Pembina Pipeline and TC Energy announced plans on June 17 to build a transportation network capable of transporting nearly 20 million tons of carbon dioxide annually to the Alberta Storage Center. According to these companies, annual emissions are equivalent to 60,000 metric tons of carbon dioxide per day, which accounts for approximately 10% of Alberta's industrial greenhouse gas (GHG) emissions.

The two midstream operators referred to the project as the Alberta Carbon Grid Project and stated that it would connect the Fort McMurray area-the center of the province's heavy oil production-together with the Drayton Valley area to the storage site. Link with other delivery points.

Carbon dioxide may begin to flow out of these locations as early as 2025, and may reach full capacity by 2027. First, the project must remove regulatory hurdles, and Pembina is making an acquisition that must be completed before the final investment decision is made. The two companies stated that they are ready to apply for a permit and have contacted the government to obtain the right to seizure.

Pembina operates more than 11,000 miles of oil and gas pipelines in the United States and Canada, and the larger TC Energy controls nearly 58,000 miles of pipelines across North America. Both companies emphasized in their announcements that carbon storage and reuse projects are essential for Canada to achieve its goal of reducing greenhouse gas emissions by 40-45% by 2030 (from 2005 levels).

A week ago, Canada's five largest oil sands producers (90% of total production) shared a common goal of achieving net zero greenhouse gas emissions by 2050. A week later, TC Energy officially decided to abandon all efforts to build the controversial Keystone XL pipeline, which aims to transport more than 800,000 B/D of heavy oil from Alberta to storage and refining centers in the United States.

The cost data for the carbon grid has not yet been released, but Pembina and TC Energy said this represents "billions of dollars in incremental investment." Capital expenditures are expected to be partially alleviated through the use of existing pipeline infrastructure, which can be modified to handle carbon dioxide.

The two companies also emphasized that Carbon Net will rely on long-term contracts and marketing systems to achieve carbon offset transactions. In order to further improve the commercial viability of the project, the two companies stated that the royalty will be "substantially lower than the current carbon price in Alberta."

In addition to obtaining carbon dioxide from the oil and gas industry, the proposed network will also collect carbon dioxide from the power sector in the region. The key components of the proposed carbon grid include:

Pembina and TC Energy stated that based on demand, they have identified several other potential procurement and storage locations, which are beyond the initial scope. The two companies said they are also willing to cooperate with other infrastructure owners to expand the capacity of the project.

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Journal of Petroleum Technology is the flagship magazine of the Society of Petroleum Engineers, providing authoritative briefings and topics about the advancement of exploration and production technology, oil and gas industry issues, and news about SPE and its members.

ISSN: 1944-978X (online) ISSN: 0149-2136 (print)