PETRONAS BC Reprise!

lng-canada-cattaneoHaving given up its bid to lead BC LNG Terminal investments with a mega plant on Lelu  island, PETRONAS seems unwilling to be left out. On the 31st of May  2018 PETRONAS owned Progress Energy announced  that another PETRONAS  wholly-owned entity, the North Montney LNG Limited Partnership (“NMLLP”), “has entered into a Purchase and Sales Agreement for an equity position in the LNG Canada project in Kitimat, British Columbia, Canada”. Pending regulatory approvals and associated agreements, the composition of ownership in this ‘LNG Canada’ project will be PETRONAS (through NMLLP), (25%); Shell Canada Energy, a subsidiary of Royal Dutch Shell plc (“Shell”), (40%); PetroChina Canada Ltd. (15%); Diamond LNG Canada Ltd., a subsidiary of Mitsubishi Corporation, (15%); and Kogas Canada LNG Ltd. (5%).

Before PETRONAS joined this consortium, Chris Newman of Energeticcity.ca, had reported that industry analysts consider the project  to be a long shot. Yet in an even earlier article in Energeticcity.ca (also by Newman), B.C.’s Premier John Horgan, is reported to have said that the project will proceed “It has all of its permits in place, has social license from First Nations in the region, has the support of the community, and is waiting for economic conditions to turn around”.

 

Image: http://vancouversun.com/opinion/columnists/vaughn-palmer-ndp-celebrates-petronas-return-but-lng-canada-hurdles-remain

http://www.progressenergy.com/2018/05/31/petronas-enters-agreement-to-acquire-25-equity-in-lng-canada-project/

https://www.energeticcity.ca/2017/06/horgan-i-support-lng-provided-the-conditions-are-met/

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BC Energy Oroboros 2

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According to the The Financial Post,  B.C. Hydro, the Crown agency responsible for electricity in the province has been privately expressing concerns that earthquakes triggered by fracking are a potential risk to its dams.

Fracking brings dams

Fracking brings earthquakes

Earthquakes break dams

Fracking breaks dams

Apparently, concerns about this possibility were first expressed in internal documents in 2009 and it is suggested that as early as 2014, B.C. Hydro drew up an agreement with the B.C. Oil and Gas Commission (BCOGC), to create five-kilometer buffer zones around dams within which new fracking and drilling rights would not be issued.

While this alleged agreement indicates the serious concerns within BC Hydro,  their public position seems a little more cavalier. In a response to Financial Times queries on this matter, BC Hydro seems to have responded with the following  – “… our dams can withstand events many times larger than those associated with fracking.”  The crown corporation holds that while,  ” fracking does have the potential to increase natural seepage  … ( this) … is an issue of increased cost, not dam safety … ”

Image: https://www.scoop.it/t/transcalar-imaginary

http://business.financialpost.com/commodities/energy/b-c-hydro-concerned-earthquakes-from-fracking-could-damage-peace-river-dams

 

PETRONAS Dams in BC

fracking hell BC

As reported in an article arising from research undertaken as part of the Corporate Mapping Project (CMP), and in the context of what has been called a free-for-all in the energy industry, 17 organizations including the Canadian Centre for Policy Alternatives (CCPA) have called for a full public inquiry into natural gas industry fracking operations in BC. At the centre of this controversy is PETRONAS subsidiary, Progress Energy which built two massive unlicensed dams  in violation of provincial environmental regulations.

These 2 dams are the largest amongst about 50 unlicensed dams that the  CCPA brought to the British Colombian Government’s attention in May this year. In fact, the largest of these, the Lily Dam, is described as being 23 meters tall, the height of a 7 story building, while the threshold for the licensing requirement is 15 meters.  Following on from the CCPA exposure of the situation in May, investigative journalist Andrew Nikiforuk has reported that BC’s Oil and Gas Commission (OGC) inspections revealed serious problems with 7 dams of which Progress Energy is responsible for 5. As a an initial consequence, the provincial government ordered  Progress Energy to drain its two largest dams and has since government has since denied the company’s application for retrospective licensing.

Complicating the politics and the ethics of this corporate/ governmental relationship is the fact that the 2 massive Progress Energy dams, along with the 50 or so other such structures have built by energy companies on lands that are subject to the 1899 Treaty 8 made with the region’s First Nations. The Blueberry River First Nation (BRFN) lands manager Norma Pyle, affirms that the Nation has alerted the Crown about diminished water quantity, “We have been watching lake levels drop, muskeg disappear, mineral licks dry up and streams reduce to small versions of their former selves’. Further, BRFN’s legal counsel Maegan blames regulatory oversight  as “hundreds of thousands of cubic meters of freshwater in their territory is being illegally impounded for oil and gas operations. ”

It is claimed that in the CMP article that documents obtained by the CCPA indicate that all of the unauthorized dams were built to trap freshwater used in the fracking process operation where huge quantities of water are pumped under intense pressure to fracture or crack open deep rock formations so that trapped methane gas is released. And it is further asserted that one such Progress Energy fracking operation. using 160,000 cubic metres of water, triggered a 4.6 magnitude earthquake near Fort St. John in 2015.

Image https://thetyee.ca/News/2017/05/03/Petronas-Unauthorized-Dams-Fracking/

http://www.policynote.ca/drain-it-petronas-subsidiary-ordered-to-take-action-at-two-controversial-fracking-dams/

https://www.policyalternatives.ca/newsroom/news-releases/public-inquiry-needed-properly-investigate-deep-social-and-environmental

PETRONAS in the Wild West

dams

There are reported to be at least 51 unregulated and unapproved dams in Northern BC built by oil and gas companies for their fracking operations. The two largest  facilities, Lily Dam and the Energy Town Dam, both over 15 meters tall, are operated by PETRONAS subsidiary, Progress Energy Canada Ltd.  The scale of these dams means that they should be classified as ‘major projects‘ under BC’s Environmental Assessment Act. requiring that they be assessed by the Assessment Office (EAO) prior to construction.  On Oct. 31 2017  the provincial Environmental  EAO rejected an application by the company seeking to exemption for these structures from an environmental assessment.The dams have reportedly been operational for many years under the watch of the previous Liberal government and the new NDP Energy, Mines and Petroleum Resources Minister Michelle Mungall is reported to have stated that their government is “reviewing the details in order to strengthen oversight going forward,”

On Oct 10th this year, while the Progress Energy application for exemption was still in progress, Okanagan Indigenous leader, Grand Chief Stewart Phillip and Ben Parfitt of the Canadian Centre for Policy Alternatives  wrote that “If the EAO grants Progress’s request, it sends a terrible signal that BC really is the Wild West. Rules and regulations are simply there to be ignored.” While the EAO has finally applied its own rules, saving us from the Wild West designation, this decision leaves us wondering, how well the authors’ terms, applied to our province in the preceding years of Liberal rule. More pertinently, it leaves us wondering if, under the new NDP/Green regime, we will finally get the proper oversight of such dams and if in future there will be prior consultation with the First Nations on whose traditional lands they are being built.

Image: http://www.policynote.ca/drain-it-petronas-subsidiary-ordered-to-take-action-at-two-controversial-fracking-dams/

http://www.policynote.ca/an-environmental-mess-bc-government-needs-to-bring-gas-industry-and-regulator-under-tighter-control/

PETRONAS’ BC Focus

Progress-LandLease
According to the Nikkei Asian Review, Progress Energy, a subsidiary of Malaysia’s Petroliam Nasional (PETRONAS) has just put its oil and gas assets in Deep Basin, Alberta up for sale. Given this upcoming sale and also the cancellation of their massive Pacific Northwest LNG project on Lelu island, British Columbia, it appears that Progress Energy and PETRONAS will be concentrating their future Canadian investments and activities in North Montney, British Columbia. Progress Energy claims that it is the largest holder of contiguous areas of land in Montney and that over 13,000 drilling locations have been identified of which about 215 wells have been  drilled.

https://asia.nikkei.com/Markets/Nikkei-Markets/Petronas-unit-to-focus-investments-in-Canada-s-North-Montney

http://www.progressenergy.com/operations/exploration-production/north-east-b-c/

IMAGE: http://www.progressenergy.com/operations/exploration-production/

 

 

 

 

 

 

Fracking and Earthquakes

fracking
According to Erin Ellis of the Observer a federal research scientist with the Geological Survey of Canada has claimed that his research proves that the largest earthquake ever detected in British Columbia’s northeastern shale gas region was caused by the fracking activities of PETRONAS subsidiary, Progress Energy Inc. This was a 4.6 magnitude quake that took place in the northern Montney Play of British Columbia in August 2015. The  study analyzed the seismic activity its connection with fluid injection hydraulic fracturing being deployed in the region. Spatial and temporal correlation of seismic activity with the fluid injection in the region appears to have revealed that these events are better correlated with hydraulic fracturing than other types of injection. In other words the earthquake that was felt at the surface of the earth near the town of Fort St. John, was the direct result of liquids being pumped into underground rock formations under high pressure to extract natural gas.

http://www.nationalobserver.com/2017/04/12/news/federal-scientist-has-proof-fracking-petronas-owned-company-caused-big-bc-earthquake

http://www.bssaonline.org/content/early/2017/02/17/0120160175.abstract

Image: https://phys.org/news/2015-09-earthquake-baseline-future-fracking.html

Progress Energy

petronas progreess
While the Pacific Northwest LNG logo belies its PETRONAS connections, the more established Progress Energy logo proudly wears the PETRONAS green.  In his announcement on the termination of the Lelu Island development, Datuk Anuar Taib
who is Executive Vice-President & Chief Executive Officer of Upstream PETRONAS, Chairman of Pacific NorthWest LNG and Chairman of Progress Energy made it clear how deeply established in and committed to Canadian natural resource development this Malaysian crown corporation really is – “Over the years, Progress Energy and its North Montney joint venture partners have developed a reserves and contingent resource of around 52 trillion cubic feet of natural gas reserves and resource in the North Montney assets. … we are positioning Progress Energy to be one of the top natural gas exporters in North America. That’s why we are moving our Unconventional Centre of Excellence from Kuala Lumpur to Calgary. The centre, which will house a network of technical experts with similar expertise, responsibilities and interests, will deliver operational innovations for PETRONAS worldwide unconventional gas plays with its core in Calgary.” Once again I find myself swelling with Malaysian Pride and, at the same time, shrinking fearfully at the realization that what we are talking about a monumental fracking operation in Canadian earth!