- Table of Contents
Canada is situated in the northern part of America and is bordered to the south and northwest by the US; to the east by the Atlantic Ocean; to the west by the Pacific Ocean and to the north by the Arctic Ocean. Canada has a total surface of 9,984,670 square kilometers (3,854,085 sq mi) which makes Canada world’s second largest country by total area. Canada is inhabited by approximately 34.78 million people (2012 estimate). In 2011, it has the world's eleventh largest economy by nominal GDP (1.76 trillion US$; CIA World Factbook estimate) and is ranked fourteenth in the world on GDP when measured by purchasing power parity (1.39 trillion US$; IMF estimate). It conducts a large portion of its trade with the US Furthermore, Canada is a member of the G8, G-20, NATO, OECD, WTO, Commonwealth, Francophonie, OAS, APEC, and UN.[1]
Canada is the second largest gas consumer in OECD Americas after the US. Within this subgroup of the OECD, consisting of the US, Canada, Mexico, and Chile, Canada has one of the highest shares of natural gas in its energy mix (around 30%). Canada has a natural gas supply per capita of 2.27, the highest in OECD Americas. Canada is the second largest producer of gas, both within this group and in the world. Most of its produced gas is exported to the US. Canada has a total storage capacity of 21,145 mcm in 2010, which covers about 22% of its domestic consumption. [2]
| Basic Gas Facts | 2006 | 2007 | 2008 | 2009 | 2010e |
|---|---|---|---|---|---|
| Gas reserves (bcm) | .. | 1647 | 1639 | 1753 | - |
| Gas production (mcm) | 188352 | 183803 | 176326 | 163768 | 160022 |
| Gas consumption (mcm) | 89795 | 99388 | 97686 | 96983 | 96377 |
| Gas imports (mcm) | 9633 | 13109 | 15601 | 20659 | 22621 |
| imports pipeline (mcm) | 9633 | 13109 | 15601 | 19682 | 20510 |
| imports LNG (mcm) | - | - | - | 977 | 2111 |
| Import dependency (%)* | - | - | - | - | - |
| Gas exports (mcm) | 101888 | 107163 | 103000 | 95240 | 94293 |
| Natural gas supply per capita (toe) | 2.444 | 2.447 | 2.348 | 2.331 | 2.273 |
| Technically recoverable shale gas resources (bcm) | .. | .. | .. | 10988.16 | .. |
| Coal Bed Methane reserves** | .. | .. | .. | .. | .. |
| c = confidential; - = nill; ..= not available * Imports dependency of natural gas = (imports - exports) / consumption **Proven & Probable (2P); U.S. Environmental Protection Agency, Coalbed Methane Outreach Program Sources: Natural Gas Information © OECD/IEA, 2011, EIA Analysis & Projections, GMI/EPA Coal Mine Methane Country Profiles | |||||
| Basic Energy Facts | 2006 | 2007 | 2008 | 2009 | 2010e |
|---|---|---|---|---|---|
| Total Energy Consumption (mtoe) | 269.2 | 272.1 | 266.54 | 254.12 | 255.32 |
| CO2 Emissions, energy-related (Mt) | .. | .. | .. | .. | .. |
| CO2 intensity, energy-related (tCO2/toe) | 313 | 298 | .. | .. | .. |
| Energy consumption per capita (toe/cap) | .. | 2.13 | 2.07 | 2.05 | .. |
| CO2 per capita, energy-related (tCO2/cap) | .. | 17.37 | 16.53 | 15.43 | .. |
| c = confidential; - = nill; ..= not available Sources: Natural Gas Information © OECD/IEA, 2011 & EIA International Energy Statistics | |||||
- 1. Natural Gas Information © OECD/IEA, 2011
- 2. EIA Analysis & Projections - World Shale Gas Resources 2011
- 3. Global Methane Initiative/U.S. Environmental Protection Agency - Coal Mine Methane Country Profiles 2010
- 4. EIA International Energy Statistics 2010-2011
This section explores total primary energy consumption (TPEC) and gas demand by sector for Canada.
In 2010, Canada consumed an estimated total of 96,377 mcm of natural gas, which is only a minor decrease as compared to the consumption in the previous year. Of its estimated consumption in 2009, 29,041 mcm were used for industry (excluding the energy industry itself, which used 17,653 mcm), while 31,044 mcm was consumed by other sectors.*
Transformation includes the generation of electricity, while the demand from the ‘Industry’ refers to gas used for such things like the chemical-, iron and steel- and machinery industry. The demand from the ‘Energy Sector’ refers to gas used for the extraction of coal, oil, and gas and gas used in refineries, coke ovens and gas works.[1]
In 2010, Canada’s TPEC amounted to an estimated 255.33 mtoe, which is a very minor increase compared to 2009 (0.04%). Oil accounted for 91.76 mtoe, while coal and gas accounted for 22.87 mtoe and 77.09 mtoe respectively. Other sectors accounted for 63.61 mtoe. [1]
This section deals with gas reserves, exploration & production, gas imports and gas exports.
The indigenous gas resources of Canada are considerable. It hosts approximately 0.92% of the world total reserves at the end of 2010 with 1,744 bcm. [1] The reserves-to-production ratio for Canada at the end of 2010 is 10.8 years, which is lower than the EU average of 14 years.
*Reserves-to-production (R/P) ratio – If the reserves remaining at the end of any year are divided by the production in that year, the result is the length of time that those remaining reserves would last if production were to continue at that rate.
In 2010, Canada was the 2nd largest gas producer in OECD Americas, producing 160,022 mcm of natural gas, about 2% less that in the previous year. [1]
| By country of origin (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010e | %Total 2010 |
|---|---|---|---|---|---|---|
| US | 9633 | 13109 | 15601 | 19682 | 20510 | 90.67% |
| Trinidad and Tobago | - | - | - | 800 | 1595 | 7.05% |
| Russia | - | - | - | 93 | 424 | 1.87% |
| Egypt | - | - | - | 84 | - | - |
| Other | - | - | - | - | 92 | 0.41% |
| Total | 9633 | 13109 | 15576 | 18618 | 22621 | 100% |
| %Total Consumption | 10.73% | 13.18% | 15.94% | 19.19% | 23.47% | - |
| c = confidential; - = nill; ..= not available Source: Natural Gas Information © OECD/IEA, 2011 | ||||||
| By transport type (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010e | %Total 2010 |
|---|---|---|---|---|---|---|
| Pipeline imports | 9633 | 13109 | 15601 | 19682 | 20510 | 91% |
| LNG imports | - | - | - | 977 | 2111 | 9% |
| Total | 9633 | 13109 | 15576 | 18618 | 22621 | 100% |
| %Total Consumption | 10.73% | 13.19% | 15.94% | 19.20% | 23.47% | - |
| c = confidential; - = nill; ..= not available Source: Natural Gas Information © OECD/IEA, 2011 | ||||||
Gas imports account for 23.47% of the total volumes of consumed gas in Canada. Almost all of Canada´s gas imports are being accomplished via pipeline and only 9% is imported via LNG. Canada’s gas pipeline imports originate from the US. In 2010, the share of US gas in Canada’s gas imports contracted to 90.67% and the share of Trinidad & Tobago gas in Canada’s imports almost doubled to 7.05% of the total as compared to 2009.[1]
| By country of origin (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010e | %Total Exports 2010 |
|---|---|---|---|---|---|---|
| U.S. | 101888 | 107163 | 103000 | 95240 | 94293 | 100% |
| Total | 101888 | 107163 | 103000 | 95240 | 94293 | - |
| %Total Production | 54.09% | 58.30% | 58.41% | 58.16% | 58.92% | - |
| c = confidential; - = nill; ..= not available, e = estimated Source: Natural Gas Information © OECD/IEA, 2011 | ||||||
The U.S. is the sole export market for gas for Canada. In 2010, Canada exported an estimated 94,293 mcm to the U.S. This was 1% less compared to 2009, when Canada exported 95,240 mcm to the U.S. [1]
This section deals with the gas grid, LNG terminals and storage facilities in Canada.
All transmission pipelines, both inter- and intra- provincial, are owned and operated by public companies, with TransGas Limited in Saskatchewan as an exception. Canadian companies also own shares in transmission pipelines in the U.S.[1] TransCanada (privately owned) is the largest operator, wholly owning more than 57,000 km (35,500 mi) of network. This includes several province systems like the 23,095 km (13,900 mi) long Alberta system, the 17,000 km (10,563 mi) long ANR, and the 14,101 km (8,900 mi) long Canadian Mainline system. TransCanada also partially owns other, smaller natural gas pipelines. TransCanada transports about 30 bcm per day. Distribution is done by regional and local distribution companies with exclusive rights.
Future projects
Several proposals for pipelines, mostly to deliver gas from either Alaska or the Mackenzie Delta, are under discussion. These proposals, if approved, would provide access to additional gas supply and would utilize the existing pipelines throughout western Canada. [2]
| Project | Type | Sponsors | Total Length (km) | Diameter (mm) | Technical Cap. Pipes** | Max. operating pressure (psig) | Sources | Expected Benefits/Explanation |
|---|---|---|---|---|---|---|---|---|
| Alaska Pipeline Project (Alberta Case) | Pipeline (incl. CSs*) | TransCanada, ExxonMobil | 2762 | 1200 | 47.5-61 | 2500 | Prudhoe Bay Field | Transporting gas into U.S. & meet community goods by local suppliers |
| Alaska Pipeline Project (Valdez LNG Case) | Pipeline (incl. CSs) | Third parties | 1305 | 1200 | 31.0104 | 2500 | Prudhoe Bay Field | Exporting LNG & meet community goods by local suppliers |
| Horn River Mainline Pipeline | Pipeline (incl. CSs) | NOVA Gas Transmission Ltd. (NGTL, wholly owned subsidiary of TransCanada) | 72 | 914 | .. | .. | Northeastern British Columbia shale basins | Extension of the Alberta System |
| Mackenzie Gas Project | Pipeline (incl. CSs) | TransCanada, Imperial Oil Resources, ConocoPhilips, Shell Canada Limited, ExxonMobil Canada (the Producers) and Aboriginal Pipeline Group | 1196 | 762 | .. | .. | Tagly, Parsons Lake, Niglintgak fields | Gas gathering, liquids extraction, liquids pipeline, and field developments connecting northern onshore fields with North American markets |
| Northwest System Expansion Projects | Pipeline (incl. CSs) | NOVA Gas Transmission Ltd. (NGTL, wholly owned subsidiary of TransCanada) | .. | .. | .. | .. | .. | This is an overarching project involved in multiple of the other projects. |
| Parkway Project | Pipeline (incl. CSs) | TransCanada | 12.9 | 1067 | .. | .. | Marcellus Shale | SoS***, bi-directional flow of gas through existing TransCanada Mainline & financial benefits for locals |
| *compressor station **bcm/year ***Security of Supply Source: TransCanada.com | ||||||||
At the end of 2010 there is one operational LNG terminal in Canada, namely Canaport LNG, with a nominal capacity of 10 bcm per year. There is one terminal proposed, namely Kitimat LNG which is planned to have a capacity of 14 bcm per year.[1],[2]
| Site | Storage | - | Regasification | - | Owner | Operator | TPA | Start-up | Source of import | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| - | #Tanks | Cap.* | #Vaporizers | Cap** | - | - | - | - | - | - |
| Canaport LNG | 3 | 160 | 8 | 10 | Repsol Energy Canada, Irving Canaport | Repsol Canada | Yes | 2009 | Trinidad & Tobago, Qatar | E |
| Kitimat LNG | .. | .. | .. | 14.04 | Apache Canada, EOG Resources Canada | .. | .. | 2015/2016 | - | U |
| c = confidential; - = nill; ..= not available E = existing; U = under construction; P = proposed * capacity in m3 x1,000 of LNG **nominal capacity in bcm/year of gas Source: GIIGNL 2010 & Natural Gas Information © OECD/IEA, 2011 | ||||||||||
Storage facilities are owned and operated by private companies, except those in Saskatchewan, which are owned by TransGas.[1] At the end of 2010 there are 18 operational storage facilities in Canada with a combined technical storage capacity of 21,145 mcm. There are ten depleted gas fields, three depleted reefs, three LNG peak shaving units and two salt cavities with an aggregated peak output of 342.4 mcm/day. [2]
| Nr. | Facility name | Operator | Storage Capacity (mcm) | Withdraw (mcm/day) | Injection (mcm/day) | TPA* | Type |
|---|---|---|---|---|---|---|---|
| 1 | Aitken Creek | .. | 2380 | 10.8 | .. | .. | Depleted Gas Field |
| 2 | Carbon | .. | 1388 | 17 | .. | .. | Depleted Gas Field |
| 3 | Countess | .. | 1275 | 35.4 | .. | .. | Depleted Gas Field |
| 4 | CrossAtla | .. | 2011 | 15.6 | .. | .. | Depleted Gas Field |
| 5 | Dawn | .. | 4419 | 70.8 | .. | .. | Depleted Reef |
| 6 | Edson | .. | 1416 | 20.5 | .. | .. | Depleted Gas Field |
| 7 | Ft. Saks. | .. | 113 | 15.9 | .. | .. | Salt Cavern |
| 8 | Hagar | .. | 142 | 1.4 | .. | .. | LNG Peak Shaver |
| 9 | Hythe | .. | 283 | 5.7 | .. | .. | Depleted Gas Field |
| 10 | Montreal LNG | .. | 57 | 5.8 | .. | .. | LNG Peak Shaver |
| 11 | Point du Lac | .. | 82 | 2.7 | .. | .. | Depleted Gas Field |
| 12 | Sabine Hub Services | .. | 991 | 18.4 | .. | .. | Depleted Gas Field |
| 13 | Severn Creek | .. | 595 | 5.7 | .. | .. | Depleted Gas Field |
| 14 | Suffield | .. | 2266 | 51 | .. | .. | Depleted Gas Field |
| 15 | Tecumseh | .. | 2691 | 42.5 | .. | .. | Depleted Reef |
| 16 | Tilbury | .. | 17 | 4.2 | .. | .. | LNG Peak Shaver |
| 17 | Trans Gas | .. | 906 | 15.6 | .. | .. | Salt Cavern |
| 18 | Tipperary | .. | 113 | 3.4 | .. | .. | Depleted Reef |
| - | Total | - | 21145 | 342.4 | .. | - | - |
| * Third Party Access: Regulated ( R) - Negotiated (N) - Hybrid (H) - Not Applicable (X) Source: Natural Gas Information © OECD/IEA, 2011 | |||||||
This section deals with the gas market regulation upstream, in the transmission grid and downstream.
Canada is one of the major gas suppliers to the US. Redundant production is exported to the US via pipelines in the states Idaho, Montana, North Dakota and Minnesota. In total the exported volume represents about 86% of the total US natural gas imports in 2007. About 98 percent of Canada's gas production comes from the Western Canada Sedimentary Basin (WCSB). The remaining 2% is produced by the offshore Nova Scotia field. Imperial Oil, of which the majority is owned by ExxonMobil, is the largest integrated operator in the country. In 2002, Encane (merger between Alberta Energy Company and PanCanadian Energy) was created, Canada's largest independent upstream operator. Other major companies are Shell, Petro-Canada, Suncor and Talisman Energy. In 1985 an agreement among the producing provinces (Alberta and Saskatchewan), the government of Canada and the consuming provinces started the deregulation of the Canadian gas industry by separating merchant functions by transmission functions. Prior to this agreement, TransCanada Pipelines acted as a merchant for all the producers in western Canada, while the government of Canada determined the price of natural gas to be charged to end consumers. As a result of the agreement, since Oct. 31 1987, consumers of natural gas in Canada were free to purchase their natural gas supplies from whichever producer they chose. Wholesale prices are market-based.[1]
TransCanada Pipeline (privately owned) is the largest operator (see section 5.1 ‘Gas Grid’). The gas market is served by several major transmission pipelines, which connect with the US grid at about a dozen points. There are six gas export pipelines connecting Canada to the natural gas system in the US. Transmission, distribution and storage are partially privatized. The distribution companies in Canada have been given franchise areas to serve customers. These franchises are granted by local municipalities to serve the residents and businesses of their municipality for a specified period of time. [1]
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