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Issue Category: Issue 1, 2021

  • JANA Corporation

    JANA Corporation

    JANA logo

    JANA’s probabilistic, quantitative approach to risk modeling is industry-leading. Over the past 20+ years, we’ve amassed extensive knowledge about pipelines, building technical expertise in three key domains: Data, Integrity Management, and Quantitative Risk. Our risk models in each of these domains are proven in action and hardened in battle. We’ve backed our probabilistic J-DIMP™ and J-TIMP™ Risk Models with robust software solutions. This combination of risk modeling and software allows our clients to maximize their data and facilitate the comparison of true risk across asset classes — based on facts they can trust and defend.

    Where is your company located?

    JANA is proud to call Aurora, Ontario — just north of the Greater Toronto Area — home since our founding in 1999!

    How many employees do you have?

    As an Authorized Professional Engineering Firm (PEO) in Ontario, JANA has a dedicated, driven and passionate team of more than 80 engineers, project managers, data analysts, software developers, product managers and implementation specialists.

    What is the company’s priority over the next five years?

    Better Pipelines for a Better World: JANA was founded with this mission and we live it every day. This mission defines us, directs us and drives us. We live it by investing deeply in developing the absolute best technology, empowering our clients to genuinely manage their assets in a risk-informed manner and profoundly mitigate the inherent risks of operating pipelines. JANA’s pursuit of our mission is also reflected in our commitment to remaining at the forefront of probabilistic risk modeling. We are actively involved in the gas industry, contributing to growth and change while staying current on regulations.

    What opportunities and challenges does your company face?

    The world of probabilistic risk is still “new.” The most common industry challenge is often choosing an approach appropriate to the nature of the assets and true to the objectives of Integrity Management. JANA sees the opportunities a quantitative probabilistic approach can provide gas operators. These risk models take advantage of data availability to provide predictive forecasts of asset risk. Software can also be employed to turn model outputs into actionable information, giving integrity engineers the tools and visualizations needed to build optimal plans, justify mitigations and understand risk across an entire asset base. “New” is both an opportunity and a challenge!

    In your opinion, what will be the role of natural gas in the next 50 years?

    Pipelines are at the heart of civilization; they deliver us the fluid of life (water), energy (natural gas), handle our wastes and enable many of our production processes. For the most part they go unseen, an invisible network under our feet. At JANA, we believe that the natural gas industry’s focus on innovation, commitment to environmental stewardship and dedication to the future of energy is truly energizing the progress of society. And we don’t see that changing! As new pipelines are installed and our existing pipeline assets age, JANA will continue to partner with pipeline operators in helping them maintain the safety, reliability and cost-effectiveness of these valuable energy assets.

    “[W]e believe that the natural gas industry’s focus on innovation, commitment to environmental stewardship and dedication to the future of energy is truly energizing the progress of society. ”

  • An Interview with Her Worship Lori Ackerman, Mayor of Fort St. John, BC

    An Interview with Her Worship Lori Ackerman, Mayor of Fort St. John, BC

    This interview has been transcribed and edited for length and clarity.

    Timothy M. Egan, President and CEO, Canadian Gas Association: My first question is on the topic none of us seem able to stop talking about — COVID-19 and lockdowns. How is Fort St. John weathering things?

    Her Worship Lori Ackerman, Mayor of Fort St. John, BC: I think our community has kept a good handle on the situation. Our public services have been looking after our vulnerable populations and making sure we are protecting our health care workers — keeping all safe during the pandemic. In the city, we’ve developed our protocols [and] we’ve been managing our operations according to those protocols. When the public health orders shift and change, we shift and change, and we’ve been able to adapt. There have been interruptions with activities at some of our facilities but we moved forward last year with all of our capital projects and we will do so again in 2021.

    I think what has been beneficial for me is I have been involved in emergency management for well over 20 years. I was involved with it when I worked with the Salvation Army, and it really gave me an awareness of how the process works, knowing the benefit of remaining calm, knowing the processes that have to be gone through.

    Egan: That’s great. It speaks to your municipal motto “the energetic city.” And on the topic of energy, I know you have a strong personal commitment to the value proposition of energy resources. Can you talk a little bit about what the “energetic city” slogan means for natural resource development in Fort St. John…and…how natural gas plays in all of that?

    Mayor Ackerman: Well, first of all, I think that you know the energetic city was really about the energy that was around the community and the fact that we have access to just about every source of energy, except tidal, being quite a bit inland from the coast of British Columbia. But you know we’ve got a phenomenal community here. We are a young community — our average age is about 31 and a half — a lot of people come up here to kickstart their careers. These people bring remarkable ideas! I think per capita, we probably have more environmental companies here than there are down in Vancouver. Our outdoors [are] not only where our resources are but that’s where our community recreates and so when you want to talk about environmentalists, it’s the pipeliners, it’s the welders, it’s all of those guys and gals that are out there on the rigs…they’re the environmentalists. They’re making sure that their backyard is not going to be dirty and they have ownership in it because they live here.

    On natural gas, we have a significant opportunity. The LNG Canada — upstream to downstream — is completely contained within the Province of British Columbia. We have a world-class regulator in the BC Oil and Gas Commission that has been able to marry projects like this with BC’s high environmental standards. We’re moving forward.

    A few other things about energy — we were Clean Energy BC’s Community of the Year in 2017 and that was due to a couple of projects that we did. One was Canada’s most northern single-family passive house. Another was our micro-hydro project. We are up on a plateau above the Peace River [and] we spend hundreds of thousands of dollars for high lift pumps bringing that water up, but as we process it, we put the water back down into the river in a better state than we got it. We understood that there was a significant elevation drop there, so we tightened up the line and put an inline turbine in there and wow — we’re making energy! So we’re firm believers that the best form of energy that you can get is what you can conserve, so we have a policy as well that every time we look at [building] or renovating a building…we look through the lens of: what can we do to make it better?

    “[W]e’re firm believers that the best form of energy that you can get is what you can conserve…” |

    Egan: You’ve talked about LNG, passive solar, micro-hydro — different pathways — and I don’t want to put words in your mouth, but you seem to be saying that you want to look at them all. Often, the municipal conversation in Canada seems to be saying “no, we need to choose one and it’s electricity…” How do you respond to that?

    Mayor Ackerman: I remember hearing there was a city in Canada that said that they were just not going to allow any more natural gas in their community, and I smiled and said “well they don’t really have that authority” I can’t go down and tell the hospital or the school district or any other business how they are going to run their business. In fact, I have a natural gas stove and I’m never giving it up!

    I guess people really have to understand the infrastructure — I can go over and hit the light switch, I can hit the thermostat, plug in things — [but] most people are not aware of the significant infrastructure that is behind that light switch, thermostat, or plug-in and what it would take to shift. Unless you’re planning on taking over the entire upstream midstream downstream of this source — your businesses [and] your residents have already made a decision on what energy source they want.

    Egan: When you think about the municipal conversation on energy it’s often dominated by the views of large urban centres. Cities like yours are not heard. Yet, in many respects you’re handling all the same issues and under more difficult circumstances. I was intrigued by your point about how you know the people of your community are very much environmentalists because they’re that much closer to the physical environment around them. Is there a role you can play to deepen the understanding of the bigger cities about the realities of the energy conversation?

    Mayor Ackerman: Quite a few years ago we started an energy literacy campaign. We invite people up and take them out, show them the rigs, show them how everything works so that they completely understood everything that we are dealing with. We take them to the passive house, show them the inline turbine, and take them to the college that has an entire rig set up there that actually can operate to train people… They see the pigs1 (pipeline inspection gear) because that’s something that I understand…and anyone in the industry understands, but these folks have been driving past these pigging stations along the highway without knowing what they are…but when they understand what the pig is and the different types of pigs and what they do, they then understand the integrity of the pipeline and why there’s so much investment put into ensuring that integrity is maintained at all times. We’ve been trying for a long time to have our voices heard. I can tell you that the bullying that happens on social media after something like that — it’s only for the strong of heart to take on those conversations. I have had a few people tell me that I would never win my next election because they were going to tell my entire community that I support the oil and gas industry. You know, I learned a long time ago that there’s always twenty per cent totally in favour, twenty per cent totally against, and sixty per cent — the middle — saying “could you get out of my way, I’m trying to get to work.” I’m a firm believer that the last thing you should think about when you get up in the morning is government. We should not be front of mind and when government is injecting decisions in how we live our daily lives then I think that it’s a little overbearing. People need to understand how statutory decision-making works. They need to understand that we do have institutions in Canada that have significant science-based decision-making. Certainly I’ve gone toe-to-toe with companies that want to build or do whatever in my region — and we’ve got some significant investment in ESG (environmental social and governance) — as a result of engaging in a proactive and productive way. I just think that a lot of communities need to understand that the bullying against those of us who support oil and gas needs to end: communities need to speak out and get engaged.

    Egan: You talk about the bullying, and you talk about being prepared to stand up to those who have ideas that are inconsistent with what you’re trying to do in your own community. What advice do you have for the energy industry to engage with municipalities, particularly in the context of some pretty aggressive energy goals from governments like those in Victoria and Ottawa?

    Mayor Ackerman: First of all, they need to understand the jurisdiction of the regulator, because depending on the project it will either be the Canadian energy regulator or in our case, the BC Oil and Gas Commission. In every province it has a different name. We have an official community plan and it clearly lays out our vision for our community going into the future — it was prepared with significant public participation. Once in place, it’s my job — with my colleagues on council — to put it into effect, consistent with the regulatory regime. So, my recommendation is to understand the regulator’s requirements and the hoops that you need to jump through and then understand the official community plans of the jurisdiction. And then work within those and engage locally to work to show you’re enhancing things in some way, shape or form and leaving the community better off.

    Egan: And what do you say to provincial and federal governments when they engage with you? Sometimes they set plans in the abstract. You, as local government, can’t act in the abstract: you’re much closer to the day-to-day for people. So, what advice do you have for other levels of government?

    Mayor Ackerman: It’s usually the “dirt ministries” (government ministries that deal with land and resources) that come and see us. They’ll talk about a variety of different things but if they don’t understand our official community plan, then they have no idea what our intentions are. I don’t want them to consult with me, I want them to engage with me. The definition of consulting is just listening to what I’m saying and not providing feedback. Let’s not have that — engage with me and let’s have this conversation about what works and what doesn’t. My go-to default conflict management style is collaboration so I will spend countless hours and energy to make something work and I understand the need for collaboration on a lot of projects. Other levels of government need to as well.

    Egan: In the last couple of months a number of things have happened that have made people reflect on energy in a different way. We just saw a pretty scary situation in Texas where a whole energy system was threatened by a severe weather event. Northern communities have a pretty good sense of the importance of reliability and resiliency — do you feel that there’s enough of an appreciation in the national conversation on energy and environment on these issues?

    Mayor Ackerman: My stepson, lives in Lubbock, Texas, and so we’ve been down there a few times. One of the conversations I had down there was around the Canadian safety standards and technology they were looking to implement — we are light years ahead of some of the stuff that they were doing. I think that a lot of the infrastructure that we have in Canada is not appreciated — I think that people really need to understand their vulnerabilities. Nobody in Texas believed that ever would have happened to them but the reality is it did. In Canada, we have probably the best standards globally when it comes to infrastructure in a northern country. I think that there is a lack of awareness, a lack of respect, for our Canadian resources and how we’ve developed them here. I don’t think that’s intentional: people are just not thinking about the work that my residents and residents across other provinces do day in and day out to make sure that absolutely every source of energy is arriving to the consumer safely.

    “I think that a lot of the infrastructure that we have in Canada is not appreciated — I think that people really need to understand their vulnerabilities.”

    Egan: On the topic of appreciation, Canada is blessed with incredibly affordable energy. Do you think that there’s a deep enough appreciation of how important affordable energy is in the minds of your provincial and federal colleagues when they think about some of their energy and environmental plans?

    Mayor Ackerman: In a nutshell, no. I don’t think that they understand it because I don’t think they’ve looked at what it will take to put the infrastructure in to support their ideals. I’m not saying that those shouldn’t be goals, but I can tell you there are neighbourhoods in this province that could not support more than two electric vehicles per neighbourhood because of the aged infrastructure in our electrical system. That’s a significant upgrade that’s going to be needed by that particular utility company in order to achieve that goal. I get that that’s a political decision, it’s an ideal that they’re going for, but I just don’t think there’s a total understanding of it and so I’ve often said to people “look I don’t care what you say on the campaign trail but when [you] get into that chair you’re now a decision maker, you are governing for your entire jurisdiction.” What happens is they focus on their constituents because they want to get re-elected and so they think in four-year chunks or whatever the election cycle seems to be, so nothing ever really gets done.

    Egan: I hope we can get lockdowns lifted soon so more Canadians can get up to the beautiful part of the world around Fort St. John and hopefully listen to some of the insights of people like you about how to get things done. Thank you for speaking with us today and we appreciate your time and your perspective on the natural gas industry.

    1. Anatomy of a Smart Pig, online: <www.cepa.com/wp-content/uploads/2016/11/PigAnatomy-Infographic-v4_updated1.pdf>.

  • When Was Canada’s Natural Gas Distribution System Built, and What Is It Made Of?

    When Was Canada’s Natural Gas Distribution System Built, and What Is It Made Of?

    Did you know that Canada’s natural gas system dates back to even before the country’s Confederation?

    It is true — Canada’s first transmission pipeline was built in 1853. The 25 kilometre pipeline was made of cast iron and moved natural gas — at the time, it was the longest pipeline in the world!1

    Natural gas delivery has been around a long time in Canada, but its significant growth really occurred after the Second World War.

    Distribution mains (the pipes under roads and between communities) were built with increased frequency over the middle decades of the 20th century, with construction peaking in the 1980s.  More recently, we have seen new additions to the natural gas distribution system slow, as most large populated regions of the country are already connected to the gas network.  Given the thousands of kilometres of mains and services pipelines installed over decades, it is not surprising that natural gas utilities are spending close to $3 billion each year to renew and extend their systems.

    Bare steel and cast iron pipelines were more steadily constructed between the 1950s to 1980s to transport manufactured gas. As unprotected steel and cast iron are prone to corrosion and small leakages, they have been phased-out over time. Modern distribution systems no longer include cast iron, and steel pipelines are protected by specialized coatings and corrosion-prevention systems. Polyethylene (PE) is considered a very suitable pipeline construction material and has been used on an increasing basis over the years, including in higher pressure systems. The majority (71%) of the pipeline distribution system, both mains, and services, in Canada are comprised of high and medium-density PE.  The Canadian Gas Association’s utility members no longer have cast iron pipelines and the switch to PE pipes has resulted in significant greenhouse gas (GHG) reductions. By way of example, from the 1990s to early 2012, Enbridge Gas replaced around 1,800 km of cast iron and coated steel pipelines, which led to a reduction of 145,000 tCO2e of fugitive methane emissions, annually.2

    Figure 1: Historical Mains and Services pipeline additions for the gas distribution system

    Figure 2: Distribution of pipeline materials for Canada’s natural gas distribution system

    * Includes Aluminium, PVC and Composite for Mains and Services 

    1. “Pipeline History” online: About Pipelines <https://www.aboutpipelines.com/en/pipeline-101/pipeline-history/>.
    2. “Resilient Energy Infrastructure: Addressing Climate-Related Risks and Opportunities” online: Enbridge Gas <www.enbridge.com/sustainability-reports/resilient-energy-infrastructure/metrics-and-targets>.

  • Hydrogen: Path to Net Zero or Zero Sum?

    Hydrogen: Path to Net Zero or Zero Sum?

    Canada and the United States Pursue Hydrogen Economies

    Will hydrogen fuel cells provide an energy storage solution for heavy vehicles in the transportation sector and compensate for the intermittency of wind, solar, and other energy sources? In recent months both the United States1 and Canada2 have issued federal strategies for the development of hydrogen economies, from hydrogen production to fuel cell applications, that are framed as an essential element in reaching net zero carbon emissions.

    The technology for fuel cells dates to the 19th century, when William Nicholson and Anthony Carlisle managed to “break” water into its two elements, hydrogen and oxygen, using electricity. This process, called electrolysis, was used by William Grove to create the first functioning fuel cell in 1839 when he generated electricity from an electrochemical reaction of hydrogen and oxygen using platinum as a catalyst. Getting electricity out of the fuel cell showed that fuel cells could function as a battery.

    Research subsequently produced several types of fuel cells with different properties that make them suitable for a variety of applications. Hydrogen is the fuel in the fuel cell, but when combined with oxygen, usually air, it produces electricity from a chemical reaction rather than combustion. The byproduct is water.

    A few fuel cell types3 are suitable for applications that reduce the amount of fossil fuel combustion and therefore provide a means to displace carbon emissions. Governments seeking to make good on pledges to reduce carbon emissions to “net zero” (where carbon emissions are matched by carbon emission reductions) have led the development of national hydrogen strategies.

    Hydrogen is an abundant element, but typically found in combination with oxygen (water) and carbon (hydrocarbons). Each hydrogen source has vocal proponents and opponents and although the resulting hydrogen is the same, the political debate over hydrogen has become colourful — literally.

    When a hydrocarbon is split into its constituent elements, hydrogen and carbon, the carbon byproduct can be released into nature or captured. Carbon captured can be used in industrial processes or stored to prevent negative environmental impacts. Hydrogen from hydrocarbons without carbon capture has been labeled “gray.” When the carbon is captured, the hydrogen is called “blue hydrogen.”

    Blue hydrogen is clearly better for the climate than gray hydrogen, but there is also green hydrogen. Green hydrogen is produced through electrolysis, the process Nicholson and Carlisle pioneered. Green hydrogen proponents envision electricity produced by zero-emission methods — solar cells, wind turbines, hydroelectric dams, and nuclear power plants — as a promising method for decarbonizing economies without starving them of energy. Currently, the cost of producing green hydrogen is higher than the cost of producing blue hydrogen — and while the economics of green hydrogen may improve over time as technology advances — there will likely always be a cost disadvantage given the fact that there are multiple energy conversions involved.

    This is the second reason for governments to develop national hydrogen strategies, beyond their net zero pledges. The science is indifferent to the choice between blue or green methods of producing hydrogen; the economics of the two methods favour blue today, but green is working to close the gap. And so the choice is a political one.

    For regions with large hydrocarbon resources, like Alberta or Texas, blue hydrogen production offers a way to participate in national and international efforts to address climate concerns. People in these places often have a conservative political outlook. The boom-and-bust cycles typical of commodity markets provide enough risk and uncertainty. Sticking with the tried and true, striving to live up to the values that reflect good character, are virtues that prove their worth in hard times when you learn who you can count on, and who your true friends are.

    Leaders in Ottawa and Washington in 2021 are progressive and green hydrogen production has appeal for them because it reflects the power of technology to allow nations to reach ambitious climate goals. The urgency of those goals justifies major changes, overriding objections and riding over naysayers.

    And yet, both Canada and the United States have adopted hydrogen strategies that contemplate the full spectrum of colours in hydrogen production. In part, this ecumenism on hydrogen supply reflects the problem of demand. Hydrogen fuel cells will advance the electrification of transportation and help electrical grids to balance intermittent generation.

    The significant investments in fuel cell vehicles and fuel cell installations by electric utilities — and a major expansion of electricity generation, transmission, and distribution capacity across the continent — will be difficult while economies are still recovering from the pandemic. Building back better will require broad support and will be harder if advocates of blue and green methods of producing hydrogen start fighting now.

    Member companies of the Canadian Gas Association will be pivotal in the debates over hydrogen in North America. Hydrogen supply logistics are more likely to resemble those for natural gas than for oil, since hydrogen can be produced in many places and transporting hydrogen by ship requires a maritime fleet that does not exist yet. Like gas, hydrogen may develop supply hubs that connect to consumers through pipe and some land transport of hydrogen in the form of ammonia or methanol for transit.

    “Hydrogen supply logistics are more likely to resemble those for natural gas than for oil, since hydrogen can be produced in many places and transporting hydrogen by ship requires a maritime fleet that does not exist yet.”

    Adding hydrogen in existing gas pipelines is an option but carries risks because adulterating the gas affects the pressure in the pipe. A network of dedicated hydrogen pipelines would cost more now but make more sense over the medium term while demand is established. Separate pipelines for green and blue hydrogen would exponentially increase cost and provide no real benefit since the hydrogen they deliver is the same.

    Washington and Ottawa will try to navigate their economies to a hydrogen transition to reach net zero. Given the recent track record of politicians agreeing on anything, the hydrogen economy might never take off. The blue versus green debate could stall the hydrogen economy, too.

    CGA members know what it takes to move hydrogen as a component of methane. They understand the importance of equipment in enabling demand, and reliability in convincing consumers to choose to invest in equipment to use their product. In a rational world, the natural gas sector would be managing the transition to hydrogen if that is what consumers want.

    “CGA members know what it takes to move hydrogen as a component of methane. They understand the importance of equipment in enabling demand, and reliability in convincing consumers to choose to invest in equipment to use their product.”

    Progress in vaccinations and beating back COVID-19 might make our energy debates in Canada and the United States a bit more rational, but both countries’ hydrogen strategies will remain political, and therefore uncertain, as long as net zero goals are a zero-sum equation for blue and green hydrogen.

    Christopher Sands is director of the Woodrow Wilson International Center for Scholars’ Canada Institute and a senior research professor at Johns Hopkins University’s Paul H. Nitze School for Advanced International Studies, both in Washington D.C.

    1. Energy Department Releases its Hydrogen Program Plan (12 November 2020), online: Department of Energy <www.energy.gov/articles/energy-department-releases-its-hydrogen-program-plan>.
    2. Hydrogen Strategy, online: Natural Resources Canada <www.nrcan.gc.ca/climate-change/the-hydrogen-strategy/23080>
    3. Types of Fuel Cells, Hydrogen and Fuel Cell Technology Office, online: <www.energy.gov/eere/fuelcells/types-fuel-cells>.