natural gas in canada canadian gas association camput regulatory course june 2015
TRANSCRIPT
Natural Gas in Canada
Canadian Gas Association
CAMPUT Regulatory Course
JUNE 2015
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THE CANADIAN GAS ASSOCIATION
NATURAL GAS
NATURAL GAS
• Natural gas is more than 95% methane (CH4).
• It is generally located deep under ground in porous rock formations sandwiched or trapped between more solid rock formations.
• Biomethane, Biogas, RNG, CNG, LNG all are forms of natural gas.
NATURAL GAS ATTRIBUTES
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Affordable
Annual production of over 2.8 trillion cubic feet to meet over 30% of Canada’s energy needs in more than 6.5 million homes, businesses, and industry; Canada’s robust supply outlook provides increased confidence in future price competitiveness.
AbundantMore than 100 years of supply at current production levels. Unconventional gas has fundamentally changed North America’s supply picture, providing long-term security and reliability.
Clean Efficient and clean burning energy choice; fewer emissions than many other fuels; important partner for renewables and emerging low-emission technologies.
Versatile Can improve end-use efficiency, contribute to lower emissions, and provide flexible partner in power generation and transportation.
Reliable Comes from a variety of sources and is supported by extensive storage and pipeline networks.
Safe Leaders in complying with stringent safety standards and regulations at all stages of natural gas exploration, production, transportation, distribution and use.
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Conventional (excl tight gas)
83.08%
Tight Gas530.049%
CBM35.03%
Shale Gas222.020%
Frontier223.020%
Natural gas resources & reserves - Canada(trillions of cubic feet)
Source: National Energy Board, US Geological Survey
NATURAL GAS RESOURCES
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NATURAL GAS EXPLORATION
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NATURAL GAS TRADE
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NATURAL GAS PRODUCTION
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Natural gas30.8%
Electricity (hydro, nuclear)22.5%
RPP38.1%
All others*8.5%
Energy final demand - Canada - by type (%)
Source: StatCan 128-0016
*Coal, NGLs, coke, coke oven gas, steam
ENERGY USE
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NATURAL GAS USE – BY SECTOR
Industrial32.8%
Road Transport0.0%
Pipelines2.9%
Agriculture1.0%
Residential16.3%
Public Admin./Commercial
12.0%
Power gen.14.7%
All others *20.3%
Natural gas - final demand- by sector (TJ,%)
Source: Statcan 128-0016
* RPP, steam, producer consumption and non-energy use
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NATURAL GAS EMPLOYMENT
0
20000
40000
60000
80000
100000
120000
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Direct Employment - Natural Gas Sector (full time equivalent)
Natural gas distribution Pipeline transmission
Natural gas extraction Support for extraction
Source: StatCan 281-0024, CGA
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NATURAL GAS INVESTMENT
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
Capital Investment - Natural Gas Sector($C millions)
Natural gas distribution Pipeline transmission
Natural gas extraction Support for extraction
Source: StatCan 031-0002, CGA
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NATURAL GAS GDP
Natural gas extraction
$24,211
Support for extraction
$2,121
Pipeline transmission
$2,939
Natural gas distribution
$5,042
GDP - Natural gas Sector 2013 ($C 2007 millions)
Source: StatCan 379-0031, CGA
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NATURAL GAS PIPELINES
Distribution mains
243,819
Transmission mains67,160
Service lines134,863
Natural gas distribution systems - Canada 2013(kilometres)
Source: Canadian Gas Association
445,842Total Kilometres
of Pipleline
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NATURAL GAS STORAGE
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ENERGY COMMODITY PRICES
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GLOBAL NATURAL GAS PRICES
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NATURAL GAS CONSUMERS – BY TYPE
Industrial22,206 0.3%
Commercial565,627
8.6%
Residential5,973,983
91.0%
Natural gas customers - Canada - by type (number)
Source: StatCan 129-0003
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NATURAL GAS CONSUMERS – BY REGION
BC983,154 15.0%
Alta1,250,944
19.1%
Sask365,786
5.6%
Man253,527
3.9%
Ont3,477,627
53.0%
Que213,949
3.3%
NB12,054 0.2%
NS4,784 0.1%
Natural gas customers - by province (number)
Source: StatCan 129-0003
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NATURAL GAS CONSUMER SPENDING
Electricity $18,901
26%
Natural gas $6,374
8%
Other fuels $4,358
6%
Motor fuels and lubricants
$44,052 60%
Energy spending - Canada($millions/%)
Source: StatCan 380-0085
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NATURAL GAS RESIDENTIAL CONSUMERS
Electricity24%
Natural gas56%
Heating oil10%
Wood9%
Propane & Coal1%
Space & Water Heating - Canada
Source: NRCan End Use Database
NATURAL GAS – IN HOMES
• Statistics Canada reports that total household spending on natural gas has declined from $8.1 billion in 2008 to $6.4billion in 2013.
• Meanwhile, StatsCan reports that electricity spending has increased from $15.5 billion in 2008 to $18.9 billion in 2013.
• This chart illustrates a cost-comparison of natural gas, electricity, heating oil, and propane in 2013.
• In 2013, the average household spent between $1,358 to $4,191 to heat their home - with a savings of over $3,000 by choosing natural gas over home heating oil.
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NATURAL GAS – IN TRANSPORTATION
On Road:• Commercial Canadian heavy engine technologies:
• Reduce lifecycle carbon emissions by 20-25% and 85-90% using renewable natural gas (RNG)
• Lower cost fuel for trucking, refuse, transit, vocational trucks.
For Marine:• Opportunities on Great Lakes.• Ferry applications.
For Rail:• Strategic re-fuelling hubs can create a cleaner,
safer, more economic North American rail re-fuelling network.
For Off-Road• LNG in Canadian mining and other vehicle
operations to improve competitiveness, attract investment and lower cost and emissions.
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Freight rail: 3% of Canadian Transportation Energy Use
Marine: 4% of Canadian Transportation Energy Use
Heavy duty, medium, and freight light duty: 35% of Canadian Transportation Energy Use
Off road: 4% of Canadian Transportation Energy Use
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NATURAL GAS – IN POWER GENERATION
Hydraulic turbine60.06%
Tidal power turbine0.00%
Wind power turbine1.63%
Solar0.04%
Other types of electricity generation
0.41%
Nuclear steam turbine14.25%
Coal11.52%
Natural gas9.06%
Diesel and light fuel oil0.17%
Heavy fuel oil0.74%
Wood and spent pulping liquor
0.82%
Propane & other fuels
1.30%
Power generation - by source
Source: StatCan 128-0014
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NATURAL GAS – DECISION TRACKER www.trackenergyregs.ca
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NATURAL GAS – ENERGY REGULATION QUARTERLYwww.energyregulationquarterly.ca
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ENJOY THE REST OF THE COURSE