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B.C. oil and gas producers to cut 3.5 million tonnes of emissions

$40.4 million in provincial funding supports carbon sequestration, waste heat recovery, fuel switching, methane capture
Matt Preprost
gundy-plant tourmaline
13 projects will receive $40.4 million from the CleanBC Industry Fund, funded by carbon tax revenues, to help capture and sequester carbon and methane, recover waste heat, and electrify operations throughout Northeast B.C.

B.C. oil and gas producers will cut another 3.5 million tonnes of carbon emissions by 2031 through the latest round of industry funding from the province.

The province said Monday that 13 projects will receive $40.4 million from the CleanBC Industry Fund, funded by carbon tax revenues, to help capture and sequester carbon and methane, recover waste heat, and electrify operations throughout Northeast B.C.

Here are the projects being funded:

  • ARC Resources: $13.66 million to connect the Dawson Creek Processing Plant to the BC Hydro grid, replacing four onsite natural gas turbine generators that will be retired. The province says one million tonnes of emissions will be reduced through 2031.

  • NorthRiver Midstream: $10 million to install a carbon and acid gas compression and injection system at the McMahon gas plant in Taylor to permanently store CO2 rich acid gas in a subsurface reservoir. The province says 1.09 million tonnes of emissions will be reduced through 2031.

  • NorthRiver Midstream: $7.5 million to connect the Dawson Processing Facility to the BC Hydro electrical grid to replace onsite natural gas generation. The province says 690,000 tonnes of emissions will be reduced through 2031.

  • Canadian Natural Resources: $2.07 million to replace 254 wellsite pneumatic methanol pumps with electric pumps operated by solar energy. The province says 298,900 tonnes of emissions will be reduced through 2031.

  • Canlin Energy: $1.57 million to replace four natural gas compressor drivers and associated equipment with electric alternatives at four compressor stations located near Fort St. John and Fort Nelson. The province says 90,500 tonnes of emissions will be reduced through 2031.

  • Tourmaline Oil: $1.51 million to connect vented gas capture units on 35 compressors at various processing and compressing stations, recovering natural gas currently vented to the atmosphere. The province says 152,000 tonnes of emissions will be reduced through 2031.

  • Tourmaline Oil: $1.03 million to replace 222 pneumatic drive actuators with electric drive equivalents, eliminating vented natural gas to the atmosphere. The province says 44,500 tonnes of emissions will be reduced through 2031.

  • NorthRiver Midstream: $1 million to install a waste heat recovery system at their Highway Processing Facility to reduce natural gas use in the heat medium system. The province says 72,000 tonnes of emissions will be reduced through 2031.

  • ConocoPhillips: $764,183 to capture and recover waste gas that was previously vented and flared during the completion flowback processes at 55 wells annually in Northeast B.C. by utilizing pressurized gas storage and compression technology. The province says 70,200 tonnes of emissions will be reduced through 2031.

  • Storm Resources: $652,500 to install a heat exchanger to recover waste heat energy from compressor exhaust at the Nig Creek Gas plant. The recovered heat will be used to pre-heat the hot oil system and reduce natural gas combustion. The province says 12,200 tonnes of emissions will be reduced through 2031.

  • Petronas Energy: $482,320 to install a vapour recovery unit at a gas processing plant in the Fort St. John area to capture natural gas currently flared and vented to atmosphere and utilize it in the production process. The province says 11,500 tonnes of emissions will be reduced through 2031.

  • Canlin Energy: $119,186 to replace 21 wellsite pneumatic methanol pumps with electric pumps operated by solar energy near Fort St. John. The province says 12,500 tonnes of emissions will be reduced through 2031.

  • Crew Energy: $103,308 to utilize a higher efficiency compressor to convert an existing natural gas-fired model at their Wilder Sweet Gas Plant, reducing natural gas use. The province says 2,500 tonnes of emissions will be reduced through 2031.

Elsewhere in B.C., pulp mill efficiency projects in Port Mellon, Castlegar, Nanaimo, and Skookumchuck are also being funded. The Newcrest Red Chris Mine in Northwest B.C. is also receiving funding to connect to the BC Hydro grid and electrify its operations.

Combined, the province said the 25 projects being funded will cut six million tonnes of carbon dioxide equivalent, equal to taking 130,000 cars off the road each year for approximately 10 years.

The province said the project investments amount to more than $166 million, including more than $70 million in carbon tax revenues paid by industry through CleanBC, with industry proponents also contributing $74.5 million. An additional $22 million of project funding is coming from sources such as BC Hydro, FortisBC, and other government programs, the province said.

"These projects demonstrate our government's commitment to working with industry to invest in cleaner technologies and to reduce emissions across all sectors," Energy Minister Bruce Ralston said in a statement.

Email Managing Editor Matt Preprost at [email protected].