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Abundance - Canada and China - Energy
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| <?xml version="1.0" encoding="UTF-8"?> | |
| <!--Xholon Workbook http://www.primordion.com/Xholon/gwt/ MIT License, Copyright (C) Ken Webb, Sun Dec 21 2025 09:08:59 GMT-0500 (Eastern Standard Time)--> | |
| <XholonWorkbook> | |
| <Notes><![CDATA[ | |
| Xholon | |
| ------ | |
| Title: Abundance - Canada and China - Energy | |
| Description: | |
| Url: http://www.primordion.com/Xholon/gwt/ | |
| InternalName: aa31fa1bb918443bd15d0f48f93ca36f | |
| Keywords: | |
| My Notes | |
| -------- | |
| 2025 Dec 20 | |
| Another workbook in the Abundance series. | |
| It revolves around the idea of Canada to supply Natural Gas as Liquified Natural Gas (LNG) to China, with goals (fro9m the perspective of this workbook): | |
| - help China reduce amount of coal it uses, | |
| - help Canadaian economy, | |
| - be popular in Alberta, | |
| - make sense re climate change | |
| The final goal is for both countries to be completely off fossil fuels as quickly as possible. | |
| What about Chinese-made electric vehicles? | |
| What is the current status of the pipeline from Alberta to an ocean terminal in BC? | |
| A key issue for people, is being able to trust all parties to follow through as fast, efficiently as possble to phase out all fossil fules. | |
| ### TODO | |
| - define the details of this model | |
| - work out how it makes sense re climate change | |
| - work through a scenario with a time frame that shows net reduction in CO2 | |
| - | |
| ### References | |
| () https://www2.gov.bc.ca/gov/content/industry/natural-gas-oil/lng/lng-projects | |
| Liquefied Natural Gas Projects | |
| Kitimat LNG is a partnership between Chevron Canada Ltd. and Woodside Energy International (Canada) Ltd. to build an export facility in Bish Cove, near Kitimat, British Columbia. | |
| - this is an out-of-date page ??? | |
| () https://www.cbc.ca/news/canada/british-columbia/lng-canada-first-ship-1.7501046 | |
| First LNG carrier arrives in Kitimat, B.C., as $40B liquefied natural gas plant prepares to start | |
| LNG Canada is 'largest single private sector investment' in Canadian history, government says | |
| The LNG Canada plant will receive natural gas, transported via the 670-kilometre Coastal Gaslink pipeline, with origins near Dawson Creek, cool it, and ship it to Asian markets. | |
| () https://www.coastalgaslink.com/ | |
| Mechanically completed in November 2023, Coastal GasLink is focused on final clean-up and reclamation activities into operations. Coastal GasLink will play a critical role in delivering natural gas to world markets , providing a lower-emitting energy option to offset coal-fired energy generation in global markets. | |
| Coastal GasLink will not be producing the natural gas – our role is to ensure the safe transportation of natural gas once it is produced. | |
| () | |
| ]]></Notes> | |
| <markdown>< | |
| * **LNG Canada Website:** | |
| [https://www.lngcanada.com/](https://www.lngcanada.com/) | |
| * **CBC News Coverage:** Search "Coastal GasLink" on the CBC website | |
| for extensive coverage and updates. | |
| * **The Narwhal:** A Canadian investigative journalism outlet that has | |
| covered the pipeline extensively: | |
| [https://www.thenarwhal.com/](https://www.thenarwhal.com/) | |
| >>> Why does the pipeline move natural gas rather than LNG? | |
| You're asking a very astute question that highlights the difference | |
| between the pipeline's function and the overall project goal! Here's the | |
| breakdown of why the pipeline moves natural gas and not LNG: | |
| **The Pipeline's Job: Transportation** | |
| * **Natural Gas is the Raw Material:** The Coastal GasLink pipeline’s | |
| *primary* role is to transport **natural gas in its gaseous form**. It's | |
| a transportation infrastructure project. Think of it like a highway for | |
| natural gas. It gets the gas from the production fields to the LNG | |
| facility. | |
| * **Pipeline Limitations:** Natural gas is a gas at normal | |
| temperatures and pressures. LNG (Liquefied Natural Gas) is natural gas | |
| that has been cooled to -162°C (-260°F). This process turns the gas into | |
| a liquid, which is much denser and easier to transport in large volumes. | |
| Pipelines are not designed to handle LNG; they'd need specialized, | |
| extremely cold-resistant infrastructure, which would be incredibly | |
| expensive and complex. | |
| **LNG Canada's Role: Liquefaction & Export** | |
| * **Liquefaction Process:** At the LNG Canada facility in Kitimat, the | |
| natural gas arriving via the Coastal GasLink pipeline undergoes a | |
| process called **liquefaction**. This involves cooling the gas to | |
| extremely low temperatures, transforming it into LNG. | |
| * **Shipping LNG:** It's the LNG – the liquid form – that is then | |
| loaded onto specialized ships and exported to international markets. | |
| **Think of it this way:** | |
| * **Coastal GasLink Pipeline:** Moves *natural gas* (the raw | |
| ingredient). | |
| * **LNG Canada Facility:** Takes the natural gas, liquefies it, and | |
| prepares it for export as LNG. | |
| The pipeline is a crucial link in the chain, but it's only one part of the larger LNG export process. | |
| >>> Is natural gas the same as methane? | |
| That's a great question, and it gets to a bit of a nuance in | |
| terminology. Here's the breakdown of the relationship between natural gas and methane: | |
| **Methane (CH₄) is the *primary* component of natural gas.** | |
| Let's break it down further: | |
| * **Methane:** This is a chemical compound – a molecule made up of one | |
| carbon atom and four hydrogen atoms. It's a gas at room temperature and | |
| pressure. | |
| * **Natural Gas:** This is a *mixture* of gases that is found | |
| underground. The vast majority (typically 70-90%) of natural gas is | |
| methane (CH₄). However, it also contains smaller amounts of other gases, | |
| including: | |
| * **Ethane (C₂H₆)** | |
| * **Propane (C₃H₈)** | |
| * **Butane (C₄H₁₀)** | |
| * **Carbon Dioxide (CO₂) - a small amount** | |
| * **Nitrogen (N₂) - often present as a contaminant** | |
| * **Trace amounts of other hydrocarbons** | |
| **So, while natural gas is *primarily* methane, it's not *just* | |
| methane.** It's a mixture, with methane being the most abundant and | |
| commercially valuable component. | |
| **Think of it this way:** | |
| * **Methane is like the main ingredient.** | |
| * **Natural gas is the finished dish (that contains the main | |
| ingredient, but also a few others).** | |
| >>> In the pipeline project, how much natural gas leaks into the air at each step of the process? | |
| Okay, quantifying natural gas leaks across the entire process – from | |
| wellhead to export – is complex and a topic of ongoing scrutiny and | |
| reporting. There's no single, definitive number, as leak rates vary | |
| depending on technology, maintenance practices, and regulatory | |
| oversight. However, I can give you a breakdown of where leaks occur and | |
| estimates of the leakage rates at each step, based on available data and | |
| industry reports. | |
| **1. Upstream (Production & Gathering - Dawson Creek Region):** | |
| * **Source:** This is where most of the leakage occurs. It involves | |
| wells, processing plants, gathering pipelines, and compressor stations. | |
| * **Leak Sources:** | |
| * **Well Sites:** Venting and flaring (intentional release of | |
| gas), leaks from equipment. | |
| * **Processing Plants:** Equipment leaks, incomplete combustion | |
| during processing. | |
| * **Gathering Pipelines:** Leaks from pipelines, compressor | |
| stations, and meter stations. | |
| * **Estimated Leakage Rate:** Estimates vary widely. Older figures | |
| suggested a potential rate of around 2-3% of total gas produced. More | |
| recent estimates, influenced by stricter regulations and improved | |
| technology, place it closer to 1-1.5% but can spike during maintenance | |
| or incidents. The BC Oil and Gas Commission (now the BC Energy | |
| Regulator) has been working to lower these rates. | |
| * **Specific to CGL:** Direct data specific to the Coastal GasLink | |
| pipeline's upstream section is difficult to obtain, but it’s likely | |
| influenced by the average rates for the region. | |
| **2. Coastal GasLink Pipeline Transportation:** | |
| * **Sources:** Leaks from pipeline sections, compressor stations | |
| (required to maintain pressure), and meter stations. | |
| * **Leakage Rate:** CGL has committed to a leak detection and repair | |
| program. The pipeline's design incorporates advanced leak detection | |
| technology. CGL's publicly stated commitment is to operate the pipeline | |
| with a methane intensity below 0.2%. The industry average is around | |
| 0.3%. It's important to note that "intensity" is typically expressed as | |
| a ratio of methane emissions per unit of gas transported, rather than a | |
| percentage of the total gas volume. | |
| * **Challenges in Monitoring**: Given the remote nature of some sections | |
| of the pipeline, accurately quantifying leaks can be challenging. | |
| **3. LNG Canada Facility (Kitimat):** | |
| * **Sources:** Leaks from liquefaction equipment, storage tanks, and | |
| loading facilities. Venting and flaring during maintenance and | |
| emergencies. | |
| * **Leakage Rate:** LNG facilities are subject to strict environmental | |
| regulations, but leaks are still a concern. Similar to the pipeline, LNG | |
| Canada has committed to best practices and aims to minimize methane | |
| emissions. However, the liquefaction process itself is inherently | |
| energy-intensive and can generate methane emissions. | |
| * **Recent Developments:** Shell, one of the major partners in LNG | |
| Canada, has publicly committed to reducing methane emissions across its | |
| operations, including at the Kitimat facility. | |
| **Overall Estimates & Challenges:** | |
| * **Total Methane Emissions:** It’s challenging to provide a single, | |
| comprehensive figure for the entire process. Estimates suggest that the | |
| entire LNG Canada project, from production to export, could potentially | |
| release several tens of thousands of tonnes of methane annually. The | |
| exact amount depends on the factors mentioned above. | |
| * **Underreporting Concerns:** There's ongoing debate about whether | |
| methane emissions are consistently and accurately reported by the oil | |
| and gas industry. Some studies suggest that reported emissions may be | |
| significantly lower than actual emissions. | |
| * **Importance of Measurement Techniques:** Accurate measurement of | |
| methane emissions is crucial for understanding and mitigating the | |
| problem. Scientists are using various techniques, including satellite | |
| monitoring, aerial surveys, and ground-based sensors, to improve | |
| measurement accuracy. | |
| **Resources for More Information:** | |
| * **BC Energy Regulator (BCER):** | |
| [https://www.bc-er.ca/](https://www.bc-er.ca/) - Provides data and | |
| regulations related to oil and gas operations in British Columbia. | |
| * **Environmental Defense Fund (EDF):** | |
| [https://www.edf.org/](https://www.edf.org/) - A non-profit organization | |
| that advocates for reducing methane emissions. | |
| * **International Energy Agency (IEA):** | |
| [https://www.iea.org/](https://www.iea.org/) - Provides data and | |
| analysis on energy trends, including methane emissions. | |
| * **GHG Protocol:** | |
| [https://ghgprotocol.org/](https://ghgprotocol.org/) - Provides | |
| standards for greenhouse gas accounting and reporting. | |
| **Disclaimer:** Estimating leakage rates is inherently complex, and the | |
| numbers provided above are approximate. Ongoing monitoring, | |
| technological advancements, and stricter regulations are continuously | |
| impacting these rates. | |
| >>> How much of the natural gas in the Dawson Creek area produced using fracking? | |
| Okay, let's break down how much of the natural gas produced in the | |
| Dawson Creek area relies on hydraulic fracturing (fracking). It's a very | |
| high percentage – essentially, the vast majority. | |
| Here's a detailed explanation: | |
| **The Montney Formation – The Key Player** | |
| * **Dawson Creek's Production Hub:** The Dawson Creek region is at the | |
| heart of the Montney Formation, one of Canada’s largest and most | |
| prolific natural gas resource areas. | |
| * **What is the Montney?** The Montney is a shale formation – a layer | |
| of sedimentary rock with very low permeability (meaning gas can't flow | |
| through it easily). It contains huge reserves of natural gas, along with | |
| some oil and condensate. | |
| * **Conventional vs. Unconventional:** Historically, some natural gas | |
| in the region was produced using conventional methods (where gas flows | |
| relatively easily through the rock). However, the vast majority of the | |
| gas potential in the Montney is considered *unconventional*, meaning | |
| it's trapped within shale rock and requires specialized extraction | |
| techniques. | |
| **The Role of Fracking** | |
| * **Essential for Production:** To unlock the gas trapped in the shale | |
| rock of the Montney Formation, hydraulic fracturing (fracking) is | |
| *essential*. Without fracking, virtually none of the gas in the play | |
| would be economically recoverable. | |
| * **How Fracking Works (briefly):** Fracking involves injecting a | |
| mixture of water, sand, and chemicals under high pressure into the shale | |
| rock, creating fractures (cracks) in the rock that allow the gas to flow | |
| more freely to a wellbore. | |
| * **Dominance of Fracking:** Estimates suggest that **over 95% of the | |
| natural gas produced in the Dawson Creek/Montney area is extracted using | |
| fracking techniques.** Some sources even state it’s closer to 98-99%. | |
| **Supporting Data Points** | |
| * **BC Oil and Gas Commission/BC Energy Regulator Reports:** These | |
| reports consistently highlight the reliance on unconventional gas | |
| production in the Montney region. Their data show the overwhelming | |
| majority of new wells and production comes from shale gas formations. | |
| * **Industry Reports:** Reports from industry organizations like the | |
| Canadian Association of Petroleum Producers (CAPP) also confirm the | |
| dominant role of fracking in the region's natural gas production. | |
| * **Well Type Distribution:** Analysis of the types of wells being | |
| drilled in the Dawson Creek area consistently shows a very high | |
| proportion of shale gas wells, which require fracking. | |
| **Key Takeaway:** The Dawson Creek area’s natural gas production is almost entirely dependent on hydraulic | |
| fracturing to access the | |
| resources locked within the Montney Formation. | |
| >>> Assume that all of this LNG is shipped to China. Compare two scenarios in | |
| ... terms of greenhouse gas (carbon dioxide and methane) emissions. Scenario 1 | |
| ... : natural gas and LNG from Dawson Creek, to Kitimat, to China. Scenario 2: | |
| ... mine coal in China. In both scenarios, the fuel is burned to produce heat | |
| ... . | |
| Okay, let's analyze the two scenarios – Dawson Creek LNG to China versus | |
| Chinese coal mining for heat production – comparing their greenhouse gas | |
| (GHG) emissions. This is a complex comparison with a lot of variables, | |
| so I'll break it down into components and then provide a relative | |
| comparison. | |
| **Scenario 1: Dawson Creek LNG to China** | |
| * **A. Upstream Emissions (Dawson Creek to Kitimat):** | |
| * **Natural Gas Production & Processing:** Significant methane | |
| emissions (leakage) during extraction, processing, and transportation. | |
| (Estimate: 1-3% of gas produced, as discussed earlier). | |
| * **Coastal GasLink Pipeline:** Methane leakage from pipeline | |
| operations, compressor stations. (CGL aiming for <0.2% methane | |
| intensity, but still some leakage) | |
| * **LNG Canada Facility:** Methane leakage during liquefaction. | |
| * **B. Transportation Emissions:** | |
| * **Ship Transportation:** Burning of marine fuels (typically | |
| heavy fuel oil or LNG itself) for the ship voyage to China. This | |
| produces CO2. | |
| * **C. Combustion Emissions (in China):** | |
| * **Regasification:** Converting LNG back into natural gas for | |
| distribution. This process releases heat and a small amount of CO2. | |
| * **Combustion for Heat:** Burning the natural gas to generate | |
| heat. This is the primary source of CO2 emissions in this scenario. | |
| * **Potential for Combustion Inefficiency:** If the burners are | |
| old or poorly maintained, combustion can be incomplete, releasing more | |
| methane. | |
| **Scenario 2: Chinese Coal Mining** | |
| * **A. Coal Mining Emissions:** | |
| * **Methane Release:** Significant methane emissions during coal | |
| mining operations (methane is trapped within coal seams). This is a | |
| major source of GHG emissions from coal mining. | |
| * **Coal Processing & Transportation:** Dust, methane release | |
| during coal processing and transportation. | |
| * **B. Combustion Emissions (in China):** | |
| * **Combustion of Coal:** Burning coal to generate heat. This is | |
| the primary source of CO2 emissions. Coal combustion is generally more | |
| carbon-intensive than natural gas combustion. | |
| * **Potential for Combustion Inefficiency:** Like natural gas, | |
| coal combustion can be inefficient, releasing unburned coal particles | |
| and other pollutants. | |
| **Comparison of GHG Emissions** | |
| Let's break down the comparison into key areas: | |
| * **Methane Emissions:** Scenario 1 (Dawson Creek LNG) generally has | |
| *higher* methane emissions than Scenario 2 (Chinese Coal). While coal | |
| mining releases methane, the capture and utilization of that methane is | |
| increasing. The upstream losses in Scenario 1 (gas production, | |
| pipeline) are difficult to avoid completely. | |
| * **Carbon Dioxide Emissions:** Scenario 2 (Chinese Coal) *typically* | |
| results in *higher* CO2 emissions per unit of heat produced. Coal is | |
| more carbon-intensive than natural gas. Even with efficiency | |
| improvements in the Dawson Creek LNG pathway, coal generally produces | |
| more CO2. | |
| * **Overall GHG Intensity:** The overall GHG intensity (total GHG | |
| emissions per unit of heat) is a complex calculation. It depends on | |
| various factors, including: | |
| * Methane leakage rates in the Dawson Creek pathway. | |
| * Efficiency of coal mining and combustion in China. | |
| * Transportation distances. | |
| * The specific type of coal being used. | |
| **Overall Assessment:** | |
| * **Historically, the coal pathway has likely been more GHG intensive | |
| overall.** Older coal plants, and older mining practices, tended to have | |
| higher methane leakage rates and lower energy efficiency. | |
| * **The Dawson Creek LNG pathway is becoming increasingly competitive, | |
| but it’s still highly dependent on minimizing methane leakage.** | |
| Improved monitoring technologies, stricter regulations, and better | |
| operational practices are essential to reducing methane emissions in | |
| Scenario 1. If methane leakage can be kept below 0.5% or lower, the LNG | |
| pathway could potentially be lower than Scenario 2. | |
| * **Both scenarios present significant environmental challenges.** | |
| Reducing GHG emissions in both pathways requires ongoing efforts to | |
| improve efficiency, reduce leakage, and transition to cleaner energy | |
| sources. | |
| **Important Considerations:** | |
| * **Well-to-Gate vs. Full Life Cycle:** This analysis focuses on | |
| "well-to-gate" (from extraction to combustion). A full life cycle | |
| assessment would include emissions from manufacturing equipment, | |
| infrastructure development, and decommissioning. | |
| * **Regional Variations:** Mining practices and energy efficiency vary | |
| significantly within China, impacting the GHG intensity of Scenario 2. | |
| * **Technological Advancements:** New technologies, such as carbon | |
| capture and storage, could further alter the GHG intensity of both | |
| scenarios. | |
| ]]></markdown> | |
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