Canada has been facing a similar situation to the U.S. in recent years in which the production of natural gas liquids, such as propane, has been rising sharply thanks to a focus on liquids-rich gas wells in unconventional gas plays. In response to the rising bounty of propane, infrastructure development in Canada has focused on export projects, and in 2019, the completion of the new Ridley Island Propane Export Terminal in British Columbia enabled the first overseas exports of propane from Canada’s west coast, allowing Western Canadian producers to access destination markets beyond just the U.S. for the first time. Later this year, Pembina Pipelines, a developer of energy infrastructure projects across Western Canada, will complete a new propane export terminal just outside Prince Rupert, BC, further boosting propane exports to overseas markets. Today, we take a closer look at propane supply issues, Pembina’s new propane export terminal and recently announced plans to further expand the terminal’s export capacity.
The shift to more unconventional oil and natural gas plays in North America over the past decade has generated significant production increases in all forms of hydrocarbons. Crude oil, natural gas and natural gas liquids (NGLs), which includes propane, have all been hitting record or near-record levels in both the U.S. and Canada. This has forced markets in both countries to find more outlets for their growing output, both domestically and overseas.
Canadian crude output is rising, requiring new export routes. As traditional pathways face constraints, the U.S. Rockies—especially the Guernsey, WY hub—are emerging as key corridors for moving Canadian heavy crude to downstream markets, including the Gulf Coast.
Although the U.S. dealt with the rising volumes of NGLs by increasing overseas exports earlier in the 2010s (and continues to do so), Canada has only had to grapple with this problem since the beginning of 2016, when a shift to more liquids-rich natural gas plays, primarily the Montney and Duvernay in Alberta and British Columbia, began to produce significant additional amounts of propane, normal butane and other liquids (condensate, or natural gasoline, being a favorite). We explained the economic drivers behind this shift to more liquids-rich gas wells in our seven-part series Get Me Out of Here, and the results of this increased focus are readily apparent in the rise of Western Canada’s propane supply, the subject of today’s blog (see Figure 1).
About the song
"When Love & Hate Collide" was written by Joe Elliott and Rick Savage of Def Leppard. Originally recorded in 1990 as a demo for possible inclusion on the group’s Adrenalize album, the finalized version appears as the ninth cut on the band's 1995 greatest hits album, Vault: Def Leppard Greatest Hits (1980-1995). The demo of the song contains the final recorded guitar solo of original guitarist Steve Clark, who died in 1991. When released as a single in October 1995, "When Love & Hate Collide" went to #58 on the Billboard Hot 100 Singles chart, #29 on the Mainstream Top 40 and #39 on the Adult Top 40 charts. The song was produced by Def Leppard and Pete Woodroffe. Personnel on the record were: Joe Elliott (lead and backing vocals), Steve Clark (guitars, backing vocals), Phil Collen (guitars, backing vocals), Vivian Campbell (guitars, backing vocals), Rick Savage (bass, backing vocals), Rick Allen (drums, backing vocals), Stevie Vann (backing vocals), Randy Kerber (piano) and Michael Kamen (string arrangements).
Vault: Def Leppard Greatest Hits (1980-1995) was the first greatest hits album by the band. Produced by Mutt Lange, Mike Shipley, Pete Woodroffe and Def Leppard, the LP was released in October 1995. "When Love & Hate Collide" was the only newly recorded song on the album, even though the band had originally made a demo of it in 1990. Vault went to #15 on the Billboard Top 200 Albums chart, and has been certified 5X Platinum by the Recording Industry Association of America.
Def Leppard is an English rock band formed in Sheffield, England, in 1977. Since 1991, the band has consisted of Joe Elliott, Rick Savage, Rick Allen, Phil Collen and Vivian Campbell. Former band members were Tony Kenning (1977-79), Pete Willis (1977-82) and Steve Clark (1978-91). Def Leppard has sold more than 100 million records worldwide. The band has released 11 studio albums, two live albums, four compilation albums, two EPs and 60 singles. They have won two American Music Awards and are members of the Rock and Roll Hall of Fame. Def Leppard still records and tours to this day, and will be on tour from May through October of this year.