & 1,000,000 LNG miles later..|url=https://img.bisontransport.com/public/resources/pdf/documents/bisontransportcom_news/356-1_year_and_1000000_lng_miles_later....pdf|website=Bison Transport|accessdate=16 April 2018}}{{cite news|last1=Bakx|first1=Kyle|title=LNG replacing diesel? Not for a long, long while|url=http://www.cbc.ca/news/business/lng-diesel-bison-shell-cnrail-2016-1.3414257|accessdate=16 April 2018|agency=CBC News|date=Jan 25, 2016}} Vedder refuels their fleet using a private station which is supplied with LNG by FortisBC.{{cite web|title=Western Canada's first large-scale liquefied natural gas fuelling station will help reduce B.C.'s greenhouse gases by over 3,500 tonnes a year|url=https://www.fortisbc.com/MediaCentre/NewsReleases/2011/Pages/Western-Canada%E2%80%99s-first-large-scale-LNG-fuelling-station-will-help-reduce-BCs-greenhouse-gases.aspx|publisher=FortisBC|accessdate=16 April 2018}}
• Denwill Enterprises (Burnaby, BC), Sutco Transportation Services (Salmo, BC) and Arrow Transportation Systems (Kamloops, BC), own LNG transportation vehicles in their fleet and are supplied by FortisBC's Tilbury LNG facility {{cite web|title=Tilbury LNG Facility|url=https://www.fortisbc.com/About/AboutNaturalGas/SupplyStorage/Pages/Tilbury-LNG-Facility.aspx|website=FortisBC|accessdate=16 April 2018}}{{cite web|title=Liquid natural gas powers Sutco|url=https://www.woodbusiness.ca/harvesting/fuelled-up|website=Wood Business|accessdate=16 April 2018|date=May 16, 2014}}
• ENN Canada (a subsidiary of ENN Group) owns three LNG fueling stations in Chilliwack, BC; Merrit, BC and Grande Prairie, AB which service trucking fleets.{{cite web|url=http://www.enncanada.com/lng-applications/trucking|title = Trucking solutions|access-date=2018-04-05}}{{cite news|last1=Gao|first1=Aaron|title=ENN Canada Marks Important Milestone with New Chilliwack LNG Station|url=https://www.businesswire.com/news/home/20140403005202/en/ENN-Canada-Marks-Important-Milestone-New-Chilliwack|accessdate=16 April 2018|agency=Business Wire|publisher=Birkshire Hathaway|date=April 3, 2014}}
• the Canadian National Railway took part in North America's first pilot study using two hybrid (LNG-diesel)powered locomotives from 2012-2013 and in 2015, which transported freight from Edmonton to Fort McMurray.{{cite journal|last1=Railway Association of Canada|title=How railways can be part of Canada's climate change solution|date=May 31, 2016|url=https://sencanada.ca/content/sen/committee/421/ENEV/Briefs/2016-10-25RailwayAssociationofCanada_Brief_e.pdf|accessdate=16 April 2018}} As of 2018, the project has not yet been adopted.

A large portion of Canada's gas is exported to the United States; in 2006, {{convert|9.9|Gcuft|m3}} per day.{{cite web|url=http://www.capp.ca/default.asp?V_DOC_ID=690|title=Canadian Association of Petroleum Producers|website=Capp.ca|accessdate=4 July 2018|archive-url=https://web.archive.org/web/20070723072859/http://www.capp.ca/default.asp?V_DOC_ID=690|archive-date=23 July 2007|url-status=dead}} In 2018, Canada's annual net exports of natural gas totaled 57.5 billion cubic meters.{{Cite web|url=https://www.cer-rec.gc.ca/nrg/sttstc/ntrlgs/rprt/ntrlgssmmr/ntrlgssmmr-eng.html|title=Natural Gas Annual Trade Summary - 2018|last=|first=|date=2019-03-15|website=Canada Energy Regulator|publisher=Government of Canada|accessdate=2019-09-23}}

{{See also|LNG Canada}}

As of 2018, the Canaport LNG facility in New Brunswick, which opened in 2009, is Canada's only large-scale LNG terminal. The plant functions as a regasification facility. The plant receives LNG from the North Sea and the Caribbean and redistributes it to Atlantic Canada and Northeastern US.{{cite book |last1=National Energy Board |title=Canada's role in the global LNG market : energy market assessment. |date=July 2017 |publisher=National Energy Board |location=Canada |isbn=978-0-660-08993-5 |url=https://www.neb-one.gc.ca/nrg/sttstc/ntrlgs/rprt/2017lngmrkt/2017lngmrkt-eng.pdf}} According to the International Gas Union's 2017 World LNG Report, Canada received 0.06 and 0.18 metric tonnes per annum (MTPA) from Norway and Trinidad, respectively, in 2016.{{cite book|last1=International Gas Union|title=2017 World LNG Report|date=2017|url=https://www.igu.org/sites/default/files/103419-World_IGU_Report_no%20crops.pdf|accessdate=16 April 2018}}

Since 2010, the National Energy Board (NEB) has received 48 applications for LNG import/export facilities in Canada. Of those applications, 24 LNG export projects were approved to service the Asian market demand.{{cite book |last1=National Energy Board |title=Canada's role in the global LNG market : energy market assessment. |date=July 2017 |publisher=National Energy Board |location=Canada |isbn=978-0-660-08993-5 |url=https://www.neb-one.gc.ca/nrg/sttstc/ntrlgs/rprt/2017lngmrkt/2017lngmrkt-eng.pdf}} Canada's first LNG export to China occurred on November 22, 2017 by True North Energy, which transported 17 tonnes of LNG from Fortis BC's Tilbury plant in Vancouver.{{cite web|url=http://www.tnec.ca/index.html|title=True North Energy|accessdate=April 15, 2018}}{{cite news|title=Canada's first LNG export to China on its way by container|url=https://www.reuters.com/article/canada-lng-china/canadas-first-lng-export-to-china-on-its-way-by-container-idUSL1N1NS2A0|accessdate=15 April 2018|work=Reuters|date=Nov 22, 2017}} Because most of Canada's LNG export proposals are greenfield projects, the upfront capital costs are high compared to other international projects. However, small-scale LNG facilities are finding opportunities in Canada's domestic markets.

The public agency governing the energy and electrical distribution in Alberta is the Alberta Utilities Commission (AUC). The AUC is an independent and quasi-judicial agency that regulates transmission lines, electric substations, power generation facilities (i.e. power plants including wind turbines), and gas utility pipelines. According to the AUC Act (SA 2007),{{cite web|last1=Alberta Utilities Commission|title=Rule 007 Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments|url=http://www.auc.ab.ca/regulatory_documents/Consultations/2017-07-04-Rule007.pdf|website=Alberta Utilities Commission|accessdate=1 April 2018|pages=60|date=2017}} the Commission is made up of nine members appointed by the Lieutenant Governor in Council and each hold terms of up to 5 years. In Section 8(5), the Act outlines that the commission may make an order on appeals relating to disputes and are responsible for holding hearings and determining if utility projects are in the public interest.Alberta Utilities Commission. Alberta Utilities Commission Act: c A-37.2; 2007. Ultimately, the approval for any LNG plant or project needs approval from the AUC.

Another important statute in Alberta is the Hydro and Electric Energy Act (RSA 2000).Province of Alberta. Hydro and Electric Energy Act: RSA 2000; 2017. Under Section 11 of the Act, the AUC must approve the construction and operation of any LNG plant before production can begin. Section 19 explains that the AUC is responsible for granting or denying approvals, permits, and licenses. Additionally, the commission may demand modifications to the plans, specifications, or locations for LNG plants, before allowing a project to proceed. If the applicant wants to make minor alterations to a power plant, then the corporation must submit a Letter of Enquiry containing the need for the project, timing of construction, and environmental impacts. These provisions are specified in the Hydro and Electric Energy Regulation (409/83) under Section 12.

The Isolated Generating Units and Customer Choice Regulation (165/2003)Isolated Generating Units and Customer Choice Regulation: Alberta Regulation 165/2003; 2018. enables Alberta to govern the provision of energy to areas separate from the interconnected electric system, as well as isolated communities. In Section 2, the regulations clearly state that the owner of the electric distribution system where an isolated community is located must get approval for the pricing and costs associated with providing energy to those communities.Province of Alberta. Isolated Generating Units and Customer Choice Regulation: Alberta Regulation 165/2003; 2018. In order to develop an LNG fueled power plant in remote communities, utility companies need to follow a robust approval process established by the AUC. During this procedure, the utility companies are required to follow an intensive nine step process involving public consultations, hearings, appeals, and a final decision from the AUC. As part of the process, community support is required before proceeding with energy projects. In the nine step approval process,ATCO Electric. SHAPE the conversation: Fort Chipewyan Third Lake Generation Unit Maintenance. the first step is public consultation, which involves the applicant addressing concerns from various stakeholders. Next, the utility company is required to make an official application to the AUC. Then, the AUC issues a notice of hearing to any members of the public who wishes to participate in the approval process. The fourth step involves interested parties making submissions or objections to the application. The next step is an opportunity for consultation and negotiation. Shortly after, the AUC holds public hearings and makes the decision to either deny the project, approve it, or put conditions on the approval. The final two steps involve an appeal process for dissatisfied participants and the ultimate construction and operation of the LNG facility.

• List of power stations in Canada by type
• List of countries by natural gas production
• Arctic methane emissions
• History of the petroleum industry in Canada
• Shale gas in Canada

{{Reflist}}

• [http://www.nrcan.gc.ca/energy/natural-gas/5639 Natural Resources Canada, Natural Gas Division]