‘Bad timing’: Natural gas firms ramping up for LNG Canada face drought conditions

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‘Bad timing’: Natural gas firms ramping up for LNG Canada face drought conditions
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Water is a key resource in the oil and gas industry for drilling and completion operations.

An LNG processing unit called a train that is used to convert natural gas into liquefied natural gas is seen at the LNG Canada export terminal under construction in Kitimat, B.C., on Wednesday, September 28, 2022. THE CANADIAN PRESS/Darryl DyckA report by Deloitte Canada warns drought conditions in Western Canada could strain natural gas producers preparing to supply the country’s first large-scale LNG export facility.

The Mountain View Regional Water Services Commission, owner of the Anthony Henday Water Treatment Plant on the banks of the Red Deer River, has already passed a ban on oil and gas operations using its treated water.“Using recycled water or other alternative water sources, with additives to achieve the necessary composition for effective fracture operations, is an option, but it comes with costs,” the authors wrote.

-- Shares of BCE Inc. tumbled to the lowest in more than a decade and Rogers Communications Inc. suffered its biggest drop of 2024 after BMO Capital Markets published a darker outlook on Canada’s telecom sector.

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