Canada: Oh Canada - Significant Developments In Canadian Energy, December 2012

Oil Sands News

1. Encana Corporation and Phoenix Duvernay Gas, a wholly owned subsidiary of PetroChina, have entered into a joint venture arrangement to explore and develop Encana's undeveloped Duvernay land holdings in west-central Alberta. Under the terms of the agreement, PetroChina will gain a non-controlling 49.9% interest in Encana's approximately 445,000-acre Duvernay play, estimated to contain approximately nine bbbl of oil, in exchange for $2.18 billion. Encana will remain operator and retain a 50.1% controlling interest in the partnership. The partners anticipate a total combined investment of $4 billion in new drilling, completion and processing facilities.

1. Spectra Energy has announced that it will spend $1.49 billion ($1.25 billion in cash and $240 million in debt) to buy the Express-Platte Pipeline System, formerly owned collectively by the Ontario Teachers' Pension Plan, Borealis Infrastructure, and pipeline operator Kinder Morgan Energy Partners, which moves crude oil from Western Canada to refineries in the Rocky Mountain and Midwest regions of the United States. The Express pipeline transports up to 280,000 bpd of crude oil from Hardisty, Alberta to U.S. refining markets in Montana and Wyoming, with the smaller Platte system carrying 164,000 bpd from Guernsey, Wyoming to Wood River, Illinois.

East Coast News

2. Emera, the primary provider of power in Nova Scotia, has announced an agreement to acquire government owned Brooklyn Energy, a biomass electrical co-generation facility located in Brooklyn, Nova Scotia. Brooklyn Energy is a 30 MW facility that produces 173,000 MW hours per year. As part of the $25-million transaction, the current employees will continue to operate the facility. Local suppliers will continue to provide the fuel for the plant, namely wood waste residue and wood. Brooklyn Energy has a long term power purchase agreement with Nova Scotia Power.

3. The Newfoundland and Labrador House of Assembly passed a motion that the Government of Newfoundland support the Muskrat Falls Hydro Project development. The project is estimated to cost between $7.5 and $7.7 billion. The project has been endorsed by Global Energy Consultants and the belief is that it is the most cost effective option for providing power in the region.

West Coast News

4. British Columbia Premier Christy Clark has announced the B.C. government's plan to export liquefied natural gas to Asian markets, indicating a prediction that it will have an economic impact on scale with that of the Alberta oil sands. Premier Clark has indicated that her government is committed to working with the gas industry to build a pipeline from the natural gas fields in the northeastern part of the province to a planned LNG terminal in northwest B.C., near Kitimat, where product will be loaded onto tankers and shipped to markets in Asia. The B.C. government anticipates the opening of three LNG operations in the province by 2020, with the first project up and running by 2015. A 20-year export license was granted by the National Energy Board in October, 2011, to Kitimat LNG, comprised of Apache, EOG Resources and Encana. It is expected that the completed LNG terminals will create up to 1,000 direct (9,000 total) jobs during the eight-year construction phase, with $20 billion in direct investment and annual LNG revenues to the province of up to $2 billion.

Canadian Arctic News

5. Qulliq Energy is beginning a feasibility study and environmental review on two multimillion dollar hydro-electric dams near Iqaluit. It is anticipated that a more accurate estimated cost for the project will emerge after a geotechnical study by the consulting firm Knight-Piesold and that funding may be secured for the projects. If the two hydro-dams were built, the first at Jayne's Inlet will generate 10 MW of power, while the second at Armshow South would generate six MW of power. It is expected that a project description will be submitted to the Nunavut Impact Review Board and other agencies by February 2013.

6. Kivalliq Energy has announced that five diamond drill holes at the Nine Iron Trend have led to a uranium discovery in Nunavut. Due to its radioactivity, uranium is useful as fuel for nuclear power plants. Kivalliq Energy is a Vancouver-based uranium exploration company. The Nine Iron in Nunavut is one of the six mineralized zones discovered in the 340,268 acre property in Angilak, Nunavut. The uranium mineralization was intersected in all five holes at vertical depths between 17 and 154 metres.

7. The Northwest Territories has a potentially large shale oilfield in the MacKenzie Valley, and Arctic offshore Northwest Territories government officials met with interested firms in Houston, Texas to discuss possible development. It is believed that the potential discoveries of oil and gas in the water off the coast of the Northwest Territories may rival those in the Gulf of Mexico. It is expected that the MacKenzie Valley, not the arctic coast, may be the first to see commercial development as Husky Energy, MGM Energy, Conoco Phillips, Imperial, and Shell are all active in the MacKenzie Valley area.

Alternative Energy

8. Ontario's Environment Review Tribunal has upheld the approval of a wind project in South Kent, Ontario, following a challenge by Chatham-Kent Wind. The South Kent wind farm is now expected to be operating by the end of 2013. It is the first of a planned two GW of wind power that Samsung and Pattern are developing in Ontario under an agreement with the provincial government. Samsung and Pattern have concluded power purchase contracts for four projects totaling 870 MW with more projected in 2013.

9. Cartier Wind has announced the operation of its Gros-Morne Phase II powered by wind turbines and located in the Gaspésie region of Quebec. With a total output of 211.5 MW, Gros-Morne Phase I and II combined now constitute the largest wind farm in Canada. Cartier Wind is a joint venture created by TransCanada and Innergex which began its first projects in 2004. A four year GE Operations and Maintenance service contract has also been signed in connection with the project. GE has more than 50 wind technicians and engineers in Canada providing expertise in parts, maintenance, upgrades, and long term service contracts.

10. Sea Breeze Power, a British Columbian energy power with a focus on "green power" is pursuing a possible wind farm development in the Prince Rupert region in British Columbia. The company is installing a total of five meteorological towers to gather information over the course of the year to determine the potential wind resources in the Tuck Inlet. If the data gathered indicates encouraging results, Sea Breeze Power will install additional towers to model wind speeds across the site. If the project is viable and built, the energy produced would be sold to the B.C. hydro-grid.

8. REpower has signed a deal to supply 51 turbines to six wind farms currently being built in Canada. REpower will be opening a rotor blade factory in southern Ontario to service these new wind projects.

The wind turbines will be installed at various projects in Ontario, which will be built and commissioned in 2014. REpower has been operating in Canada since 2007, and is currently supplying 84 MW of grid-connected projects and is installing a further 350 MW in the foreseeable future.

On the Horizon

Cenovus Energy and SaskPower have signed a 10-year agreement for the purchase of the full volume of CO2, approximately one million tonnes per year, captured from SaskPower's facility at Boundary Dam Power Station, near Estevan, Saskatchewan. The CO2 captured at the Estevan facility, the world's first and largest coal-fired integration carbon capture and storage project, will be used by Cenovus to stimulate production at its enhanced oil recovery project at Weyburn Saskatchewan. The Weyburn facility produces approximately 27,000 bpd, with an estimated 19,000 bpd from EOR techniques.

Exxon Mobil is moving forward with the $14 billion offshore Hebron oil field off the coast Newfoundland. Exxon anticipates 150,000 bbls of oil per day at Hebron, utilizing a massive concrete gravity-base structure similar to the one at the nearby Hibernia project, which has been operating since the late 1990s. First production at Hebron is scheduled for 2017.


In this newsletter, all dollar amounts are Canadian dollars unless otherwise stated. We have also used the following abbreviations: bpd - barrels per day; boepd - barrels of oil equivalent per day; mmcfpd - million cubic feet per day; bcfpd - billion cubic feet per day; tcf - trillion cubic feet; bbl - barrel; mbbl - thousand barrels; mmbbl - million barrels; bbbl - billion barrels; boe - barrels of oil equivalent; MW - megawatts; kV - kilovolt; km - kilometer; KW - kilowatts; KWh - kilowatt hours; cmpd - cubic meters per day; GJ - gigajoule.

About Fraser Milner Casgrain LLP (FMC)

FMC is one of Canada's leading business and litigation law firms with more than 500 lawyers in six full-service offices located in the country's key business centres. We focus on providing outstanding service and value to our clients, and we strive to excel as a workplace of choice for our people. Regardless of where you choose to do business in Canada, our strong team of professionals possess knowledge and expertise on regional, national and cross-border matters. FMC's well-earned reputation for consistently delivering the highest quality legal services and counsel to our clients is complemented by an ongoing commitment to diversity and inclusion to broaden our insight and perspective on our clients' needs. Visit:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions