Canada’s shale gas opportunity

It is evident that Canada is one of the world’s natural resource superpower with vast amount of reserves hiding underneath our lands. Natural gas is not an exception.

Most of Canada’s natural gas reserves sit at the Western Canadian Sedimentary Basin (“WCSB”) which extends from the Northwest Territories to Manitoba. There are lots of development opportunity there; yet not much of it has been developed to its full potential.

With Asian demand for liquefied natural gas rise, and provided that Western Canada’s LNG terminal project at Kitimat is completed, it will lead to major developments in Northern BC and Alberta to export natural gas.

Aside from international demand, there are domestic demands which will lead to even more development in the WCSB. As coal-fired generation plants are retired with the new regulation, power generation companies will slowly be changing the method of power production to natural gas – a cleaner and safer method. 

Current trends in Canadian coal

Canada is phasing out coal nation-wide due to its ‘dirty’ characteristics and moving on to LNG for electricity generation. Currently coal accounts for approximately 13~14% of Canadian power generation and hydroelectricity remain dominant with around 65%.

last of the coal-fired generation plants are expected to shut down (with the extension of life) around the 2030s, resulting in the attempt to sell coal assets by numerous mining companies to players whose coal demand is still strong such as China to dispose of the soon-to-be unnecessary coal assets.

Natural gas currently generates around 6-7% of total energy Canadians use and is projected to increase. Supply-wise, there is no worry as many natural gas deposits are being developed.