Financing:

• The Alberta government is investing over $20MM through the Alberta Petrochemicals Incentive Program to support Rocky Mountain Clean Fuels’ synthetic diesel facility in Wheatland County. The plant will use natural gas and natural gas liquids to produce synthetic diesel, naphtha for gasoline blending and diluent, and Fischer Tropsch wax for industrial applications like adhesives and coatings.

• KMC Mining Corporation, an Alberta-based company focused on mine development and land reclamation, filed an NOI on December 5, listing $221.9MM in liabilities. The filing follows the sudden termination of its largest contract with Suncor Energy (TSX:SU), leaving KMC unable to meet obligations. Proceedings aim to stabilize the business, monetize assets and explore recourse against Suncor for the termination. FTI is the trustee.

Other

• The Municipal District of Greenview has partnered with O'Leary Ventures to develop off-grid natural gas and geothermal power infrastructure in Greenview, AB for an AI data centre industrial park. The Wonder Valley project is estimated to command a US$2B investment in phase 1, with over $70B in total investment over the project lifetime.

• OPEC lowered its oil demand growth forecasts for 2024 and 2025, citing weaker demand in China, India and other regions. The group now expects 2024 demand to grow by 1.61MM bbls/d, down from 1.82MM and 2025 growth to slow to 1.45MM bbls/d. The revisions reflect bearish Q3 data, including a year-on-year decline in Chinese demand of 81,000 bbls/d in October.

• The IEA forecasts global oil demand growth to rise from 840,000 bbls/d in 2024 to 1.1MM bbls/d in 2025, reaching 103.9MM bbls/d. Petrochemical feedstocks will drive increases, while transport fuel demand remains constrained. Emerging Asia, despite slowing Chinese growth, will lead gains. Global oil supply rose 130,000 bbls/d in November to 103.4MM bbls/d and is set to grow by 1.9MM bbls/d in 2025, reaching 104.8MM bbls/d.

• Canada has set a new target to cut carbon emissions by 45–50 per cent below 2005 levels by 2035, requiring a 41 per cent reduction in the next decade.

• The Bank of Canada cut its benchmark rate by 50 basis points to 3.25 per cent, marking a second consecutive outsized reduction and the fifth consecutive rate reduction since June 2024.