July 19, 2026 to July 25, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning oil and gas production, wells, drilling, petroleum and fuels refining, pipelines, LNG, hydrocarbons, and all Landman fans. Once a week, we break down the most important updates in this space in under five minutes.

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📋 In This Week's Newsletter

• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week

Federal Government News

Consultation Opens on Draft Tax Measures, Including LNG and CCUS Incentives

On July 23, the Department of Finance Canada released draft legislative proposals for public consultation, targeting a wide range of tax measures. Key elements include amendments to the Investment Tax Credit for Carbon Capture, Utilization, and Storage (CCUS) to allow enhanced oil recovery storage eligibility at half the credit rate of geological storage, and reinstatement of accelerated capital cost allowances for eligible LNG equipment and related buildings at low-carbon LNG facilities. The draft also addresses simplified transfer pricing documentation for small taxpayers and small-scale intra-group transactions. Further provisions include technical amendments affecting foreign affiliate investment income and implementation of OECD recommendations on hybrid mismatch arrangements. Stakeholders and industry participants have until September 4, 2026 to submit feedback. The government aims to clarify tax rules and promote investment and clean growth through these legislative changes.

Sources: www.canada.ca

Construction Commences on $4B Enbridge Sunrise Expansion Program in B.C.

Natural Resources Canada announced on July 20 that construction is underway for the Sunrise Expansion Program, part of Enbridge’s Westcoast natural gas pipeline network in British Columbia. The project, valued at $4 billion, will add up to 300 million cubic feet per day of natural gas transportation capacity. The development supports LNG export facilities, including the Woodfibre LNG plant, and is expected to contribute over $3 billion to GDP, generate 2,500 jobs, and supply $700 million in tax revenue. The program employs Canadian steel and follows ongoing partnerships with 38 Indigenous communities, which acquired a 12.5% ownership stake in the Westcoast pipeline system backed by a federal Indigenous Loan Guarantee. The expansion aligns with Canada’s objectives to strengthen energy security, diversify exports, and foster domestic industrial supply chains.

Sources: www.canada.ca

Canada and UAE Conclude Comprehensive Economic Partnership Agreement Negotiations

Global Affairs Canada confirmed on July 24 the conclusion of negotiations for a Canada-UAE Comprehensive Economic Partnership Agreement (CEPA). The agreement intends to strengthen bilateral trade and investment, reduce trade barriers, enhance supply chain resiliency, and increase market access for Canadian businesses. Minister Maninder Sidhu met with UAE Foreign Trade Minister Dr. Thani bin Ahmed Al Zeyoudi in Toronto, reiterating Canada’s commitment to expanding its international commercial partnerships. The CEPA expects to create new opportunities for Canadian and UAE companies in both jurisdictions. Industry leaders and investors discussed prospects at a round-table hosted by the Canada-UAE Business Council, with further discussions scheduled at the Canada Investment Summit in September.

Sources: www.canada.ca

Canada Formalizes Green Shipping Corridor MoU with Spain

Transport Canada announced that Minister Steven MacKinnon signed a Green Shipping Corridor Memorandum of Understanding with Spain in Madrid on July 23. The MoU, which already includes Germany, supports the development of the Atlantic Green Shipping Corridor and aims to strengthen international trade, competitiveness, and supply chain resilience. The agreement promotes collaboration among major ports, fuel producers, and technology providers, emphasizing clean fuel and port infrastructure innovation in the marine sector. These corridors focus on facilitating cleaner fuels, modernizing port operations, and enabling fuel trade between Canada, Europe, Asia, and the Middle East. The initiative complements Canada’s broader maritime emissions reduction strategy and is positioned to create new business opportunities in fuel production, supply chain logistics, and shipping.

Sources: www.canada.ca

Monthly Natural Gas Supply and Disposition Data Released for May 2026

Statistics Canada published data covering natural gas transmission, storage, and distribution for May 2026. The information provides updated insight into Canadian supply chain movements, storage volumes, and downstream distribution relevant to the gas sector. Access to this data aids industry participants in analyzing ongoing operational trends and market conditions.

Sources: www.statcan.gc.ca

Advance Indicator Shows Petroleum and Coal Sales Decreased in June

Statistics Canada’s advance estimate for manufacturing sales in June 2026 indicates a 0.1% month-over-month decline, primarily driven by reductions in the petroleum and coal product subsector. Excluding petroleum and coal, total manufacturing sales increased by 2.2%. The preliminary data suggests lower demand or production in oil-refining operations compared to other manufacturing segments.

Sources: www.statcan.gc.ca

Industrial Product and Raw Materials Price Indexes Decline in June

StatCan reports a drop in the Industrial Product Price Index of 1.4% month over month in June 2026, though the index gained 12.4% year over year. The Raw Materials Price Index decreased 6.9% for the month but increased 20.7% year over year. The monthly declines indicate a short-term easing in cost pressures for input materials used in oil, gas, and petroleum production.

Sources: www.statcan.gc.ca

Monthly Energy Transportation and Storage Data for May 2026 Available

StatCan released data on the transportation and storage of crude oil and petroleum products for May 2026. Operators can leverage this information to assess flows and inventory levels for crude and refined oil products.

Sources: www.statcan.gc.ca

Monthly Mineral Production Survey Reports May 2026 Results

Statistics Canada has made available the May 2026 results of the Monthly Mineral Production Survey and the Survey of Smelters and Metal Refineries. The survey covers outputs for mineral and metal products, relevant for upstream extraction and refining industries.

Sources: www.statcan.gc.ca

Refined Petroleum Product Inventory Data Released for June 2026

Statistics Canada announced that June 2026 data on the production and inventories of refined petroleum products is now available upon request. This data supports operational and market analysis in the petroleum refinery sector.

Sources: www.statcan.gc.ca

Provincial Government News

B.C. Government Enables Accelerated Expansion of Tilbury LNG Facility

British Columbia issued an Order in Council exempting FortisBC’s Tilbury LNG Facility Phase 1B expansion from the need for a Certificate of Public Convenience and Necessity. The $2 billion project aims to expand LNG marine fuelling capacity at the Port of Vancouver, increase jobs, and provide First Nations ownership participation. The province anticipates construction to start in mid-2027, with completion as early as 2031.

Sources: news.gov.bc.ca

Quebec Maintains Support for Renewable Source Gas Sector Reforms

Quebec will review proposed amendments to the Regulation concerning renewable source gas, targeting increased local production and reduced reliance on imported renewable gas. The Energy Board will recommend regulatory and tariff solutions.

Sources: www.quebec.ca

Alberta Penalizes Oilfield Services Company After Workplace Injury

Par Energy Services Inc. was fined $100,000 after pleading guilty to a workplace injury incident near Rocky Mountain House involving Savanna Drilling Corp. The penalty supports the Matthew Schwartz Memorial Endowment Fund for workplace safety scholarships.

Sources: www.alberta.ca

Alberta MLAs to Advance Trade and Energy Priorities at National Conference in Chicago

MLAs Angela Pitt, Glenn van Dijken, and Chelsae Petrovic are attending the NCSL Legislative Summit from July 25 to July 30 to promote Alberta’s interests in barrier-free trade, supply chain security, and North American energy markets.

Sources: www.alberta.ca

What We're Reading This Week

• Enbridge starts construction on B.C. pipeline expansion for natural gas: Coverage of the $4-billion Sunrise Expansion pipeline project in British Columbia.
• Bay du Nord could be Canada's largest offshore oil project. Now a major partner has pulled out: Report on partnership changes at the Bay du Nord offshore oil project.
• Canada’s pipeline ghosts: How new routes revive old ideas: Analysis of new pipeline routes reviving historical infrastructure concepts.
• B.C. government allows accelerated expansion of the Tilbury LNG fuel facility: News article on regulatory changes supporting Tilbury LNG facility expansion.
• Opinion: With his Iran war folly, Trump emerges an unlikely clean-energy champion: Commentary on US political developments influencing clean energy sector.

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