Facts:

Spectra Energy plans to pursue a large-scale CO₂ storage project near its existing Fort Nelson natural gas plant in northeast British Columbia (BC).

Most of the raw natural gas in BC is “sour” meaning that it contains high levels of carbon dioxide (CO₂), as well as other compounds. At Spectra Energy’s processing facilities (such as its existing gas plant in Fort Nelson) these products are removed from the raw gas supplied by area producers. At the Fort Nelson gas plant about 70 per cent of emissions is formation CO2 (that is, CO2 which is naturally present in the raw gas in the area) and removed from the raw natural gas during processing to produce gas used for homes and businesses. The remainder is combustion CO2 which is produced as a by-product of processing natural gas. The project will remove more than one million tonnes of CO2 from reaching the atmosphere yearly.

 

History

Spectra Energy (NYSE: SE) announced in March 2009 proceeding with the next stage of the feasibility work for the project by commencing detailed geological assessments. The assessment will require drilling 2.5 kilometres into multiple sub-surface geological formations to extract core samples and perform tests of the physical properties of the saline formation into which CO2 may be sequestered.

The core samples will be sent to a laboratory for various tests and in-depth analyses. The results, together with reservoir modelling work, are expected later this year and will provide critical information regarding the geological feasibility. A concurrent review of the technical, regulatory and economic feasibility of the project also is underway. At the conclusion of the feasibility phase, a determination will be made regarding whether and when to proceed to a full-scale project.

 

Financing

• Spectra Energy’s feasibility work received support from the Government of Canada during an announcement made by Natural Resources Minister Lisa Raitt in Calgary in March 2009. 
• The project represents a partnership between Spectra Energy and the provincial government in BC which has provided a $3.4 million grant to help fund an initial feasibility phase, intended to determine whether deep underground saline reservoirs and associated infrastructure in the area are appropriate for CCS.
• The project also has the support of the U.S. Department of Energy’s National Energy Technology Laboratory, through the Energy & Environmental Research Center’s Plains CO2 Reduction (PCOR) Partnership.

More information and Press Release

Storage:

Spectra Energy will be exploring CCS in deep saline reservoirs near the existing Fort Nelson gas plant, more than two kilometers underground . This will involve drilling two exploratory wells to identify the suitability of the geology for CCS. If the reservoirs prove viable from a geological, technical and economic point of view, the project would proceed to full project design (including modifications to our gas plant and the construction of facilities).

 

Homepage:

http://www.spectraenergy.com/our_respons