Category Archives: Canada

Canada to Build Oil Pipeline to Serve Asia

‘The U.S. market will not be large enough to accommodate all of Canada’s oil exports,’ said Natural Resources Minister Joe Oliver.

Canada is scrambling to build an expansive new oil pipeline network to reach new markets including Asia as its sole customer, the United States, hikes production, aiming to become the world’s top exporter.

Canada holds the third-largest oil reserves in the world but 98% of its oil exports and 100% of its natural gas shipments go the United States. This has made Canada the top energy supplier to its neighbor.

But that could soon end.

The United States is seeing a boom in shale gas and offshore oil production as it strives for energy independence, and the International Energy Agency recently said the U.S. could become the world’s top oil producer by 2020.

This week, Canada’s Natural Resources Minister Joe Oliver urged a fix: build more pipelines to move oil from landlocked Alberta province to both refineries in eastern Canada and the Pacific coast to fill tankers bound for Asia.

“The U.S. market will not be large enough to accommodate all of Canada’s oil exports,” Oliver said.

“By 2035, Canadian oil exports will be 4 million barrels per day, but total US imports will only be 3.4 million barrels per day. This highlights the need for Canada to access new markets,” Oliver added.

The federal government has put its weight behind several new pipeline projects, but the initiatives face stiff opposition from environmentalists and regional authorities.

“We’re already lacking outlets for the oil now being produced — existing pipelines are at capacity,” said Marco Navarro-Genie, a researcher at Calgary-based Frontier Centre for Public Policy.

“We’re forced to sell our oil at $22 below market value because we can’t get it to any market outside of North America,” Navarro-Genie said.

READ MORE: http://www.industryweek.com/energy-management/canada-build-oil-pipeline-serve-asia

 

Pembina Pipeline Corporation Plans Capital Spend of $965 Million in 2013

Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL; NYSE: PBA) announced that its Board of Directors has approved a capital spending budget of approximately $965 million for 2013. This is approximately 75 percent higher than Pembina’s 2012 capital budget and represents the largest in the Company’s history.

“2013 will mark the third consecutive year that Pembina has increased its capital program, again setting a record for the size of our investment,” said Bob Michaleski, Chief Executive Officer. “This impressive capital spending plan is directly aligned with our goal of continuing to provide long-term value to our shareholders, with the vast majority of our 2013 investments being targeted towards fee-for-service projects. Our focus in the next year will be to progress our current suite of projects and bring in the next phase of Pembina’s growth opportunities while maintaining a strong balance sheet and increasing our cash flow per share.”

A substantial portion – $240 million, or about 25 percent – of the 2013 capital spend will be directed towards completing the construction of the Company’s Saturn and Resthaven enhanced liquids extraction facilities along with the associated pipelines. These projects will provide extraction of natural gas liquids (“NGL”) in the field for producers located in west central Alberta.

Pembina also plans to direct $210 million, or 22 percent of its 2013 capital budget towards the expansion of its crude oil, condensate and NGL pipelines. These expansion projects will allow Pembina to continue to meet the growing needs of producers, which has resulted from new technology being deployed and increased activity in the Western Canadian Sedimentary Basin.

Pembina’s 2013 capital spending plan reflects strong growth opportunities that expand on existing operations in each of its four businesses and is expected to continue to drive shareholder value in the coming years.

SOURCE: http://www.sacbee.com/2012/11/28/5016826/pembina-pipeline-corporation-plans.html 

Enbridge gets nod for Alberta pipeline

CALGARY, Alberta, Nov. 26 (UPI) — Canadian pipeline company Enbridge announced it reached an agreement with shippers for the expansion of an oil pipeline in Alberta province.

Enbridge said it agreed to terms for a $1.8 billion expansion to its pipeline system between Edmonton and Hardisty, Alberta. The expansion envisions a 2015 capacity target of 800,000 barrels per day.

The company said the new line agreements would fall within its competitive toll agreement and include a 25 cent surcharge on shipments.

“The agreement with shippers on terms for the expansion continues our collaborative relationship, ensuring that we provide the facilities and services they need to maximize the value of their crude oil,” Stephen Wuori, president of liquid pipelines for Enbridge, said in a statement.

Enbridge aims to build the twin Northern Gateway pipeline from oil sands operations in Alberta to ports along Canada’s west coast. Critics of tar sands oil, the type of crude found in Alberta, say there are concerns about the environmental consequences associated with pipeline developments.

Enbridge said the Edmonton to Hardisty line should begin construction by 2014 once it gets full support from the government.

SOURCE: http://www.upi.com/Business_News/Energy-Resources/2012/11/26/Enbridge-gets-nod-for-Alberta-pipeline/UPI-47511353934923/#ixzz2DLctvybr

Alberta to include public in safety review of its energy pipeline network

EDMONTON – Alberta plans to broaden a safety review of its vast energy pipeline network to include input from the public.

The province’s energy regulator hired a company in September to conduct a technical review of pipeline safety, spill response plans and the security of pipelines that cross water.

Energy Minister Ken Hughes says after that report is complete at the end of the year, the government will ask Albertans for their views on pipeline safety.

“We do want to engage everybody who has something constructive to contribute to this so there will be wider consultations in the new year,” Hughes told The Canadian Press in an interview.

The Alberta government asked for the technical safety review last summer following three pipeline-related spills.

In one of those spills, is a pipeline that leaked about 475,000 litres of oil into the Red Deer River, a major drinking water source for central Alberta.

Since July, more than 50 environmental, conservation, land rights, unions First Nations and other groups have been calling on Alberta to include the public in its pipeline safety review.

Greenpeace spokesman Mike Hudema praised the government’s decision to open up the review process to the public, but said its success will depend on its willingness to share information and to really listen to people’s concerns.

“I’m glad that the public is finally getting a chance to have their say,” Hudema said Thursday.

“Of course, it remains to be seen as to how much of a say they will have, how much their feedback will be incorporated in the actual decisions, or whether this is really just a public relations exercise.”

The Energy Resources Conservation Board hired Group 10 Engineering Ltd. of Calgary to conduct the technical review.

The company is to hand in a report to the board by the end of the month. The ERCB is to then submit the report, including its own conclusions, to Hughes by the end of the year.

Group 10 officials say under the terms of the contract, the company is strictly focusing on reviewing pipeline regulations, policies and best technical practices around the world. Consulting with the public is not part of its job.

“For this process to be effective, we have to be very guarded in how we engage people because it could turn out to be a mud-slinging, political, publicized nightmare. So we have to be cautious,” Group 10 director Daryl Foley said from Calgary.

Alberta is criss-crossed by a network of more than 400,000 kilometres of provincially regulated oil and natural gas pipelines, many of them up to 40 or 50 years old.

Hughes said the report will be made public in the new year and its findings will be the subject of the public consultations. He gave no timeline on when more details of the public review will be released or when it will start.

The final goal will be to determine whether or not the pipeline industry is performing to the best world standards and to come up with science-based solutions to fix any problems if it isn’t, Hughes added.

He also said the government will not allow the public consultation to delay the review process, which it hopes will reassure people in the province and around the world.

“Pipeline safety is important, not just to Albertans with respect to how pipelines perform. Pipeline safety and performance is also an important element of our social licence to operate as viewed by other Canadians and people living outside of Canada.”

“We all, as Albertans, have a concern that the pipeline industry is performing at its highest level possible. That expectation is set, not just by people who are technicians, but also by ordinary people like you and me who want to have input into policy process.”

Hughes said the government hasn’t decided how it will consult with the public, or whether the process will include public meetings or hearings.

SOURCE: http://thetyee.ca/CanadianPress/2012/11/01/Alta-Pipeline-Safety-Review-20623047/

TransCanada lands second pipeline deal in Mexico

CALGARY — Mexican authorities have awarded TransCanada Corp. another natural gas pipeline contract.

The Calgary-based company said Monday that it will invest about US$400 million in a 413-kilometre pipeline between El Oro and Mazatlan, near Mexico’s west coast.

The 61-centimetre-diameter pipeline has a contracted capacity of 202 million cubic feet a day and is expected to be in service in the fourth quarter of 2016, TransCanada said.

The Mazatlan pipeline will connect with the US$1-billion Topolobampo pipeline that TransCanada was awarded last week.

TransCanada will build, own and operate the two new pipelines through its Mexican subsidiary, Transportadora de Gas Natural del Noroeste.

Both projects are supported by 25-year natural gas transportation service contracts with the Comision Federal de Electricidad, or CFE, Mexico’s federal power company.

“We are pleased to be working with the government of Mexico on new natural gas infrastructure that will bring its cleaner-burning natural gas to businesses and residents,” said TransCanada president and CEO Russ Girling.

“These new projects build on our experience developing safe and reliable pipelines in Mexico and across North America.”

TransCanada already has one of North America’s largest networks of gas and oil pipelines, including two natural gas lines already operating in central Mexico. The company built, owns and operates the Guadalajara and Tamazunchale natural gas pipelines in central Mexico and will soon break ground on a Tamazunchale pipeline extension.

Besides is network of some 68,500 kilometres of natural gas pipelines that tap into virtually all major gas supply basins in North America, TransCanada is also developing one of North America’s largest oil delivery systems, including the controversial Keystone XL pipeline designed to transport Canadian crude to refineries on the Texas Gulf Coast.

The company began work this summer on a US$2.3-billion crude pipeline connecting an oil storage hub at Cushing Okla., to Texas refineries that is expected to start up in 2013. The Gulf Coast pipeline was initially part of TransCanada’s $7.6-billion Keystone XL proposal but has been held up by political and environmental wrangling in the United States.

Meanwhile, TransCanada is also one of the continent’s largest providers of gas storage and related services with approximately 380 billion cubic feet of storage capacity and has interests in more than 10,900 megawatts of power generation in Canada and the United States.

SOURCE: http://business.financialpost.com/2012/11/05/transcanada-lands-second-pipeline-deal-in-mexico/

Sunshine Oilsands Plans $3.5 Billion in Capital Investment

China-backed Sunshine Oilsands Ltd. has budgeted about US$3.5 billion for capital investment in its Canadian oil-sands projects at a time when investors are on edge about the investment climate in energy-rich Canada.

The Calgary-based energy company’s projects are still in a preliminary stage, but it is aiming for its first production in the fourth quarter of 2013, with output of 5,000 barrels a day by mid-2014, Co-Chairman Shen Songning said in an interview.

Mr. Shen’s optimism about the projects—based in Athabasca Sands, Alberta—comes at a tense time for Chinese and other foreign investors hoping to capitalize on Canada’s huge reserves of oil and natural gas, much of which are expensive to extract as they are trapped in oil-sands deposits or in shale-rock formations.

Last month, the Canadian government turned down a US$5.18 billion bid by Malaysia’s state-run Petroliam Nasional Bhd., or Petronas, to acquire Canada’s Progress Energy Corp. The bid isn’t dead, however, as the two sides have agreed to resume talks on the purchase.

Next week, the government is expected to rule on the US$15.1 billion purchase of Canada’s Nexen Inc. NXY.T +0.78% by China’s Cnooc Ltd. 0883.HK +1.24%

The two deals are a litmus test for Canada’s aspirations to develop its oil and gas reserves and find new export markets at a time when its main buyer, the U.S., is cutting energy imports due to the success of shale projects there.

“Conventional oil supply is in demand and global production is expected to transition toward unconventional sources,” said Mr. Shen. “We see Canada’s oil sands playing a major role in meeting the needs of the world’s growing crude demand.”

Oil sands—a mix of sand and tarlike ultraheavy crude oil called bitumen—are costly to refine, but higher crude prices in recent years have made production from oil sands more feasible. Canada’s oil sands will likely account for 4.4% of global crude-oil output by 2035, up from 1.6% in 2009, the International Energy Agency has said.

Mr. Shen said the US$3.5 billion expenditure will be funded by cash flow from existing projects and potential energy joint ventures, as well as bank loans and proceeds from Sunshine Oilsands’ Hong Kong initial public offering in March. Possible joint-venture investors include China sovereign-wealth fund China Investment Corp. and China oil company China Petrochemical Corp., also known as Sinopec Group.

The company’s oil-sands projects can achieve positive cash flow per barrel when West Texas Intermediate prices are above US$50 a barrel, Mr. Shen said.

“We see oil prices hovering around US$100 a barrel over the next three to five years as demand for oil is rising on the back of strong economic growth in Asia,” he said. He didn’t specify whether he was referring to benchmark West Texas Intermediate or Brent crude.

He also said the company’s operations could benefit from falling natural-gas prices, because fuel costs account for 20% of Sunshine Oilsands’ total production expenses.

Sunshine Oilsands, which raised $579 million from the Hong Kong IPO, is planning a secondary listing in Toronto in the fourth quarter to increase shareholder value. The company’s share price has fallen 46% in Hong Kong since the stock’s debut.

“Our current share prices are extremely undervalued,” Mr. Shen said, adding the company’s net asset value per share is at 21.40 Hong Kong dollars (US$2.76). Shares in Sunshine Oilsands closed at HK$2.62 on Thursday.

In response to the decline in its share price, Sunshine Oilsands recently announced a $50 million share-repurchase program.

SOURCE: http://online.wsj.com/article/SB10001424052970204712904578092052566429508.html

TransCanada to invest $1-billion in Mexican natural gas pipeline

TransCanada Corp. plans to invest about $1-billion (U.S.) in a new natural gas pipeline in Mexico.

The Calgary-based pipeline giant announced Thursday that it has been awarded a contract to build, own and operate the pipeline by Mexico’s federal power company, the Comision Federal de Electricidad or CFE.

The 530-kilometre-long El Encino-to-Topolobampo pipeline will have a contracted capacity of 670 million cubic feet per day and is supported by a 25-year natural gas transportation services contract.

“Mexico’s government is engaged in a comprehensive plan to expand the nation’s electrical grid and generating capacity and much of that generation will be natural gas fired,” TransCanada president and CEO Russ Girling said in making the announcement.

“This award is another example of TransCanada’s commitment to help develop Mexico’s energy infrastructure in a sustainable and cost-efficient manner.”

The Topolobampo pipeline begins in El Encino, in Chihuahua state, and terminates in Topolobampo, in Sinaloa state, interconnecting with other pipelines that are expected to be built as a result of separate bid processes by the CFE.

Mr. Girling said TransCanada is bidding on a number of CFE proposals. The company has already built and is operating the Guadalajara and Tamazunchale pipelines and will soon break ground on a Tamazunchale pipeline extension.

TransCanada operates a network of natural gas pipelines that extends more than 68,500 kilometres and tap into virtually all major gas supply basins in North America. It is also developing one of North America’s largest oil delivery systems.

The company began work this summer on a $2.3-billion crude pipeline connecting an oil storage hub at Cushing Okla., to Texas refineries. It’s expected to start up in mid to late 2013.

The Gulf Coast pipeline was initially part of TransCanada’s $7.6-billion Keystone XL proposal, which would have sent Alberta crude to the Gulf via six U.S. states but has been held up by political and environmental wrangling in the United States.

SOURCE: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/transcanada-to-invest-1-billion-in-mexican-natural-gas-pipeline/article4809829/

TransCanada Plans $3 Billion Oil-Sands Line With PetroChina

TransCanada Corp. (TRP) and a unit of PetroChina Co. Ltd. agreed to develop a C$3 billion ($3 billion) oil pipeline to ship crude from oil-sands projects in northern Alberta.

TransCanada and Phoenix Energy Holdings Ltd. will each own 50 percent of the proposed Grand Rapids Pipeline, which will ship oil 500 kilometers (310 miles) from the Fort McMurray oil- sands production area to Edmonton, according to a statement today. The stake would be the largest taken by a Chinese company in a Canadian pipeline, according to data compiled by Bloomberg.

“This is the first major pipeline project to meet the needs of this fast-growing area,” TransCanada Chief Executive Officer Russ Girling said in the statement.

The plan includes a 900,000 barrel-a-day crude pipeline, and a 330,000 barrel-a-day pipeline for diluent, fluids mixed with tar-like bitumen so it can flow through pipelines. The project is expected to be in service by 2017.

“Transportation in the Athabasca region has become a bottleneck,” Zhiming Li, the chief executive officer of closely held Phoenix, said in the statement. “This transportation solution will be important to Phoenix and other potential producers in the area to monetize their huge resources.”

TransCanada will operate the system and Phoenix has agreed to ship crude on it.

Phoenix is a unit of publicly traded PetroChina, controlled by Chinese state-owned China National Petroleum Corp., according to filings. CNPC owns a controlling interest in PetroChina. Margaret Jia, a spokeswoman for CNPC companies in Canada, didn’t immediately return telephone calls seeking comment.

Read More Here:

TransCanada gets Keystone XL win in Texas

A state judge in Texas ruled that Canadian pipeline company TransCanada can move ahead with pipeline construction in the south of the state.

TransCanada aims to build its Keystone XL pipeline to carry oil derived from oil sands operations in Alberta. Part of the U.S. section of the project would move crude oil across southeastern Texas to refineries along the southern coast.

Texas landowners sued TransCanada, saying property easement bonds weren’t posted according to the letter of the law. The company, however, increased the size of the bonds meant to cover potential damage and a judge gave the company consent to move forward in Texas.

“The statutory requirements for the issuance of writs of possession are now met,” Jefferson County Court at Law Judge Tom Rugg was quoted by Bloomberg News as saying.

TransCanada in July received the last of three permits needed from the U.S. Army Corps of Engineers to advance its 485-mile Gulf Coast Project, the domestic leg of Keystone XL.

The Gulf Coast Project will stretch from Cushing, Okla., to southern Texas. Another 47-mile project would transport oil to refineries in Houston.

SOURCE: http://www.upi.com/Business_News/Energy-Resources/2012/10/01/TransCanada-gets-Keystone-XL-win-in-Texas/UPI-88011349093527/

Corrosion leader MATCOR Establishes Wholly Owned Subsidiary in Canada to Service Canadian Cathodic Protection Needs

MATCOR
Corrosion leader MATCOR Establishes Wholly Owned Subsidiary in Canada

Doylestown, PA (October 1) – MATCOR, Inc. the trusted full-service provider of proprietary cathodic protection products, systems, and corrosion engineering solutions announced the establishment of its new Canadian subsidiary, MATCOR Canada, Inc., in Calgary, Alberta.

MATCOR’s Senior Director of Business Development Knut Fenner, who leads MATCOR Canada, stated: “The growth of the Canadian oil sands business along with recent issues involving oil spills and the resulting need for corrosion protection, are an opportunity to bring MATCOR’s full suite of superior cathodic protection products and services to the Canadian market. This includes but is not limited to our Linear Anode SPLTM, DurammoTM, our Deep Well Anode Systems, and MitigatorTM, our AC Mitigation products that will help protect the Canadian pipeline infrastructure from corrosion.

Fenner continued “We are the only manufacturer that owns the entire value chain from design, engineering, manufacturing, installation, commissioning, and service – plus, we offer the industry’s only 10-year extended warranty.”

As part of the expansion plan MATCOR has hired Shawn Kunst as its new Business Development Manager.  Shawn’s background includes technical sales to oil and gas producers in addition to well site equipment and service sales, providing equipment such as large storage tanks, heat exchangers and services to the petrochemical, refining, upgrading and transmission markets.

Fenner said, “Shawn’s long background in oil and gas, and well site equipment sales coupled with his proven success in business development, position him extremely well to lead our Canadian operations.”

MATCOR Canada’s new office is located within the Global Business Centre at 120 8thAvenue SE, Calgary, AB T2G 0K6. More information about MATCOR can be found online at www.matcor.com.

About MATCOR

MATCOR, Inc. is a leading cathodic protection and corrosion prevention engineering design firm, providing environmentally beneficial systems and services to global clients for nearly 40 years. An expert in the field of cathodic protection, MATCOR offers proprietary corrosion protection products, installation, cathodic protection testing, maintenance and complete corrosion protection project management. MATCOR specializes in protecting the infrastructure of the oil and gas, electric utility, transportation and other infrastructure industries. 
To learn more about MATCOR, visitmatcor.com or call 800 768 5669.