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Our North American Crude Markets Service (NACMS) includes analysis of various supply nodes and forecast takeaway capacities for various regions. The scope of this insight surrounds future West Canadian takeaway capacity. Specifically, it seeks to provide a full-scale background and update on three crucial midstream projects: Keystone XL, Trans Mountain Expansion, and Line 3 Replacement. As 2017 draws to a close and West Canadian production is forecast to grow, all three pipelines have essential regulatory and commercial milestones to reach before they are fully approved and ready to commence construction and operations.

While the process of piping natural gas to market is relatively simple, the LNG value chain is far more complex and involves carbon emissions along the chain prior to final combustion. As a result of the relatively high energy – and consequently carbon – intensity associated with liquefaction of natural gas and the requirement for any contaminating CO 2 to be removed from the feedstock gas before the liquefaction process, the levels of emissions from LNG projects can be significant. In fact a typical LNG project ranks comparably with Canadian oil sands, which are often considered to be the most carbon-intensive upstream projects. However, directly comparing LNG and pipeline gas may not be entirely fair, as contaminating CO 2 is typically left in the gas stream in pipeline projects and the CO 2 is then emitted when natural gas is burnt in the consuming market, where it is no longer counted as an upstream emission.

The Myanmar to China onshore gas pipeline is part of an integrated infrastructure project that will enable China to route oil and gas supplies to its southwestern provinces. The gas supply is underpinned by the Daewoo-operated Shwe upstream project, off the Rakhine coast. A new CNPC subsidiary, Southeast Asia Pipeline Company, was set up within Myanmar to build and operate the pipeline. China National United Oil Corporation (CNUOC) will take delivery of the gas at Kyauk Phyu.

The Mackenzie Valley Gas Pipeline project is owned by ExxonMobil (5.33%), Shell (11.2%), ConocoPhillips (16.0%), APG (33.3%), and the project operator Imperial Oil (34.17%). The pipeline would act as a gathering system to take the 6 tcf of natural gas from Niglintgak, Taglu and Parsons Lake to a compression facility near Inuvik. However, the recent developments in shale gas have made the Mackenzie Valley pipeline project uneconomic to develop at this time. As a result Wood Mackenzie no ...