Calgary: The National Energy Board released its Canadian Energy Dynamics: Review of 2014 – Energy Market Assessment February 19.
“It’s amazing what can change within a year in energy across the country,” said Darren Christie, Director of Energy Markets at the NEB. “Beyond the oil price story, 2014 saw the Polar Vortex and more. Eastern Canada moved rapidly away from overseas oil, replacing it with oil from Western Canada and the U.S. And the propane market went from supply shortages and price spikes in early 2014 to supply abundance and low prices by year-end.”
Canadian crude oil exports by pipeline and rail reached new highs in 2014, while natural gas exports continued to decline as gas flows changed across North America, and notably into Ontario and Quebec. Consumers in Ontario and Québec are increasingly aiming to access natural gas from the nearby Marcellus Shale. Several pipeline companies are considering building or expanding pipelines to move natural gas from the U.S. into Ontario and Québec. Over the last year TransCanada announced plans to invest almost $2 billion to tap into growing Marcellus supplies. Conventional fuels were increasingly phased out by cleaner fuels, exemplified by Ontario’s completion of its coal phase-out and growth in small-scale liquefied natural gas.
In B.C., new hydroelectric projects and upgrades are planned to meet the expected 40 per cent increase in electricity demand over the next 20 years. The installation of a fifth and sixth turbine at the Mica dam in 2015 will add 1,000 MW of capacity. In December, the provincial government approved the 1,100 MW Site C project to be located on the Peace River in northeastern B.C. Construction on the $8.8 billion facility is expected to start in summer 2015, although the project faces opposition and potential legal challenges.
In wind, over 1,800 MW of capacity was installed in Canada in 2014, surpassing the 1,600 MW added in 2013. Total installed wind capacity in the country grew to nearly 9,700 MW as of December 2014, which represents about seven per cent of total installed capacity.
In thermal generation, three out of the seven generators installed in Alberta in 2014 were small cogeneration units, while two large units at Imperial Oil’s Cold Lake and Kearl oil sands operations were near completion by year-end. Many companies or institutions have chosen to build cogeneration units to supply both power and heat to their facilities.
See also the related article by Gordon Kaiser, “Canadian Energy Year in Review,” elsewhere this issue under National News.