2024 natural gas production in Western Canada faces risk due to drought, coinciding with LNG export terminal opening and potential water shortages for hydraulic fracturing.
Deloitte Canada warns persistent drought conditions in Western Canada pose a significant risk to natural gas producers in 2024, coinciding with increased demand for natural gas and the opening of the first liquefied natural gas (LNG) export terminal in Canada. The report highlights potential water shortages, particularly in northeast British Columbia and northwest Alberta, where drought conditions are already severe. The industry, which relies on hydraulic fracturing using large amounts of fresh water, may face extra costs and challenges in water management as drought conditions exacerbate the issue.
April 03, 2024
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