CNPC in Canada
CNPC began its oil and gas business in Canada in 1992. Currently, our investments in the country include the MacKay River and Dover oil sands projects, the LNG Canada project, the Duvernay shale gas project, the Groundbirch tight gas project, and the Grand Rapids Pipeline.
We carry out oil and gas business in Canada following the principle of "mutually beneficial and win-win cooperation for common development", and integrate HSE into all of our activities. With the safety commitment to “zero harm”, we have not recorded a major spill. Moreover, we are actively engaged in various public welfare activities, trying to drive and promote the communities’ sustainable development.
Oil and Gas Operations
MacKay River and Dover Oil Sands Projects
The MacKay River and Dover oil sands projects in northeastern Alberta are wholly owned and operated by CNPC. Steam-assisted gravity drainage (SAGD) technology is introduced at the projects to enhance the ultimate recovery of heavy oil.
Construction of the MacKay River Phase 1 was completed in August 2016, and the first steam injection was conducted in December. The Phase 1 project went on stream in August 2017. The evaluation on recent infill drilling data of the project is ongoing, and the result will help us determine if and when to begin development activity at Dover.
LNG Canada
LNG Canada, located in Kitimat, British Columbia, is jointly operated by PetroChina, Shell, Mitsubishi, Petronas and KOGAS.
LNG Canada is by far the largest energy investment project in Canada. The project has been designed to achieve the lowest carbon intensity of any LNG project in operation today.
The project will be implemented in two phases. Phase 1 includes two LNG trains, with an annual capacity of 14 million tons, and Phase II includes two additional trains. Upon the completion of two phases, the total capacity is expected to reach 28 million tons per annum. In October 2018, all the project participants made the final investment decision for Phase I.
Duvernay Shale Gas Project
In September 2012, CNPC reached an agreement with Encana to acquire partial interests in the Duvernay shale gas project. Now, the project has built three oil/gas processing plants in Simonett.
Groundbirch Tight Gas Project
The Groundbirch tight gas project, located in east-central British Columbia, with a total area of 628 square kilometers, includes four natural gas processing plants. Groundbirch produces methane gas, natural gas liquids and condensate. In 2019, Groundbirch and Duvernay saw benefits from renewed gas transportation agreements which reduce PCC’s transportation commitments.
Grand Rapids Pipeline
In October 2012, CNPC and TransCanada Pipeline Ltd. (renamed TC Energy in 2019) entered into a joint venture agreement for the Grand Rapids Pipeline, with an expectation to build a 460-km crude oil and diluents pipeline between the MacKay River field and Edmonton/Heartland. In the first phase, a 20-inch-diameter oil sand and bitumen pipeline was built and went into service in 2017.