Oil sands producers have begun to roll out a new suite of equipment designed to capture and capture and transport crude oil to market, with many of the same technologies used in pipelines to move natural gas.
The Alberta and Saskatchewan governments say they expect to begin commercial production in 2021.
The equipment is designed to be as cheap as natural gas and the process is similar to pipeline construction.
But there are some significant differences.
In the US, pipelines can take years to complete and deliver natural gas in the form of natural gas liquids, or LNG, to refineries.
Alberta and the US are expected to use a different method to get LNG to refiners.
The pipeline will use steam to separate the LNG from the oil and transport it by rail to refiner terminals in the US and Canada.
The US would also use a special technology to transport the crude oil by rail, rather than steam.
“We’re going to have to start talking about the logistics,” said Chris Prentice, president of the Alberta Energy Regulator.
“It’s a very complex technology.
The pipelines we have in place are very expensive.”
LNG can be transported to a refinery and the energy can be sold as LNG credits.
But that process involves drilling through the rock and drilling into the rock layers, which can add thousands of tonnes of material and can take months.
It’s also expensive to transport and store.
The new pipeline technology will be cheaper and quicker to build, with a cost of less than $3 a barrel, Mr Prentice said.
The federal government estimates the new pipeline would generate enough jobs to generate $3 billion in economic output.
The LNG process is expected to cost $3.5 billion to $4 billion, depending on the route.
“This will be the first Canadian LNG export project that’s been proven in this industry,” said John Dufour, vice-president of the North American LNG Association.
“The technology and technology integration is really promising and we’re looking forward to working with the government and the industry to make this a reality.”
In an interview with CBC News, Dr Dufoures said that the new technology was an improvement on existing technology, which could have a longer lifespan and be easier to install.
The technology would allow the Alberta and US governments to import crude oil from Canada to the US for export, with export terminals in both countries.
“Canada has been an important player in the LNNG market for a long time, but this is a game-changer for Canada and the world,” Mr Dufur said.
“I think it’s a game changer for Canada, because it’s the first time Canada is really exporting to the United States and exporting to a U.S. refinery, a U-shaped refinery, rather that a conventional refiner.”
The oil sands are the countrys second largest producer, after Saudi Arabia.
Alberta produces roughly 10 per cent of the world’s oil and has more than 80 oil sands projects under construction.
The province says its crude is priced to compete with other commodities, including natural gas, which is used to make diesel, jet fuel and other products.
The oilsands have long been considered a carbon bomb.
Canada has pledged to phase out coal-fired power by 2050.
Alberta has pledged not to emit more than 10 per per cent carbon dioxide in 2030, a pledge backed by a number of other provinces.
It also has a carbon tax that will raise money to offset emissions from the province’s oil industry.
The provincial government has also said it will not reduce the price of oil to meet its targets.