TC Energy Corp. is set to develop a new carbon transportation and sequestration system (CCUS) jointly with Pembina Pipeline Corp., which the company said will become the backbone of the Alberta carbon capture industry.
The announcement made June 17 comes on the heels of the formally announced Oil Sands Pathways to Net Zero initiative by a group of Canadian oil and gas producers, which analysts with Tudor, Pickering, Holt & Co. (TPH) said screens favorably for the project as support from upstream customers will be critical for it to ultimately cross the finish line.
“We view this announcement constructively for both parties as it provides a critical industry solution for helping achieve emission reduction targets, while also potentially adding green infrastructure to the growth backlogs,” TPH analysts wrote in a research note on June 18.
On June 9, Canadian oil sands producers formed an alliance targeting net-zero greenhouse gas emissions from their operations by 2050. The alliance includes Canadian Natural Resources Ltd., Cenovus Energy Inc., Imperial Oil Ltd., MEG Energy Corp. and Suncor Energy Inc. working together with federal and Alberta governments.
Commenting on the proposed carbon capture project on June 17, Alberta’s Minister of Energy Sonya Savage said: “Our province’s energy industry is vital to achieving Canada’s GHG (greenhouse gas) reduction goals and Alberta companies are global leaders in reducing emissions. By working together to bring forward world-class solutions, innovative companies like Pembina and TC Energy are leading the way to our lower-carbon future.”
Together, TC Energy and Pembina plan to jointly develop a CCUS system, named the Alberta Carbon Grid, capable of handling more than 20 million tonnes of CO₂ annually. The system will connect the Fort McMurray region, the Alberta Industrial Heartland and the Drayton Valley region to key sequestration locations and delivery points across the province, and serving multiple industries.
According to the companies, the development of the Alberta Carbon Grid will include redeployment, retrofits using proven technology, recapitalization and optimization of surplus capacity across our collective pipeline systems, including, subject to closing of the transaction, through Pembina’s proposed acquisition of Inter Pipeline Ltd.
“Industry players collaborating to leverage our existing energy infrastructure and expertise to support meaningful emission reductions and reduce our carbon footprint is a great example of how we can secure meaningful new investment opportunities, serve current and future customers and achieve operational excellence while continuing to safely and responsibly deliver the energy people need,” added TC Energy CEO François Poirier.
The first phase of the Alberta Carbon Grid project is expected to enter service in 2025 with full in-service to follow in 2027.
Recommended Reading
Lake Charles LNG Selects Technip Energies, KBR for Export Terminal
2024-09-20 - Lake Charles LNG has selected KTJV, the joint venture between Technip Energies and KBR, for the engineering, procurement, fabrication and construction of an LNG export terminal project on the Gulf Coast.
Exxon Awards JGC, Technip Energies LNG FEED Contract
2024-09-26 - Technip Energies said Rovuma LNG, located in Mozambique, is expected to have a total production capacity of 18 million tonnes per annum.
Poten: North American LNG Projects to Double Capacity by 2027
2024-09-27 - Nine North American LNG export projects under construction will add an estimated 98.6 mtpa of capacity by the end of 2027, with 6 of them located in the U.S., according to Poten & Partners.
New Fortress’ Fast LNG Completes Third Cargo Load
2024-10-28 - The Fast LNG unit is producing at or above its nameplate capacity of 1.4 million tonnes per annum, New Fortress Energy said.
US LNG Export Market Share Reaches 21%, Despite Biden Pause
2024-09-09 - Despite the Biden administration’s pause on LNG export facilities, the U.S. took the spot as global LNG exporter in 2023, overtaking Australia, Qatar and Russia, according to the International Gas Union.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.