1. Natural Gas in Canada Canadian Gas Association CAMPUT Regulatory Course JUNE 2015

2. 2 THE CANADIAN GAS ASSOCIATION

3. NATURAL GAS

4. Natural gas is more than 95% methane (CH 4 ). It is generally located deep under ground in porous rock formations sandwiched or trapped between more solid rock formations. Biomethane, Biogas, RNG, CNG, LNG all are forms of natural gas.

5. NATURAL GAS ATTRIBUTES 5 Affordable Annual production of over 2.8 trillion cubic feet to meet over 30% of Canada’s energy needs in more than 6.5 million homes, businesses, and industry; Canada’s robust supply outlook provides increased confidence in future price competitiveness. Abundant More than 100 years of supply at current production levels. Unconventional gas has fundamentally changed North America’s supply picture, providing long-term security and reliability. Clean Efficient and clean burning energy choice; fewer emissions than many other fuels; important partner for renewables and emerging low-emission technologies. Versatile Can improve end-use efficiency, contribute to lower emissions, and provide flexible partner in power generation and transportation. Reliable Comes from a variety of sources and is supported by extensive storage and pipeline networks. Safe Leaders in complying with stringent safety standards and regulations at all stages of natural gas exploration, production, transportation, distribution and use.

6. 6 NATURAL GAS RESOURCES

7. 7 NATURAL GAS EXPLORATION

8. 8 NATURAL GAS TRADE

9. 9 NATURAL GAS PRODUCTION

10. 10 ENERGY USE

11. 11 NATURAL GAS USE – BY SECTOR

12. 12 NATURAL GAS EMPLOYMENT

13. 13 NATURAL GAS INVESTMENT

14. 14 NATURAL GAS GDP

15. 15 NATURAL GAS PIPELINES

16. 16 NATURAL GAS STORAGE

17. 17 ENERGY COMMODITY PRICES

18. 18 GLOBAL NATURAL GAS PRICES

19. 19 NATURAL GAS CONSUMERS – BY TYPE

20. 20 NATURAL GAS CONSUMERS – BY REGION

21. 21 NATURAL GAS CONSUMER SPENDING

22. 22 NATURAL GAS RESIDENTIAL CONSUMERS

23. NATURAL GAS – IN HOMES Statistics Canada reports that total household spending on natural gas has declined from $8.1 billion in 2008 to $6.4billion in 2013. Meanwhile, StatsCan reports that electricity spending has increased from $15.5 billion in 2008 to $18.9 billion in 2013. This chart illustrates a cost- comparison of natural gas, electricity, heating oil, and propane in 2013. In 2013, the average household spent between $1,358 to $4,191 to heat their home - with a savings of over $3,000 by choosing natural gas over home heating oil. 23

24. NATURAL GAS – IN TRANSPORTATION On Road: Commercial Canadian heavy engine technologies: Reduce lifecycle carbon emissions by 20-25% and 85-90% using renewable natural gas (RNG) Lower cost fuel for trucking, refuse, transit, vocational trucks. For Marine: Opportunities on Great Lakes. Ferry applications. For Rail: Strategic re-fuelling hubs can create a cleaner, safer, more economic North American rail re- fuelling network. For Off-Road LNG in Canadian mining and other vehicle operations to improve competitiveness, attract investment and lower cost and emissions. 24 Freight rail: 3% of Canadian Transportation Energy Use Marine: 4% of Canadian Transportation Energy Use Heavy duty, medium, and freight light duty: 35% of Canadian Transportation Energy Use Off road: 4% of Canadian Transportation Energy Use

25. 25 NATURAL GAS – IN POWER GENERATION

26. 26 NATURAL GAS – DECISION TRACKER www.trackenergyregs.ca

27. 27 NATURAL GAS – ENERGY REGULATION QUARTERLY www.energyregulationquarterly.ca

28. 28 ENJOY THE REST OF THE COURSE