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B.C. expects doubling of natural gas revenues with startup of LNG Canada

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LNG Canada CEO Jason Klein. Photo courtesy LNG Canada

From the Canadian Energy Centre

By Deborah Jaremko

Royalties help pay for public services like health care, hospitals, education and schools

As Canada’s first LNG export terminal prepares for start-up, British Columbia is preparing for an influx of new revenues that will help fund government programs.  

With the LNG Canada project online – expected by mid-2025 – the province expects proceeds from natural gas development will more than double.  

The anticipated production of LNG by the middle of this decade boosts the province’s financial outlook, the government said in its Budget 2024 

For LNG Canada CEO Jason Klein, the coming start-up is “the launch of an entirely new Canadian industry.”  

It will enable Canada’s first large-scale exports of natural gas to somewhere other than the United States.  

LNG Canada site construction activities, Kitimat, June 2023. Photo courtesy LNG Canada

Shipments will primarily go to Asia, where demand is expected to increase by more than 50 per cent over the next three decades, according to the U.S. Energy Information Administration.  

While it’s a little over one year before the first LNG carrier will set sail through the Douglas Channel to the ocean, Klein noted the benefits are already being felt.  

“More than 30,000 Canadians have worked on our project to date, with almost 9,000 Canadians employed at our Kitimat site in January this year alone,” he said 

“The cumulative value of our project’s contracts and subcontracts to local, Indigenous and other businesses in B.C. has already exceeded $4.7 billion and includes more than $3.8 billion to Indigenous-owned and local area businesses.” 

Natural gas royalties paid to the province, which help pay for public services and facilities such as health care, hospitals, education and schools, are expected to rise substantially. 

This year, the B.C. government expects $684 million in natural gas royalties, according to its latest annual budget. In 2027, once LNG Canada is operational, this is forecast to surge to $1.4 billion.  

Workers at the LNG Canada project site. Photo courtesy LNG Canada

Globally, LNG is playing an increasingly important role in energy supply, with demand set to continue growing beyond 2040, according to Shell’s latest industry outlook.  

China is likely to dominate rising LNG demand as the country’s industries look to cut carbon emissions by switching from coal to gas.  

Once operational, LNG Canada will demonstrate the low-emissions advantage of Canada’s LNG supply.  

“We’ve designed a project with the lowest carbon intensity of any large-scale LNG export facility operating today,” Klein said.  

“[It will have] emissions that are 35 per cent lower than the world’s best performing facilities and 60 per cent lower than the global weighted average.” 

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Alberta

Energy projects occupy less than three per cent of Alberta’s oil sands region, report says

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From the Canadian Energy Centre

By Will Gibson

‘Much of the habitat across the region is in good condition’

The footprint of energy development continues to occupy less than three per cent of Alberta’s oil sands region, according to a report by the Alberta Biodiversity Monitoring Institute (ABMI).

As of 2021, energy projects impacted just 2.6 per cent of the oil sands region, which encompasses about 142,000 square kilometers of boreal forest in northern Alberta, an area nearly the size of Montana.

“There’s a mistaken perception that the oil sands region is one big strip mine and that’s simply not the case,” said David Roberts, director of the institute’s science centre.

“The energy footprint is very small in total area once you zoom out to the boreal forest surrounding this development.”

Image courtesy Alberta Biodiversity Monitoring Institute

Between 2000 and 2021, the total human footprint in the oil sands region (including energy, agriculture, forestry and municipal uses) increased from 12.0 to 16.5 per cent.

At the same time, energy footprint increased from 1.4 to 2.6 per cent – all while oil sands production surged from 667,000 to 3.3 million barrels per day, according to the Alberta Energy Regulator.

The ABMI’s report is based on data from 328 monitoring sites across the Athabasca, Cold Lake and Peace River oil sands regions. Much of the region’s oil and gas development is concentrated in a 4,800-square-kilometre zone north of Fort McMurray.

“In general, the effects of energy footprint on habitat suitability at the regional scale were small…for most species because energy footprint occupies a small total area in the oil sands region,” the report says.

Researchers recorded species that were present and measured a variety of habitat characteristics.

Image courtesy Alberta Biodiversity Monitoring Institute

The status and trend of human footprint and habitat were monitored using fine-resolution imagery, light detection and ranging data as well as satellite images.

This data was used to identify relationships between human land use, habitat and population of species.

The report found that as of 2021, about 95 per cent of native aquatic and wetland habitat in the region was undisturbed while about 77 per cent of terrestrial habitat was undisturbed.

Researchers measured the intactness of the region’s 719 plant, insect and animal species at 87 per cent, which the report states “means much of the habitat across the region is in good condition.”

While the overall picture is positive, Roberts said the report highlights the need for ongoing attention to vegetation regeneration on seismic lines along with the management of impacts to species such as Woodland Caribou.

Researchers with the Alberta Biodiversity Monitoring Institute in the oil sands region of northern Alberta. Photo courtesy Alberta Biodiversity Monitoring Institute

The ABMI has partnered with Indigenous communities in the region to monitor species of cultural importance. This includes a project with the Lakeland Métis Nation on a study tracking moose occupancy around in situ oil sands operations in traditional hunting areas.

“This study combines traditional Métis insights from knowledge holders with western scientific methods for data collection and analysis,” Roberts said.

The institute also works with oil sands companies, a relationship that Roberts sees as having real value.

“When you are trying to look at the impacts of industrial operations and trends in industry, not having those people at the table means you are blind and don’t have all the information,” Roberts says.

The report was commissioned by Canada’s Oil Sands Innovation Alliance, the research arm of Pathways Alliance, a consortium of the six largest oil sands producers.

“We tried to look around when we were asked to put together this report to see if there was a template but there was nothing, at least nothing from a jurisdiction with significant oil and gas activity,” Roberts said.

“There’s a remarkable level of analysis because of how much data we were able to gather.”

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Alberta

Meet Marjorie Mallare, a young woman with a leading role at one of Canada’s largest refineries

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Marjorie Mallare at Imperial Oil’s Strathcona refinery. 

Fr0m the Canadian Energy Centre

By Cody Ciona

Mallare manages an all-female team of engineers helping keep operations smooth and safe

As the utilities and hydroprocessing technical lead for Imperial Oil’s Strathcona Refinery near Edmonton, 32-year-old Marjorie Mallare and her team help ensure operations run smoothly and safely at one of Canada’s largest industrial facilities.

The exciting part, she says, is that all four engineers she leads are female.

It’s part of the reason Mallare was named one of ten Young Women in Energy award winners for 2025.

“I hope they realize how important the work that they do is, inspiring and empowering women, connecting women and recognizing women in our industry,” she says.

“That can be very pivotal for young women, or really any young professional that is starting off their career.”

Born and raised in the Philippines, Mallare and her family moved to Edmonton near the end of junior high school.

Living in the industrial heartland of Alberta, it was hard not to see the opportunity present in the oil and gas industry.

When she started post-secondary studies at the University of Alberta in the early 2010s, the industry was booming.

“The amount of opportunities, at least when I started university, which was around 2011, was one of the high periods in our industry at the time. So, it was definitely very attractive,” Mallare says.

When choosing a discipline, engineering stood out.

“At the time, chemical engineering had the most number of females, so that was a contributing factor,” she says.

“Just looking at what’s available within the province, within the city, chemical engineering just seemed to offer a lot more opportunities, a lot more companies that I could potentially work for.”

Through work co-ops in oil and gas, her interest in a career in the industry continued to grow.

“It just kind of naturally happened. That drew my interest more and more, and it made it easier to find future opportunities,” Mallare says.

Following a work practicum with Imperial Oil and graduation, she started working with the company full time.

On the side, Mallare has also driven STEM outreach programs, encouraging young women to pursue careers in engineering.

In addition to supporting the Strathcona Refinery’s operations department, Mallare and her team work on sustainability-focused projects and reducing the refinery’s carbon footprint.

The 200,000 barrel per day facility represents about 30 per cent of Western Canada’s refining capacity.

“Eventually, our group will also be responsible for running the new renewable diesel unit that we’re planning to commission later this year,” says Mallare.

Once completed, the $720 million project will be the largest renewable diesel facility in Canada, producing more than one billion litres of biofuel annually.

Projects like these are why Mallare believes Canada will continue to be a global energy leader.

“We’re leading others already with regards to pursuing more sustainable alternatives and reducing our carbon footprints overall. That’s not something we should lose sight of.”

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