An Operator’s Guide to Regulatory Compliance in Canada’s Oil & Gas Sector

Canada’s oil and gas sector contributes to about 40% of the country’s methane emissions, making methane regulations an urgent opportunity and policy priority. Recently, in accordance with Canada’s 2030 Emissions Reduction Plan, the federal government published draft amendments supporting the country’s goal to reduce the oil and gas sector’s methane emissions 75% from 2012 levels by 2030. 
 
As Canada continues to outline a clear and achievable roadmap to meet its emissions reduction targets, it becomes imperative for operators to keep up, prepare and comply. Ahead of our upcoming Methane Mitigation Canada Summit in Calgary, from September 30 – October 2, we sat down with Jay Thanki, Systems Engineer at TC Energy to talk about regulatory compliance from an operator’s point of view. Read as he articulates his approach to regulatory compliance and reduction efforts, drawing inspiration from industries beyond the oil and gas sector. 
 
“When it comes to upcoming regulation, the key it to assume they’re going to be as stringent as possible and then work backwards.” 
 
Maryam Irfan, Industrial Decarbonization Network: To start, can you share a little about yourself and your role as Systems Engineer at TC Energy? 
 
Jay Thanki: I've been at TC Energy for about seven years now, with experience in various departments in Canada. Initially, I worked on projects focused on pipe integrity after which I moved to asset reliability and worked in the field in Winnipeg. Later, I transitioned to our Commercial Operations group, which I can best describe as air traffic control but for gas pipelines, involving very structured, minute-to-minute, day-over-day decision-making. 
 
Eventually, I found my way into the Energy Transition Department, working as a systems engineer, which is quite different as it requires long-term thinking about the future, like 2030, 2035, and even 2050. My work includes using systems thinking to anticipate how technology will impact our asset base and how we can operate more efficiently and responsibly. 

LISTEN: Episode 12: Navigating US Methane Rules with the American Petroleum Institute (API)
 
Maryam Irfan, Industrial Decarbonization Network: What, in your opinion, is the best way to approach and strategize for compliance in light of new/upcoming regulation? 
 
Jay Thanki: I find the best way to approach this is to think abstractly. Nobody knows what future regulations, or the state of technology will be down the line. Instead of setting expectations based on current assumptions, I find it useful to think a little differently. 
 
The oil and gas industry is known for lagging in new technology adoption, a fact widely recognized within the industry itself. Whereas industries like aerospace, defence, manufacturing, and automotive are extremely advanced and I've been learning from them because they face regulations as stringent as ours. By understanding and adapting their advanced practices, we can prepare ourselves better. 
 
This approach ensures that we are protected regardless of how future regulations unfold. If regulations become extremely stringent, we'll be ready. If they are more relaxed than anticipated, we will still have a system and solution that is compatible and efficient. 
 
Most of the industry has set their 2030 targets for reducing methane intensity, and many companies have stated their net-zero ambitions for 2050. So, I’ve put a pin in the calendar, imagining it's 2050 and then I think about what steps we would need to take to get there. Especially for 2030 targets, which is just five years away, I focus on percentage reductions and ask, "Have you reduced your emissions by 10%, 20%, or 30%?". This helps in creating a clear and realistic roadmap for achieving those targets. 
 
Maryam Irfan, Industrial Decarbonization Network: How do you prioritize reduction efforts and compliance considerations among other organizational needs and demands? 
 
Jay Thanki: This is a challenging task, but also the most rewarding. Organizations are extremely complex, and TC Energy operates in three different countries with nearly 7,000 employees. Thinking big picture is difficult because it comes top-down with targets that we must meet. Our organization is a complicated system where everyone has competing priorities and demands, but this is no different from competing for revenue, cost, or any other metric. 

At TC Energy, we're very committed to being the most efficient, responsible, and environmentally aware company we can be. However, working inside a corporation means that these goals are always competing with other objectives, and this is one big pipeline system. However, I've been finding some success by sticking to the fundamentals of the business. Our business is to move gas, and we function similar to a regulated utility, so the best approach is to focus on prudent asset management. Emissions are a lagging indicator of our operations and if we achieve operational excellence and operate systematically, our emissions will also be programmatic and systematic, making them easier to manage. 
 
Essentially, you have to consider the life cycle of all your assets and decisions that contribute to emissions. So, when we want to develop a solution, strategy, team, or program to address emissions, we need to ensure that everyone involved is already aware of the impact of their decisions. For example, a decision made six months ago might result in burning or venting methane, and by getting everyone on the same page and understanding the life cycle of their decisions, we can better manage and reduce emissions. 

READ: Attendee Insights on the Biggest Methane Mitigation Challenges and Investment Priorities
 
Maryam Irfan, Industrial Decarbonization Network: What are the key considerations companies should take into account when assessing new technologies amidst a rapidly changing regulatory environment? 
 
Jay Thanki: When everything is changing so quickly, it's best to focus on the constants. A mental tool I use is to imagine how we would run this pipeline without any technology, as if it were 1956 when the company first built the asset. Start with the technology of that time and consider how you would prioritize methane emissions. This simplifies the strategy as there are fewer moving parts. 
 
Then, I look at our current technology, such as computer systems that measure emissions, and automated systems, and integrate them into this simpler framework. While technology is advancing rapidly, it helps to remember that this has always been the case. 
 
It's easy to get lost in the allure of new, high-tech solutions, but the benefit of working in an industry that's less mature digitally is that we can adopt proven technologies that will work. Sometimes, using technology that’s already a decade old is sufficient as we don't always need the latest invention to solve our problems. Being a responsible engineer means making thoughtful decisions about technology and considering its entire lifecycle.  
 
Maryam Irfan, Industrial Decarbonization Network: In terms of reduction efforts, what are you currently prioritizing at TC Energy? 
 
Jay Thanki: TC Energy is a large gas pipeline operator with operations across North America. Our approach follows the principle that what gets measured, gets managed. We prioritize measuring and calculating our emissions accurately and understanding the business processes and workflows that contribute to these emissions. By doing so, we can effectively address and reduce them. 
 
As a regulated company, every cost we incur ultimately impacts our customers. Therefore, we must be prudent in identifying where we solve problems and make reduction efforts to ensure long-term solutions.  There are so many teams, departments, and individuals that are dedicated to reducing emissions, it’s difficult to pinpoint any specifics but at the system level, we aim to ensure that all these efforts are coordinated and not competing against each other. 
 
Maryam Irfan, Industrial Decarbonization Network: What has been the biggest challenge so far and can you share any best practices for overcoming these challenges? 
 
Jay Thanki: The biggest challenge is data management, and that is more of a commentary on the status of corporations in 2024. For example, in a large corporation that may have purchased assets or grown through acquisition or modernization, there’s a new set of technology and data every decade. Making sense of all this data and ensuring the organization is moving in the right direction should be the objective. 
 
Emissions touch everyone in the company at some point and so, understanding where emissions intersect with different parts of the company is key. In an established company that’s been functioning the same way for a long time, much knowledge is stored in people’s minds or hidden in documents. We need to centralize this information to make the best decisions. So, the challenge is keeping up to date with what data is, understanding current standards, and building a framework and solution around it. 
 
Calculating, quantifying, measuring, and detecting emissions at a single facility or point is relatively straightforward, but scaling these solutions across a large asset base is tough. The best thing to do is to follow International Organization for Standardization (ISO) standards and industrial automation standards because the technologies we use can be standardized, and the more standards we follow, the better. No solution is unique to a specific company, but their implementation is. 
 
I draw a lot of my inspiration from other industries, especially aerospace, which I'm particularly passionate about. The technologies they use to build the best planes and radar systems can also be applied to the oil and gas industry. This knowledge isn’t secret; it can be found in standards and textbooks, and by sharing these standards with others, we can create a community of like-minded people within the organization. 
 
Many of the problems in the oil and gas industry have already been solved by other industries. We just need to take inspiration from them and apply their solutions. 
 
Maryam Irfan, Industrial Decarbonization Network: How do you motivate your team to stay engaged and keep up to date with reduction efforts and regulatory changes to ensure the highest level of compliance? 

READ: Decoding the EU Methane Regulation for the Energy Sector
 
Jay Thanki: The answer to all my questions is to think holistically. In this case, it's about finding what motivates others and letting their own motivations drive them. For example, I am very interested in systems engineering, computers, data flow, and the big picture of how complex things get built. 
 
I've found a way to channel that passion into my interest in methane emissions. Other people have to find their own passions, whatever they may be. It's challenging to motivate people externally, so you need to ask them what they are interested in and create a space where diverse thoughts can thrive. The best part about all of this is how challenging the space is, and I love when you meet with a community of people who challenge one another. That's how you get to the truth the fastest. 
 
Emissions are what they are; they exist. I've never tried to convince people solely based on climate change or future predictions. If you ask me what I think will exist in 2050, it could be anything, which is why I don’t approach it as merely following government regulations because it is more than that.  
 
This approach brings the most creative ideas into the room, and people start to truly own their products, decisions, and work, making the process self-sustaining. 
 
Maryam Irfan, Industrial Decarbonization Network: I understand you will be attending and speaking at our upcoming Methane Mitigation Canada Summit in Calgary. What are you most looking forward to? 
 
Jay Thanki: I've only been part of the network for two years, but I've met so many fantastic people who have helped me think differently. When you work with your head down for long enough, you start to think the world isn't very large, but then you go to these events, talk with people, and realize we're all in this together, trying to solve the same problem. We really shouldn't compete on problem-solving; we should compete on executing the solution.  
 
I always come back from these conferences with a buzz and high energy. It's great to hang out with peers and talk about the world's problems and how we can solve them together. 
 
Looking for more?  
If you're tasked with reducing methane emissions within your operations, join over 150 of your industry peers at Canada's largest summit on reducing oil and gas methane emissions, the Methane Mitigation Canada Summit, taking place September 30 - October 2 in Calgary, Alberta.