Macquarie Energy Canada Ltd., using a virtual market, is expanding the ethically produced natural gas trade, aka responsibly sourced gas (RSG), with the sale of British Columbia (BC) production to Montreal-based distribution company Energir.

Montney

The Macquarie unit used a virtual market created by Xpansiv CBL Holding Group (XCHG), trademarked as the Xpansiv Digital Fuels Registry, to make the deal for supplies from Calgary-based gas producer Pacific Canbriam Energy Ltd.

The digital registry “is an important innovation that establishes unprecedented levels of transparency and detail, which will further catalyze the certified natural gas market,” said Macquarie senior managing director Craig Fisher. 

Pacific Canbriam qualified for the supply deal by earning the RSG brand. The brand was devised by New York City-based Equitable Origin and trademarked as EO100TM Standard Certification. There are other types of certification processes for RSG too.

“The certification marks the beginning of a new, more transparent era of natural gas development in Canada where we show the world that resources are, and will continue to be developed to the highest standards of environmental and social responsibility,” said Pacific Canbriam President Paul Myers.

Pacific Canbriam, which taps Montney Shale natural gas in northeastern BC, is the second Calgary firm that has qualified for a sale into Energir’s Responsible Procurement of Natural Gas program by earning the EO100TM label. Pacific Canbriam is set to supply feed gas to the under-development Woodfibre LNG project on the BC Coast. Both Woodfibre LNG and Pacific Canbriam are subsidiaries of Pacific Oil & Gas Ltd.

Calgary-based Seven Generations Energy Ltd. (7G) in April 2020 scored the first breakthrough into the RSG brand. 7G merged with Montney producer Arc Resources Ltd. in February.

As environmental scrutiny grows, so does demand for ethically sourced oil and gas. Carrying the RSG label is said to be central in expanding the international liquefied natural gas (LNG) export trade. 

The “milestone transaction” with Pacific Canbriam “marks significant progress toward reaching our target of contracting 100% of our system gas supply through our initiative for the Responsible Procurement of Natural Gas by 2030,” said Energir gas supply director Vincent Regnault.

The Montney is considered paramount to supplying gas for Canada exports, including the Royal Dutch Shell plc-led LNG Canada project underway in Kitimat, BC. TC Energy Corp.’s Coastal GasLink initially would transport more than 1.7 Bcf/d from the Montney, Horn River and Cordova basins. 

XCHG, an international firm headquartered in Sydney, Australia, crafted the digital trading floor for products from firms with environment, society and governance (ESG) investment credentials.

Energir said its gas supply policy is designed “to promote business relations with proactive and responsible gas producers who are committed to being transparent and have demonstrated leadership” in ESG best practices.

To earn the EO100TM brand, producers and distributors have to comply with performance benchmarks for public disclosure, labor standards, finance, field practices, environment safeguards and relations with communities and native tribes.

Energir is a power on the consumer side of the Canadian gas market, as the top Quebec distributor that serves 525,000 customers through 10,000 kilometers (6,000 miles) of pipelines.