Page 10 - NorthAmOil Week 16 2022

NorthAmOil ENERGY TRANSITION NorthAmOil

Suncor wants to add
up to 225,000 bpd
of capacity at its Base
Mine.

Emissions intensity comes to the

forefront for new Canadian projects

CANADA MAJOR new oil and gas projects in Canada how oil production projects subject to review ...
can increasingly expect their success in terms should demonstrate that their emissions will be
of obtaining federal approvals to hinge on their ‘best in class’,” the letter said. It has not yet been
emissions intensity. This has become particularly clarified, though, what would qualify as being
clear over the past month, after the Canadian best in class.
government approved Equinor’s proposed Bay Guilbeault’s letter was sent in response to
du Nord project while warning around the same a request by Suncor to extend the regulatory
time that Suncor Energy’s planned Base Mine approval process for the Base Mine expansion
expansion may not meet climate targets. by nine months. According to a Suncor spokes-
Oil produced at Bay du Nord is anticipated woman, Sneh Seetal, who was cited by Reuters
to have an emissions intensity of 8 kg of carbon this week, the company is taking time to improve
dioxide (CO2) per barrel, while Suncor’s existing the project. According to the
Base Mine operations have an emissions inten- It has not been disclosed what improvements
sity of around 42 kg of CO2 per barrel. Suncor is making to the project, but is seems letter, Ottawa is
Suncor is seeking to boost output at the Base likely that the company will have to take Guil-
Mine by up to 225,000 barrels per day (bpd) of beault’s comments into consideration. Suncor reviewing how oil
bitumen via the extension project. However, also has its own net-zero goal that it is aiming
Canadian Minister of Environment Steven to reach by 2050, as well as being part of the Oil- and gas projects
Guilbeault warned the company in a letter this sands Pathways to Net Zero alliance, comprising are evaluated
month that the extension may not pass a federal producers that account for around 95% of Can-
environmental review in its current form owing ada’s oil sands output and that are also aiming against each
to the level of CO2 emissions involved. to achieve net zero from their operations by that
“Emissions at this level may not align with year. other.
the pace and scale of emissions reductions Suncor’s new application for the Base Mine
required to achieve our targets,’’ the letter stated, extension will shed light on how the company
in reference to Canada’s federal target of net- intends to meet its net zero target, Suncor share-
zero emissions by 2050. “I am of the opinion that holder NEI Investments’ director of corporate
the project, as currently proposed, would likely engagement, Jamie Bonham, was cited by Reu-
cause unacceptable environmental effects within ters as saying. Canada’s approval of Bay du Nord
federal jurisdiction,” Guilbeault went on to say. illustrates that there is still scope of oil megapro-
According to the letter, Ottawa is reviewing jects to move forward in the country. However,
how oil and gas projects are evaluated against the path to approval appears to be a more chal-
each other. lenging one for oil sands projects unless they can
“The government will develop guidance for do more to lower their emissions intensity.™

P10 www. NEWSBASE .com Week 16 21•April•2022