The Alberta gas company Questerre Energy hopes to be able to derogate from the ban on gas exploration in the St. Lawrence Valley by proposing a project to produce natural gas without greenhouse gas emissions in the Bécancour region. The company also has active lobbyists in Quebec to promote its “pilot project” for the exploitation of shale gas.
According to what Questerre announced Thursday, the Calgary-based company has signed “a joint economic development agreement” with the Council of the Abenaki First Nation of Wôlinak. The objective of the project is to develop “a net-zero emissions energy center in Quebec”, and more specifically in the Bécancour region.
“The center will demonstrate the emerging circular economy through pilot projects that generate clean energy, including zero-emission gas, and evaluate new carbon recycling technology,” the statement released Thursday said. .
As revealed The duty last October, Questerre notably wanted to assess the potential for capturing and storing CO2 in the region. Carbon capture and storage consists of capturing CO2 emissions from industrial processes or oil and gas exploitation, before burying them in deep geological formations, in order to theoretically store them forever.
“Well Stimulation”
As part of the agreement with the Abenakis of Wôlinak, it is also provided that they could eventually “acquire a direct interest in the Questerre exploration permits” and “participate directly in future development”.
For the moment, however, it is only a question of “pilot projects”, explained Thursday to the Duty the president of the Quebec Energy Association (formerly known as the Quebec Oil and Gas Association), Éric Tétrault. The first would be used to “test carbon capture and storage” in wells already drilled. “With the rapid increase in carbon pricing, this will be an excellent way for industry, among others, to get out of it by eliminating carbon,” said Mr. Tétrault, by email.
Questerre also wants to develop “zero-emission natural gas production,” a project it has been trying to advance for about five years. According to Éric Tétrault, the drilling operations would run on electricity, the water used would come from “portable cisterns” and the company would not use “toxic fluids”.
The company does not mention any “fracturing” process to exploit this shale gas. “Fracting is replaced by well stimulation. On this side, technology has advanced a lot. We have nothing to lose here by testing it. We even invite skeptical partners to take part in the project if they wish,” said Mr. Tétrault. This “stimulation” process, which has already been used in the Gaspé, consists of fracturing rock underground in order to extract shale gas.
Climate solution
“Our Net Zero Technology Center project, which integrates new emerging carbon technologies, is the solution to achieving Quebec’s ambitious climate goals. We look forward to deepening our cooperation with the Abenakis of Wôlinak and with all local stakeholders,” said Questerre President and CEO Michael Binnion in a press release.
Questerre also pointed out that “the future success of the oil and gas industry depends on a balance between the economy, the environment and society.” The company also believes that “the public must participate in the choices that matter to our energy future”.
The Alberta company also has six lobbyists registered in the Quebec register, including Éric Tétrault. Their mandate specifies that they take steps to “propose to the Government of Quebec to take into account the possibility for companies holding licenses to propose new technologies or new practices, including circular economy projects and / or promoting a true energy transition such as CO2 capture and sequestration, CO2 recycling and low-emission products other than fossil fuels”.
Fracturing
Although hydraulic fracturing (which makes it possible to exploit shale gas) is prohibited in the St. Lawrence Valley under the Petroleum Resources Act, Questerre still holds several licenses in the south of the province. These cover approximately 3600 km2, they are located on the South Shore of the St. Lawrence and they form a long strip of territory that goes from Drummondville to Quebec.
Questerre is also leading a lawsuit against the Quebec government to challenge the fracking ban in the lowlands. Mr. Binnion believes that his company had discovered significant gas potential before the government closed the door to this sector.
However, the Legault government has already announced that it will put an end to oil and gas exploration in Quebec. A bill is due to be tabled this year. This should provide for financial compensation for the ten companies that still hold a total of 182 exploration permits, for an area of approximately 32,000 km2 of territory.
The Quebec state will also have to pay several million dollars for the decontamination of abandoned oil and gas wells, many of which have been leaking hydrocarbons for years. The total bill is currently unknown.
According to data from the Ministry of Energy and Natural Resources (MERN), 534 “inactive” wells have been located since 2018, and 241 others have not been found, despite inspections carried out by the ministry. Of this number, 209 are considered “unlocatable”, and therefore lost forever. Among the inactive wells located, the MERN estimates that 95 will require “work”, for example to stop natural gas or oil leaks.