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Issue Category: Issue 2, 2024

  • A Message from the President and CEO of CGA

    A Message from the President and CEO of CGA

    The critical role of natural gas in Canada is most apparent when the snow starts falling. Almost 7 million Canadian homes depend on the country’s most reliable and affordable fuel choice to meet critical heating needs, as fall gives way to winter.

    We are seeing more than seasonal change these days though – it is happening in politics, too. Donald Trump’s return to the White House, alongside Republican gains in the US Congress, point to a significant re-direction in American energy policy. As of January 20th, the implications of a plan for ‘U.S. energy dominance’ will begin to be revealed, and natural gas is expected to be a big beneficiary. The once and future President has said his administration will deliver more energy reliability, economic growth, and geopolitical strength. Policies aimed at easing infrastructure restrictions, streamlining regulations, and boosting gas production are all expected.

    For Canada, this shift brings both opportunities and challenges. If there is material economic growth and gas sector expansion in the U.S. it will deliver derivative benefits for Canada as it always does. Living next to the world’s biggest economy has its privileges. However, a lack of similar energy sector support in Canada will mean investment will be more attracted to the US, compounding existing affordability challenges in Canada.

    Our political commentator discussion on this issue speaks to this point. We have asked our contributors to provide their assessments of how political parties are positioning themselves to address energy affordability in Canada.

    In our spotlight interview, we profile our new Board Chair, Roger Dall’Antonia, President and CEO of FortisBC. Dall’Antonia has led FortisBC with a clear focus on the reliability and sustainability of energy delivery. Since assuming the role, he has emphasized a customer-centric approach, and he talks about what that means for British Columbia.

    Natural gas is overwhelmingly methane, and methane has been front and centre in many domestic and international policy discussions of late. This issue includes a piece discussing the vital role methane plays and how the Canadian gas industry is working to effectively manage methane emissions with both existing and emerging practices and technologies.

    We also had the opportunity this issue to speak with Imad Khaled, CGA’s 2023 Young Business Leader of the Year and Director of Engineering and Construction Services at Apex Utilities Inc. He reminds us that, as the world’s sixth-largest energy producer, Canada is well-positioned to meet growing global energy demand. With supportive policies, Canada’s innovative energy sector is equipped to deliver responsibly produced energy for our customers here and those around the world.

    And finally, our SMC profile with EWI reinforces natural gas as an essential part of the energy mix, helping to ensure a reliable and sustainable energy future.

    Keeping Canadians warm and keeping our economy running smoothly 24/7 is what the natural gas industry is all about, and we in the industry are thankful for the opportunity we have to serve Canadians by meeting these needs.

    In a troubled world, we have much to be thankful for as Canadians, something we all reflect on at this time of year – may there be “peace on earth, goodwill towards men,” and may all our readers have a safe and happy holiday season.

    A Merry Christmas and a Happy New Year to all!

  • Pre-Heating Season

    Pre-Heating Season

    As the end of summer approaches, the fall season signals the return of crisp and cool temperatures. In the natural gas sector, this marks a period known as the pre-heating season, just before the onset of colder winter temperatures. With 7 million homes in Canada that rely on natural gas to stay warm, the gas furnace, which was likely been used sparingly in the summer, suddenly becomes the most important appliance in the home in the winter.

    As such, the pre-heating season is usually the best time to perform some regular maintenance on your gas furnace. This helps to ensure that everything is running as safely, as reliably, and as efficiently as possible. After all, it is better to find a problem now than in the dead of winter in the middle of an extreme snowstorm. A sudden furnace breakdown in the winter is not just inconvenient; it can cause truly unsafe conditions.

    Home heating tune-ups

    There are several of actions that individuals can take to ensure that your gas furnaces are in tip-top shape prior to the start of the winter heating season.

    Replace your furnace filters – this should also be done every three months or when the filter is dirty. A clean filter maximizes airflow and ensures that your furnace runs as efficiently as possible, minimizing your energy consumption and maximizing your cost savings.

    Check your thermostat – turn on the thermostat and ensure that the furnace turns on as expected. Review your setpoints and programs to ensure that they are still applicable. If you have a smart thermostat, check for any software updates as well.

    Check Air Supply and Flue Gas Vents – ensure that the air supply line and the flue gas vent outside of your home are clear of obstructions like furniture, dust, vegetation, or leaves that may have accumulated throughout the summer and fall.

    Listen for strange noises or smell for odd odor – strange noises could be indicative of a mechanical issue and strange odors may be indicative of a leak. In either case, seek professional help to diagnosis and repair the problem.

    Calling a professional

    While the steps outline above are important, seeking professional help is the most prudent way to ensure everything is in working order. Make sure to schedule an inspection for your gas appliance with a licensed HVAC contractor in your area. A professional tune-up may include the following services:

    • Inspection of mechanical components in the air blower, heat exchanger, and burners
    • Cleaning and/or lubrication of mechanical components (like fans and motors)
    • Inspection and cleaning of the pilot light system
    • Inspection of the ductwork and vents
    • Electrical inspection of the controllers, thermostat, or furnace switch.

    Support from natural gas utilities

    If you are looking to get your furnace ready for the winter, your local natural gas distributor is a good place to start to look for support. Gas utilities provide a wide range of supports for homeowners to seek help from professional maintenance services.

    Inspection Programs

    Some local gas companies provide inspection services themselves, as long as you are already a natural gas customer. Depending on the gas company, these services may be provided for free or for an additional fee.

    Rebate Programs

    Your gas company may be offering rebates for specified maintenance services. The eligible rebate amounts range from $100 – $400 and must be completed by a certified HVAC contractor.

    Certified HVAC Providers

    Review your local gas company’s website for any tools or guidelines to help find a trust certified HVAC contractors. Some companies have partnered with individual HVAC companies while others may provide a list of recommendation. This provides customers with the piece of mind, ensuring that the work is done well.

     

    “If you are looking to get your furnace ready for the winter, your local natural gas distributor is a good place to start to look for support.”

  • Elevating Ambition

    Elevating Ambition

    The US Federal Government’s Low-Income Home Energy Assistance Program – known by its homely acronym LIHEAP – has proved a durable safety net for vulnerable Americans struggling with energy bills since the early 1980s. But advocates worry efforts to cut natural gas out of the nation’s energy mix as a strategy to meet climate goals could cripple LIHEAP’s ability to combat energy poverty.

    In Washington, a town where hyper-partisan politics is the order of the day, there’s at least one thing Republicans and Democrats have been able to agree on for more than 40 years: The federal government has a legitimate role in helping vulnerable Americans who can’t afford to pay their energy bills.

    Since 1981, that consensus has sustained the Low-Income Home Energy Assistance Program (LIHEAP), which last year distributed more than $4 billion to help families avoid utility disconnections, weatherize their homes, and pay for emergency repairs or replacement of furnaces and air-conditioning systems.

    The program’s impact is significant in a country where one in four Americans say they have been forced to forego basic necessities in order to pay an energy bill. Consider these data points:

    LIHEAP’s bill payment assistance program restored power or avoided disconnection for more than 2.7 million American families in FY2023.

    In the same year, nearly 61,000 homes were weatherized using program funds, providing improvements in energy efficiency that lowered energy use and bills.

    In 2022, the program lifted 34,000 children and 48,000 older Americans out of poverty thanks to energy assistance.

    But even at current funding levels, LIHEAP today is able to serve only one in six families who meet the program’s income eligibility requirements, according to Katrina Metzler, executive director for the National Energy and Utility Affordability Coalition (NEUAC), the principal LIHEAP advocacy group.

    Although LIHEAP is one of the few federal programs that has seen small increases in funding in recent years, the expiration of pandemic-era emergency funding has put the program in a hole at a time when rising energy costs, extreme weather events and inflation are exacerbating energy insecurity.

    “What we’re seeing is a steady increase in applications and an overall decrease in funding available because those emergency resources have faded,” Metzler said. “The families we’re talking about regularly are making choices between medicine or food and paying their utility bill.”

    Even so, LIHEAP puts the U.S. well ahead of Canada, which lags other developed economies in low-income energy assistance efforts, according to Abhilash Kantamneni, director of action research for Efficiency Canada, which focuses on energy efficiency as a key to addressing energy affordability.

    “There’s a lot to learn from LIHEAP that Canada can do,” Kantamneni said. “Canada is one of the few (developed) countries that doesn’t have an official definition of energy poverty, and there is no energy assistance program at the national level to help low-income households struggling with energy bills.”

    Flexibility a key feature

    The key to LIHEAP’s effectiveness, say observers, is in the program’s flexibility. Federal funds are appropriated by Congress and distributed to the states, which work with local utilities and community action organizations to find the best ways to get energy assistance to those in need.

    In this way, the federal dollars can be combined with a variety of other funding sources – the states themselves, energy assistance programs operated by utilities and funded by donations from their own charitable foundations and customers, and nonprofit fuel funds – to amplify LIHEAP’s impact.

    “That’s a very mature role for the federal government to play in being able to elevate the ambition of existing state and local programs – and then providing them the long-term stability of funding so that then they can use it in smart ways to unlock the benefits for households,” Kantamneni said.

    LIHEAP funds can be applied to household energy bills regardless of the energy source, so some states include solar as an eligible weatherization option. States can also increase the impact of their LIHEAP dollars by combining them with money from a separate federal weatherization assistance program.

    There’s also flexibility in how states can apply LIHEAP funds. In addition to emergency payments, several states use LIHEAP to fund a Percentage of Income Payment Program (PIPP) that pays a percentage of a customer’s utility bills for a year while also working to reduce energy use through efficiency upgrades.

    Charlotte, N.C.-based Duke Energy offers a program for LIHEAP-eligible customers that provides a flat on-bill credit for 12 bill cycles while automatically pre-qualifying participants for its weatherization program, said Kevin Alexander, director of vulnerable customer strategy and agency for Duke Energy.

    “We’re trying to find ways to get customers into those programs to address the energy efficiency aspect of affordability but also help them today as well,” Alexander said, adding the utility has launched a new initiative in North Carolina to improve its ability to connect more customers with energy assistance programs.

    Similar bill assistance and on-bill credit programs are available in Canada, such as the Ontario Energy Board’s ratepayer-funded Low-Income Energy Assistance Program (LEAP) and the taxpayer-funded Ontario Electricity Support Program (OESP), said Harneet Panesar, chief operating officer for the OEB.

    The big difference, of course, is that Canada currently has no federal program to augment provincial energy affordability efforts. A new program launching in 2025 allocates $800 million to residential energy efficiency retrofits but doesn’t include bill assistance of any kind, Kantamneni said.

    “You can’t host enough bake sales at the local level to replace LIHEAP,” said NEUAC’s Metzler. “Four billion dollars is a lot of resources that our federal government infuses into our system to ensure that energy is affordable for everyone. Taking that away and expecting states or local agencies to pick up the burden is not a reasonable approach to ensuring access to energy in our country.”

    “It makes a big difference,” Alexander said. “LIHEAP represents the vast majority of funding that’s going to be available at the state and local level and it’s helping out a lot of those agencies who are really trying to support customers in need.”

    ‘Party doesn’t matter’

    Enacted during Ronald Reagan’s first term in response to the energy crisis, recession and rampant inflation of the late 1970s, LIHEAP has survived through five decades, seven administrations, budget cuts and a pandemic. Observers credit the bipartisan support advocates have built over the years.

    “I think one of the reasons the program has survived when a lot of programs have not is because it’s bipartisan,” said NEUAC’s Metzler. “No matter which side of the aisle in Congress you sit on, you’re able to see the benefit to your district and the constituents in your district of programs like these that help maintain family and community stability and provide for health and safety concerns in the community.”

    NEUAC’s membership hints at the breadth and diversity of partners involved in supporting LIHEAP: Utility trade associations and utilities themselves, groups representing delivered fuels like propane, grassroots nonprofits, faith-based charities and state and local agencies that manage energy affordability programs.

    In addition to organizing LIHEAP Action Day, its flagship advocacy event that brings hundreds of supporters to Capitol Hill every year, NEUAC also plays a key role in making sure the coalition’s 300-plus members are working effectively together to benefit the maximum number of households possible.

    One of NEUAC’s core functions is educating member organizations and other stakeholders to ensure they know how to connect customers in need with LIHEAP resources. With funding help from the American Gas Association (AGA), NEUAC created an interactive map that makes information easily accessible.

    With a full-time staff of only two, NEUAC relies on its utility partners to raise awareness of LIHEAP. Duke Energy and its Piedmont Natural Gas unit, for example, communicate to their customers about LIHEAP and their own programs, Share the Light and Share the Warmth, through their websites, bill inserts, community events and other platforms.

    Brian Caudill, managing director of government affairs and public policy for the AGA, credits the strength of the coalition for LIHEAP’s success in garnering “plus-ups” – funding increases – over the last few years even as appropriations bills containing the funding were being routinely cut.

    “As long as we have the advocacy in place and we can be able to make the message resonate with our policymakers and show the benefits of the program nationwide, then the program will be increasingly better funded,” Caudill said. “Party doesn’t matter, and party surely doesn’t matter to somebody who’s without heat in the middle of January.”

    “…it’s imperative that we address the affordability needs of those families when we talk about forced electrification.”

    Transition’s looming challenge

    Despite the program’s success, LIHEAP advocates worry that energy security could become unattainable for even more Americans if the transition to a low emission energy economy pushes policymakers to double down on electrification and take affordable natural gas out of the nation’s energy mix.

    Natural gas provides heat for 60% of American homes, and households that use natural gas save an estimated $1,132 per year compared to an all-electric home, according to the AGA. Losing that price advantage and the financial burden of switching from natural gas to electric concerns NEUAC’s Metzler.

    “I don’t have expertise about electrification, but what I know about is the impact that we can discern that it would have on households,” Metzler said. “To that end, it’s imperative that we address the affordability needs of those families when we talk about forced electrification.”

    “Natural gas provides heat for 60% of American homes, and households that use natural gas save an estimated $1,132 per year compared to an all-electric home, according to the AGA.”

    The AGA’s Caudill points out greenhouse gas emissions from the natural gas distribution system have declined 70% since 1990 and continue to drop as the industry decarbonizes through investments in infrastructure, lower-carbon fuels such as renewable natural gas and hydrogen, and stepped-up energy efficiency programs.

    “Why would we eliminate the most cost-effective heat for people in need, especially considering the indispensable role natural gas can play in reducing greenhouse gas emissions?”
    – Brian Caudill, managing director of government affairs and public policy for the AGA

    “Why would we eliminate the most cost-effective heat for people in need, especially considering the indispensable role natural gas can play in reducing economywide greenhouse gas emissions?” Caudill asks. “These are some of the things that we are constantly noodling on and trying to address on the Hill.”

    Efficiency Canada’s Kantamneni suggests the cost implications of total electrification highlight the need to ensure a community’s lowest-income residents are not also living in the least energy-efficient homes – an energy affordability goal embedded in climate policies in the United Kingdom, he says.

    LIHEAP advocates would prefer to stay in their lane and focus on the health-and-safety message that has won hearts and minds on Capitol Hill since 1981. But as pressure to meet climate goals ratchets up, they and America’s most vulnerable clearly have a huge stake in the debate over how that transition unfolds.

     

    David Coburn is a strategic thinker, writer, media relations expert and communications consultant leveraging 30-plus years of print journalism and agency public relations experience.

  • An interview with Roger Dall’Antonia, President and CEO, FortisBC

    Roger Dall’Antonia, President and CEO at FortisBC

    Thank you for taking the time to meet with us. Can you tell us a bit about the career path to your current role as President and CEO of Fortis BC?

    Having begun my career in the energy industry in 1993 with Westcoast Energy Inc., where I worked in corporate and project finance, I joined FortisBC in 2004. I have had the opportunity to hold several leadership roles throughout the organization, including executive oversight of customer service and technology, regulatory affairs, energy solutions and demand side management, strategic planning and corporate development, finance and treasury.

    Throughout my time with FortisBC, and particularly now as president and CEO, I have continued our customer-focused approach to delivering an affordable and sustainable energy future, with particular focus on the safety and reliability of our energy delivery system, while advancing a lower-carbon energy future and prioritizing our work with Indigenous communities.

    B.C. is in many ways at the centre of Canada’s conversation on natural gas – as a significant domestic producer and user, and as the leading exit point for what could be an enormous export industry. How do you see FortisBC playing in this very exciting time for the industry, the province, and the country?

    As a critical energy provider in B.C., we believe FortisBC will play a critical role in helping lead the lower-carbon energy transition. Our primary focus is to ensure we provide our customers and communities with safe, reliable and affordable energy, including natural gas, electricity, Renewable Natural Gas[1] (RNG) and other lower-carbon energy sources.[2] But this doesn’t mean our industry or FortisBC is taking a business-as-usual approach. There are significant challenges and opportunities in the energy transition, and we see the value in both the electricity and gas systems as the platforms to lead to a lower-carbon future. We see a key opportunity in integrating the electric and gas systems, to work together to better meet energy needs, in particular peak capacity challenges, and support emissions reductions. There is also a significant emissions reduction opportunity through greater demand side management to reduce energy usage, while adopting lower-carbon energy to meet that reduced throughput. That lower-carbon energy will not just be renewable electricity, but also renewable gases such as RNG.

    There is also an opportunity to consider how our systems can decarbonize other sectors. In many jurisdictions, transportation is the single largest sector for emissions. Decarbonizing in this sector includes expanding the adoption of electric vehicles, as well as utilizing liquified natural gas (LNG) and renewable gases in heavy duty fleet applications and marine fuelling. As our most recent Sustainability Report shows, during 2023 we helped customers avoid greenhouse gas emissions by using LNG in marine fuelling, displacing diesel with compressed natural gas in the transportation sector and supplying RNG.

    We were the first company in the world to offer a truck-to-ship onboard LNG fuelling system for our customers. In 2023, we had just over 1,700 LNG ship bunkering events with local ferry operators, and the same year reached a multi-year milestone of more than 7,000 LNG bunkering events. Our marine customers avoided a total of 40,200 tonnes of carbon dioxide equivalent in 2023 by using LNG for marine fuelling instead of traditional bunker fuel.[3]

    You’ve just had a pretty fascinating election. What do you see happening in British Columbia’s gas policy and regulatory space

    FortisBC has been serving the province of B.C. for well over 100 years, and we have almost 1.3 million gas and electricity customers across 135 communities and 58 indigenous communities. As a community-facing provider of critical services, we strive to maintain proactive relationships with all levels of government, as ultimately we are serving the same constituents, which are the people of B.C.

    The recent re-election of Premier Eby and his government can be expected to provide continuity to both environmental and energy policy. We remain committed to working with the province to advance the lower-carbon energy transition and provincial climate goals. In recent years we have worked to advance provincial policy objectives as outlined in the CleanBC and CleanBC Roadmap to 2030 plans as well as B.C.’s energy action framework. We are, for instance, expanding our renewable and low-carbon energy portfolio, exploring abated gas opportunities to procure natural gas with lower lifecycle GHG emissions, encouraging energy efficiency, customer energy savings and GHG emissions reductions in our conservation and energy management plans, and piloting and expanding deep energy retrofit programs and dual fuel heating solutions. We believe our expertise running both electric and gaseous energy systems gives us the needed insight to help develop a diversified pathway that supports a more resilient and affordable energy transition.

    FortisBC has been actively advancing its work related to RNG and hydrogen. What role do you see these gaseous fuels playing in the near and long term?

    Our gas system plays an important role in helping to meet the energy needs of British Columbians and we believe it will continue to do so in the years to come. With its ability to store and quickly dispatch large volumes of energy, the gas system is especially important for periods of cold weather. For instance, earlier this year FortisBC’s gas system delivered approximately double the energy B.C.’s electricity systems provided on Friday, January 12, 2024, when the province was at its coldest, with electrical providers delivering 11,300 megawatts (MW) compared to FortisBC’s gas system delivering over 21,700 MW at the highest point of demand.

    “FortisBC’s gas system delivered approximately double the energy B.C.’s electricity systems.”

    We believe our gas system plays an important role in helping to meet the energy needs of British Columbians, and we recognize the need to move to lower-carbon energy options. In 2010, we started the first voluntary RNG program in North America and have since worked with farms, landfills, green energy companies and municipalities to supply us with RNG.

    We’re continuing to expand the supply of RNG we acquire for our customers, by looking to partner with more organizations and governments. An RNG facility under construction at the Vancouver Landfill will be our largest RNG project in B.C. In 2023, we acquired 2.8 petajoules (PJ) of RNG for our customers, enough energy to run about 27,500 B.C. households for a year, and we have approved contracts to acquire 18 PJ over the next few years. Our supply of RNG helped customers avoid nearly 265,000 tonnes of carbon dioxide equivalent in 2023—equivalent to taking more than 57,000 gasoline-powered cars off the road.[4]

    We’re also looking at ways to advance other renewable and low-carbon gases, such as hydrogen. We’re using provincial funding to research delivering hydrogen through the gas system in B.C., investing in innovation to support the potential for hydrogen production and use and advancing multiple hydrogen-related projects. This year, for instance, we announced our membership in a collaboration formed by a Memorandum of Understanding between ourselves and Hazer Group Ltd. to develop a hydrogen production pilot project in British Columbia. If the pilot is scaled up, it would be expected to produce approximately 2,500 tonnes of hydrogen per year—roughly 300,000 gigajoules of gas.

    On the electric side, we recently announced a Request for Expression of Interest for up to 1,100 gigawatt hours of energy to serve the growing demand in B.C.’s Southern Interior region.

    What advice do you have for someone just joining the gas delivery industry?

    Never lose sight of the fact that as a member of this industry you’re at the centre of a very large and very important undertaking—that of helping solve the energy trilemma. By that I mean keeping the three elements of that trilemma—reliability, sustainability and affordability—in balance. In the gas delivery sector, this will mean supporting a diverse energy mix, and continued use of the existing gas system, with lower-carbon fuels like RNG and, potentially in the future, hydrogen.

     

    1Renewable Natural Gas (also called RNG or biomethane) is produced in a different manner than conventional natural gas. It is derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. The biogas is captured and cleaned to create RNG. When RNG is added to North America’s natural gas system, it mixes with conventional natural gas. This means we’re unable to direct RNG to a specific customer. But the more RNG is added to the gas system, the less conventional natural gas is needed, thereby reducing the use of fossil fuels and overall greenhouse gas emissions.

    2FortisBC uses the term renewable and low-carbon gas to refer collectively to the low-carbon gases or fuels that the utility can acquire under the Greenhouse Gas Reduction (Clean Energy) Regulation, which are: Renewable Natural Gas (also called RNG or biomethane), hydrogen, synthesis gas (from wood waste) and lignin. FortisBC’s renewable and low-carbon gas portfolio currently includes only Renewable Natural Gas. Other gases and fuels may be added to the program over time. Depending on their source, all of these gases have differing levels of lifecycle carbon intensity. However, all of these gases are low carbon when compared to the lifecycle carbon intensity of conventional natural gas. The current burner tip emission factor of RNG is 0.27 grams of carbon dioxide equivalent per megajoule of energy (gCO2e/MJ) and the current renewable and low-carbon gas portfolio lifecycle emissions for stationary combustion are -22 gCO2e/MJ. This is below B.C.’s low carbon threshold for lifecycle carbon intensity of 30.8 gCO2e/MJ as set out in the 2024 Greenhouse Gas Reduction Regulation amendments.

    3Source: 2023 Sustainability Report, page 21

    4Source: 2023 Sustainability Report, page 19. Calculated using the Natural Resources Canada greenhouse gas equivalencies calculator.

  • Methane Management

    Methane Management

    Methane is by far the largest component of natural gas, which provides nearly 40 per cent of Canada’s energy supply. So clearly, it behooves Canadian natural gas companies to understand and minimize methane emissions while delivering this key energy source to customers.

    Sources of methane emissions

    Methane emissions occur in all segments of the natural gas industry, from production through processing and transmission to distribution. They result primarily from normal operations, routine maintenance, fugitive leaks, and system upsets.

    Sources vary. As gas moves through the system segments, emissions occur through intentional venting and unintentional leaks. Venting can occur through equipment design or operational practices like the continuous bleed of gas from pneumatic devices which control gas flows, levels, temperatures, and pressures in the equipment, or venting from well completions during production. In addition to vented emissions, methane losses can occur from leaks—often termed ‘fugitive emissions’—in all parts of the infrastructure, from connections between pipes and vessels to valves and equipment.

    For Canada’s natural gas delivery industry, “the majority of methane emissions are attributable to venting and fugitive emissions,” explains Christine Cinnamon, Executive Director, Canadian Energy Partnership for Environmental Innovation (CEPEI), an organization whose focus is to collect data to support regulatory compliance and tracking emerging environmental issues with a view to being ready to address them when they become matters of regulation or of public attention. “Vented emission sources include intentional or designed releases of natural gas for operational purposes, such as pipeline and station blowdowns, and emissions from pneumatic devices that use natural gas as a driver, as well as things like compressor seal gas and unit blowdown and isolation valve leakage. Fugitive emissions include all unintentional releases of natural gas, including above- and below-ground leaks”, she adds.

    Cinnamon offers some comparisons to place these items into perspective: Fugitive and combustion-related methane emissions from TD&S (transmission, distribution and storage) operations form a relatively small percentage—5.0%–of the overall oil and gas sector’s methane emissions, and an even smaller percentage—2.1%–of Canada’s overall methane emissions (these figures based on the 2022 National Inventory Report and CEPEI inventory data).

    Although TD&S methane emissions are a small contribution to the overall emissions from the whole gas industry, companies in the delivery business are actively engaged in understanding, managing, and reducing methane emissions, and have been for decades. Recently, the Federal government set a target of a 75% reduction in oil and gas sector methane emissions from 2012 by 2030. Industry is still trying to fathom the scope and implications of this target, as the whole sector continues its ongoing methane management efforts.

    Managing methane emissions

    “Efforts to date to reduce methane emissions in TD&S have included the total phase out of cast iron mains in Canada, the replacement of other aging pipe, pneumatic equipment upgrades, regular inspection and damage prevention programs,” says Cinnamon. It’s an ongoing process. “The sector continues to explore further opportunities that involve things like capture and re-use of vented gas and enhanced Leak Detection and Repair programs, including advanced monitoring technology.”

    Organizations such as CEPEI play a major role in managing these methane emissions.

    “CEPEI has been providing national downstream natural gas sector greenhouse gas, including methane, inventories and conducting underpinning field programs for more than 20 years,” says Cinnamon. “These studies improve emissions factors and the understanding of the nature of venting and leaks to identify ‘low hanging fruit’ opportunities to reduce methane.” Moreover, she says, organizations like CEPEI provide opportunities to come together as a sector in order to define best practices and share learnings so that the sector benefits as a whole from the work being done by individual companies and utilities. Additionally, this feeds into how companies make decisions on how to best allocate resources, as well as inform the government on what is being done and how regulations might impact those efforts.

    It’s crucial that efforts like these be continued says Cinnamon.

    “Through numerous field programs and other studies being undertaken by CEPEI, the sector continues to support improved quantification of emissions factors and their sources. Due to the very large numbers of individual equipment installations that exist in the sector, these studies provide valuable information that assists in improving emissions estimates and the continued reduction of emissions.” She says, for example, that current Leak Detection and Repair programs are achieving positive results and can offer insights for future considerations. Companies are reporting that the number of leaks and overall size of leaks have reduced year-over-year since implementing the program. The same can be said about ‘Call Before You Dig’ and other damage prevention programs. Damage events are a significant contributor to methane emissions from the sector but, with damage prevention programs, these events can be avoided.

    But where emission sources or releases are temporary, intermittent, low-volume, diffuse, unplanned, or required for safety reasons, mitigation continues to be a challenge. Adding to the challenge is that costs of methane mitigation by the TD&S companies are already several orders of magnitude higher than the government estimate of $17/tCO2e (tonnes of CO2 equivalent), with estimates indicating the costs are upwards of $285/tCO2e.

    What is still to come

    Canada’s objectives under its 2030 Emissions Reduction Plan include reducing methane emissions as a key part of reaching the overall emissions reduction target of 40–45% below 2005 levels by 2030 and net-zero emissions by 2050. Achieving these goals will require current technology to be more broadly applied than at present, along with developing new solutions. Achieving deeper reductions of at least 75% by 2030 will require actions that go significantly beyond the lower-cost opportunities. For instance, this means a greater focus on the new and enhanced technologies that have been developed, including some made in Canada, that reduce methane emissions through electrification, fuel switching, efficiency improvement, and mitigating fugitive emissions.

     

    “Canada’s gas industry is continuously improving its performance on methane management – while ensuring Canadians have access to the affordable, reliable natural gas energy they want.”

     

    To help deliver more reductions, the CGA and CEPEI formed the Canadian Methane Management Coalition. Announced in November 2023, the Coalition is working to profile and support advanced methane measurement, detection, mitigation, and capture solutions designed to be deployed at scale in Canada from across the value chain. It will include sharing information and best practices to deliver the next wave of methane emission reductions. Importantly, it will also build on the work of Canada’s first emissions testing centre, the NGIF Emissions Testing Centre hosted by Tourmaline, Canada’s largest gas producer, at one of their production sites in Alberta. The centre is an industry-led initiative with government and academic support to help test new technologies and expedite their commercialization.

    Canada’s gas industry is continuously improving its performance on methane management – while ensuring Canadians have access to the affordable, reliable natural gas energy they want. As we are called on to do more to meet new government emission targets, maintaining that balance is an even greater challenge.

    Graham Chandler spent a decade in energy corporate finance and marketing management. As a full-time freelance writer, he has specialized in energy topics for the past 20 years.

  • CGA’s 2023 Young Business Leader of the Year

    CGA’s 2023 Young Business Leader of the Year

    Imad Khaled, Director of Engineering and Construction Services at Apex Utilities Inc.

    The Canadian Gas Association has had a long-standing awards program to recognize its members’ leadership and commitment to safety and innovation. In 2022, CGA enhanced this program to honour its members’ work in areas such as customer care, and environmental stewardship.

    The Young Business Leader of the Year Award recognizes emerging leaders (40 years of age and under) in the gaseous energy industry who have demonstrated their potential to guide/pilot the gaseous energy industry of the future from a business, environmental, regulatory and/or public service perspective. We interviewed the five recipients of this award to get their perspectives on working in the natural gas industry and what the future holds for the sector.

    The recipient for CGA’s 2023 Young Business Leader of the Year Award is Imad Khaled, Director of Engineering & Construction Services at Apex Utilities Inc.

    Imad Khaled holds a Bachelor of Science degree in Mechanical Engineering from the American University of Beirut and a Master of Science degree in Mechanical Engineering from the University of Alberta in Alberta.

    He has been working in the Natural Gas Utility industry since 2012 and has worked in different leadership roles between Engineering, Operations, Construction, Research & Innovation, and Operational Audit.

    Imad is the Director of Engineering and Construction Services at Apex Utilities and overlooks the Energy Innovation team which is developing decarbonization strategies and sustainable energy solutions to support the evolving energy transition.

    Imad lives in Edmonton, Alberta. He enjoys being active whether it is running or biking, taking advantage of the river valley in Edmonton or the mountains between Alberta and BC. If not working or on a trail, Imad will be on a plane with his wife traveling to explore new places around the world.

    What motivated you to join the energy industry?

    While pursuing my bachelor’s degree in engineering, I was fortunate enough to do my co-op terms in different parts of the world; gaining exposure to a variety of industries and valuable experience in diverse domains. I moved to Alberta to do my Master of Science in Mechanical Engineering where I got more exposure to future looking industries. It was fascinating to see the research and work being done by the energy industry to advance existing technologies, lower emissions, and provide better solutions that would meaningfully improve our societies. As I finished university, it was exciting to join an industry that is agile, innovative, and directly impacts the people around me.

    In your opinion, how do you see the role of natural gas infrastructure changing in the next 30 years?

    For decades, the natural gas industry has provided safe, reliable, and affordable energy to Canadians through a vast network of infrastructure. This network will continue to grow and play a key role in providing Canadians with the energy they need especially in the cold climate we have. While the gas in the pipe might evolve in the future to contain renewable natural gas and hydrogen, utilizing existing infrastructure will be instrumental to ensure affordable solutions are provided to Canadians and will be pivotal in advancing the economy on the local, national, and international stages.

    How do you think the Canadian energy industry can contribute to domestic and global energy security?

    Canada is the sixth largest energy producer in the world with exports reaching more than 100 countries globally. As the energy demand continues to grow globally, Canada can continue to play a key role in meeting the domestic and global energy needs. Backed by enabling policy, the innovative Canadian energy sector is fully equipped to ensure the growing global energy demand is met with responsibly produced energy that can help to reduce the global emissions.

    What advice would you give to young professionals today who are interested in joining the energy industry?

    Follow your passion. This is one of the most exciting times to join the energy industry. The world is evolving with security of energy supply and emission reductions being paramount. This offers great opportunities to be part of an industry that has a track record of being innovative and providing cutting edge technology to meet the challenges that our societies face. The energy industry has all the elements to fulfill your passion about making the world a better place while ensuring the local communities and Canada continue to prosper.

  • EWI

    EWI works with a variety of industries to advance industrial technologies and processes through world-class engineering solutions.

    For the energy sector in particular, EWI offers deep expertise in material evaluation, fabrication technologies, and structural integrity and corrosion to solve the industry’s ever-increasing reliability, regulatory, and efficiency needs. Whether your company operates in the traditional oil and gas sphere or is invested in renewable power development, you face critical decisions to select the right materials and optimize your fitness-for-service strategy. EWI’s energy materials testing laboratory and broad experience in fracture mechanics and weld process knowledge help energy companies stay competitive, minimize risk, and lead the industry into the future.

    Where is your company located?

    Headquartered in Columbus, Ohio, with an additional R&D facility in Buffalo, NY.

    How many employees do you have?

    150 employees

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

    EWI is committed to helping the energy industry prepare for hydrogen/hydrogen-blended pipelines and CCUS pipeline systems.

    What opportunities and challenges do your company face?

    Our expertise in materials engineering, welding, inspection, and structural integrity positions our organization well to support the energy industry. The challenges come with being able to adopt and evolve our laboratory infrastructure fast enough to support every changing demand of the midstream pipe market.

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

    Natural gas will continue to play a dominant role. Whether that is through directly providing fuel for heating and power generation or through creating hydrogen through SMR, natural gas will be an essential part of the energy mix.

  • The Honourable Stephen Lecce, Ontario Minister of Energy and Electrification’s keynote address at CGA’s Energy Nexus and Annual Technical Conference 2024

    The Honourable Stephen Lecce, Ontario Minister of Energy and Electrification’s keynote address at CGA’s Energy Nexus and Annual Technical Conference 2024

    At CGA’s flagship event, the Energy Nexus and Annual Technical Conference in October, Ontario’s Minister of Energy and Electrification, the honourable Stephen Lecce, delivered a keynote address emphasizing the critical role natural gas plays in meeting the province’s energy needs. Minister Lecce highlighted how natural gas ensures reliability and affordability for Ontarians, whether it is heating homes during cold winters, supporting food security through agricultural operations, or contributing to electricity generation. His remarks underscored the importance of natural gas as a cornerstone of Ontario’s energy mix, vital for maintaining economic stability and enhancing the quality of life for Canadians.

    Watch full speech:

    Some excerpts from the speech:

    ….We understand the value of natural gas and we also recognize that there was a decision made some months ago, the Ontario Energy Board made a determination that essentially asked families to pay, residential customers or small businesses, to pay 100% of costs of new natural gas connections upfront, something that we have previously paid over 40 years and the government acted swiftly with the overwhelming commitments to not impose thousands of dollars, like we’re talking about $44,000 increase for your child that’s trying to purchase a home…,it’s our problem as a country if we stand idle and allow these sorts of stealth taxes to be imposed on homes in Ontario for our kids and new Canadians and anyone who aspires for home ownership.

    …. And the overarching priority for our government is affordability, keeping in mind in 2018….we were elected on a mandate of affordability. This is a big priority for the families we serve, for industry and small businesses, and it’s a priority for our premier and for our government today.

    So, we are proud of the work you’re doing, we’re proud of the workforce that actually delivers this to our families and to our business, and I just want to reaffirm to you our commitment to work with this sector, as we continue to deliver affordable, reliable energy for the people of Ontario.