Drought poses key risk to Canada’s natural gas producers in 2024: Deloitte
Persistent drought conditions are poised to challenge natural gas producers even as they aim to ramp up in anticipation of Canada’s first liquefied natural gas export terminal opening, a new report warns.
The report by Deloitte Canada identifies potential water shortages in Western Canada as a key risk facing the oil and gas sector in 2024.
Some of the most extreme drought conditions currently are in northeast B.C. and northwest Alberta, a region that is the epicentre of Canada’s natural gas drilling industry.
The report notes Alberta’s government has already set up a drought advisory panel to begin water usage negotiations, while B.C. Premier David Eby has called his province’s situation “the most dramatic drought conditions that we’ve seen.”