B.C. to lead Canada in natural gas production growth, but pricing and LNG are key uncertainties

CALGARY, May 11, 2016 /CNW/ – The National Energy Board (NEB) today released its newest report: ‘Canada’s Energy Future 2016: Province and Territory Outlooks’ that highlights the diversity of energy/electricity sources across Canada for both the production and consumption of energy, including crude oil, hydro, natural gas and solar power resources.

The study shows that British Columbia leads the country in projected natural gas production growth. However, the market price for natural gas and the issue of LNG (liquefied natural gas) exports are both key uncertainties in the B.C. energy marketplace going forward.

Both the economy and energy use in B.C. are expected to grow faster than the Canadian average between now and 2040. The province is projected to add nearly 5,000 megawatts of electric capacity between now and 2040, primarily from hydro with some wind, biomass and natural gas additions.

The report does not include the recent key climate change policy announcement made by various provinces as well as the federal government. An update to the national Energy Futures report will include an examination of these future policies and will be released later this year.

Quick Facts:

• The ‘Canada’s Energy Future 2016: Province and Territory Outlooks’ report is the first time the NEB has published detailed information comparing and contrasting long-term energy outlooks across the provinces and territories.
• The type of energy used to generate electricity varies substantially between Canadian provinces and territories, based largely on their accessibility to resources and historical infrastructure development.
• For provinces with significant crude oil and natural gas production, prices, market fluctuations and infrastructure issues are all key determinants for future outlook.
• The types of energy consumed by Canadians varies widely across the country, due to the availability and pricing of different energy types. For example, provinces with large hydroelectric infrastructure like Quebec and Newfoundland & Labrador tend to use more electricity relative to Western provinces where natural gas is used in greater quantities. In the North, petroleum products like fuel oil and diesel are used more.
• The NEB consulted Canadian experts including environmental organizations, academics, provincial & territorial governments, industry and industry associations as the report was developed.

Quote:
“Canada’s energy production and consumption picture is as vast and diverse as the country itself. Recognizing this diversity will be critical as we deal with current energy market uncertainties and begin to implement the policies and technologies that will transform Canada to a low-carbon future. The projections in this report serve as an important baseline for those discussions,” said Shelley Milutinovic, Chief Economist, National Energy Board.

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