Life Cycle Analysis of emissions for propane from natural gas production in the Montney

S&P Global recently completed a life-cycle analysis for emissions for propane produced from Montney gas production. Propane is a clean burning, easily transportable fuel that can be a key part of the energy transition. Because of its versatility and low-carbon footprint, propane can be used as a backup fuel for renewable energy and can be used in remote communities that burn other hydrocarbons, such as fuel oil, to help the environment.

This study encompasses the emissions from each part of the entire, complex value chain from upstream production, natural gas liquids extraction, transportation, fractionation, distribution, and end-use combustion of propane. This work analyzes three distinct pathways to markets both in Western and Eastern Canada.

The Montney has become the focus for producers' drilling activity for the past several years and will remain so due to the high liquids content of the natural gas produced. An ever-increasing share of NGL and thus propane production will come from the Montney over the next several years. For this reason, the study focused on propane production from this area as the start of the life cycle pathways.

This GHG emissions study provides essential insights to understand the carbon competitiveness of propane today and for the energy transition. You can download a full copy of this study for free here.

Posted 13 May 2022 by Bill Rawlusyk, Executive Director, North American NGL Markets, IHS Markit and

Cathy Crawford, Director, GHG Estimation and Coordination, IHS Markit and

Jordan Woloschuk, Senior Research Analyst, Midstream Oil & NGL, IHS Markit and

Kevin Birn, Vice President GHG Estimation & Coordination and Chief Analyst Canadian Oil Markets, IHS Markit

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.