RE:RE:RE:RE:RE:RE:RE:RE:RE:Mega Shale Gas Project Paramount’s shale gas holdingsLiard people want development, and this is the best feedstock for LNG in the world, dry dry dry,
they need to push for the development, there is a 20 inch pipeline Consideration of natural gas development in
Yukon will continue to take place within the broader context of global energy dynamics as explored in CERI’s North American Natural Gas Pathways study. Notably, natural gas as a share of global energy consumption3 has grown by 32 percent over the past 40 years. Of the other two leading energy sources worldwide, coal grew by 11 percent while oil demand grew by 32 percent over the same period. In 1973, all fossil fuels accounted for 94 percent of global energy consumption; by 2013, the percentage had decreased, but fossil fuels still accounted for 87 percent of global energy consumption. Natural gas is an increasingly important energy source in a world economy that remains largely driven by hydrocarbons. This report’s findings include the following: Natural gas development is driven in part by increased demand from mining investment. Basin availability and land access must be addressed in advance of energy infrastructure development in Yukon. 36 percent of Yukon’s sedimentary basins that are oil and/or gas prospective, representing 5.4 percent of the territory’s land area, are available for development in 2014. A further 40 percent of hydrocarbon prospective areas in Yukon, representing 6 percent of the territory’s land area, are temporarily unavailable but may be made available in the future. Eagle Plain basin is the most feasible area for development in 2014, with 73 percent of the land area available. The second most feasible area is Peel Plateau & Plain basin, with 36 percent of the land area available. 4 Liard basin in southeast Yukon is a promising third basin that could see development when more of its land becomes unencumbered and accessible. The analysis outlines economic benefits, including fiscal impacts, to Yukon and the rest of Canada associated with natural gas development. Scenario 1 This scenario considers a domestic pipeline option from Eagle Plain basin to Stewart Crossing, with a lateral line to the Casino mine site (see Figure 4.1). This pipeline would be constructed and operated over the 2017-2041 timeline. Natural gas development capital and operating investment under Scenario 1 would equal C$9,7585 million in all Canadian provinces. 3 Primary energy consumption grew from 5,710.29 MTOE in 1973 to 12,730.43 MTOE in 2013, according to the 2014 BP Statistical Review of World Energy. Within that period, natural gas consumption increased from 1,046.16 MTOE to 3,020.38 MTOE; coal consumption rose from 1,558.97 to 3,826.71 MTOE; and oil grew from 2,763.56 to 4,185 MTOE. 4 Since the development of this analysis, Yukon government has made public statements that indicate all of the Peel Plateau & Plain basin is likely to be 100% encumbered/unavailable while judicial action relating to the area is concluded. The analysis in this report does not account for this reduction in available oil and gas lands. 5 Unless otherwise stated, all currency amounts are in 2013 Canadian dollars. Economic Impacts of Natural Gas Development xi Within the Yukon Territory March 2015 Scenario 1 could provide the territory with 50 MMcf/d of natural gas for 80 years, assuming no further exploration or development. Natural gas development under Scenario 1 would create a total of C$10,506 million of GDP impact in Canada, with C$875 million of that GDP impact in Yukon over the 2017- 2041 timeline. Natural gas development under Scenario 1 would create and preserve a total of 62,000 person years of employment in Canada, with 6,000 person years of the employment created and preserved in Yukon over the 2017-2041 timeline. 6 Natural gas development under Scenario 1 would create total tax receipts of C$2,077 million in Canada, with C$101 million of those receipts in Yukon over the 2017-2041 timeline. Natural gas development under Scenario 1 would create royalty income for Yukon of $452.9 million from $3,870 million in sales gas value over the 2017-2041 timeline. Scenario 2 Scenario 2 offers a domestic and export pipeline option to move natural gas from Peel Plateau & Plain basin and Eagle Plain basin to Stewart Crossing and then further south to the US border near Haines, Alaska; a lateral line would also be built between Stewart Crossing and the Casino mine site (see Figure 4.7). A generation and liquefaction facility at Stewart Crossing would provide on-grid supply and serve other off-grid mines. The export pipeline would feed a small LNG plant to be constructed in Haines. All pipelines and facilities would be built and operated over the 2017-2041 timeline. Under Scenario 2, estimated total capital and operating investment in all Canadian provinces from 2017-2041 would equal C$27,653 million. Scenario 2 could provide the territory with 50 MMcf/d of natural gas and the Haines plant with 180 MMcf/d of natural gas for 24 years, assuming no further exploration or development. Natural gas development under Scenario 2 would create a total of C$32,791 million in GDP impact in Canada, with C$2,712 million of that GDP impact felt in Yukon over the 2017-2041 timeline. Natural gas development under Scenario 2 would create and preserve 191,000 person years of employment in Canada with 19,000 of the person years created and preserved in Yukon over the 2017-2041 timeline. Natural gas development under Scenario 2 would create tax receipts of C$6,497 million, with C$314 million of those receipts in Yukon over the 2017-2041 timeline. Natural gas development under Scenario 2 would create royalty income for Yukon of $1,360 million from $13,530 million in sales gas value over the 2017-2041 timeline.