Our Business

CanaGas is currently preparing to conduct proof-of-design testing of its innovative 15-Bar pressure vessels. On the successful testing (two burst and two cyclic fatigue) of these 10,000 litre tanks, designed by HyperComp Engineering, Salt Lake City, Utah, it will then certify its intermodal 15-Bar transport system which, consists of 3 tanks nested inside of a 40-foot intermodal container. The certification testing of this patented technology will conform to ISO 17519. This will provide for the permitting of the CanaGas system all over the world. CanaGas is currently seeking equity investors to complete the proof-of-design testing, then certification.

The initial business of CanaGas will be to purchase, transport and, resell propane using its innovative and patented type-4 intermodal transport system. It will do so through a subsidiary trading company yet to be established. The first market entries will be to retail distributors in British Columbia, Manitoba, and Ontario. Then the Western and Central-North United States. The value proposition is significant as Alberta produces the lowest cost propane in the world and, the cost of a 15-Bar CanaGas 40-foot container is about half that of a conventional stainless-steel-based trailer. Due to the lightweight nature of the CanaGas system, the said intermodal container can transport 16 metric tonnes of propane directly to existing wholesale and retail distributors using existing intermodal infrastructure (rail and then truck). 

To fabricate its 15-Bar tanks and transport systems, CanaGas will avail of its current technology development partners. For the HDPE liners, CanaGas will use its supply partner, QMP Plastics, located in Saskatoon, Saskatchewan. Using the HyperComp Engineering design, CanaGas will have these liners wrapped with continuous strands of fibreglass in a vinyl ester matrix. This process is planned at an existing facility located in Edmonton Alberta. It will then assemble the completed pressure vessels into 40-foot intermodal containers. CanaGas has yet to select an assembly partner to fabricate the required piping and conduct the assembly of its tanks into its containers. However, there are hundreds of such firms in Alberta to select from.    

As soon as possible, CanaGas will establish its own filament winding facility in central Alberta. The new facility, will be owned by a subsidiary company of CanaGas (yet to be established), and a winding partner that has significant experience in the filament winding of pressure vessels. For current confidentiality reasons, that winding partner is not named herein.   

The second commodity to be transported / exported will be LPG (butane with propane). Once again, Alberta gas plants and refineries produce the lowest cost LPG in the world. The initial target markets for LPG are Japan, China, and South Korea. These three countries currently have the highest LPG prices in the world. As soon as practical, CanaGas will then charter its own containership(s) to deliver propane and LPG to these high-value markets. Another potential for CanaGas Trading is the shipping of LPG to Mexico where 80% of the population uses LPG to drive vehicles, cook food, and heat their homes. LPG for the Mexican markets would come from Alberta or the much closer US Gulf Coast hub at Mount Belvieu, Texas. 

For clean fuel supplies to mines and remote communities in the North, CanaGas will transport a mixture of ethane and propane from gas plants located in Northern Alberta and British Columbia.   

The next transport system likely to be added to the CanaGas arsenal (market potential dependant) will be the 7.5-Bar system. This gaseous fluid transport system will be relatively easy to certify as it only requires half the number of windings used to fabricate the CanaGas 15-Bar tanks, same liner design. The planned certification of the 7.5-Bar system will be a much shorter process as it is considered a variant and not a new design. This system will transport a variety of gaseous fluids including methanol, DME, ammonia, diluent used to help transport heavy oil by pipeline, and then heavy oil (without diluent) from Alberta to the US Gulf Coast, an area which contains the highest concentration of heavy oil refineries in the world. These refineries are now desperate for new heavy oil supplies as those from Venezuela have gone to zero and those from Saudi Arabia have significantly diminished due to competing demand.     

Containers designed for heavy oil transport to the US Gulf Coast will be structurally enhanced to provide for a very high level of impact resistance. It is anticipated these containers will be able to withstand a high-speed crash and not leak any oil. The discharge of this oil, volume comparative, would take less than half the time it currently takes to off-load from thin-shelled rail tanker cars.  

The next transport system to be added to the CanaGas line-up will be the 40-Bar intermodal transport container. This transport system will safely store and transport ethylene, ethane, or liquid CO2. Refrigeration is NOT required for either substance. Currently, ethylene is cryogenically chilled to -100 C and transported in T-75 ISO frames. This is an expensive transportation method, but currently the only one available to the industry. Once again, Alberta produces the lowest cost ethylene in the world. The largest markets for ethylene are in Eastern Asia and Western Europe. The 40-Bar tanks required in these transport systems will be wound with carbon fiber to provide for reduced weight and production time. 

Finally, 100-Bar carbon fiber tanks will be certified, same liner still. These tanks are intended for the transport and export of pressurized liquefied natural gas (P-LNG).  As the production and storage of P-LNG in CanaGas tanks do not require temperatures lower than -70 C, only dehydration of the gas is required. This is in stark contrast to conventional LNG as the gas required to make LNG has to be stripped of all contaminants to less than 50 parts per million or 0.005%. To attain the same density of liquified natural gas as P-LNG, the said contaminants  (bar water) can stay in the gas stream without concern. As such, the CAPEX for P-LNG production is approximately 10% that of conventional LNG (per tonnes per day). The OPEX is between 25% and 30% of conventional LNG, recently verified by a third party process engineering firm. The said contaminants noted above are CO2, C3-plus, nitrogen, traces of H2S (less than 200 ppm), and water. 

The market opportunities for P-LNG transport and export are so numerous, CanaGas cannot list them all in this overview. Below are a few of the potential projects under consideration. 

Export P-LNG to Japan from Alberta,14 tonnes of P-LNG in a 40-foot shipping container, and return with liquid CO2 for sequestration to the Alberta Hub, 19 tonnes in the same container. The 19 tonnes of sequestered CO2 would be approximately 50% of the CO2 produced from the burning of 14 tonnes of natural gas. 

Another planned project is the collection and sales of renewable natural gas (RNG) from remote locations such as farms and forestry operations. RNG is currently the fastest growing renewable source of energy in North America. As the production of P-LNG is easily scalable, the simplistic CanaGas process can cost effectively transport RNG to existing or new markets. The first planned RNG project is actually in Japan.  

The potential projects that are of particular interest to CanaGas involve the shipping of P-LNG produced from natural gas currently being re-injected off the coast of Newfoundland and Labrador to Europe. According to the CNLOPB, the Whiterose project is currently re-injecting approximately 100 MMscf per day of rich gas. The Hibernia project is re-injecting about 270 MMscf per day of very rich gas. Using 2500 containers permanently installed on a modified 6000 TEU containership (1980s capacity design), such a system will be able to discharge  approximately 1.8 BCF of natural gas. At the current European wholesale price of $15 per MMBtu, the cargo would be worth $27 million (US). After discharging the gas through an offshore morning buoy into an existing subsea transmission line, the P-LNG shuttle ships would then return to the Island of Newfoundland to offload the remaining NGLs, segregated into selected containers at lower elevations, for additional value adding (separation into individual commodities), change of crew, and ship supply replenishment. Turn-around time would be 14 to 18 days, depending. Such a new gas fuelled shuttle ship, complete with 2.0 BCF of capacity, is estimated to cost approximately $350 million (US). 

There are also major opportunities in India, Indonesia, the southern third of Africa (from Mozambique), Australia, Brazil, Guyana, Columbia and, Bolivia.