Alberta Oilsands News
Suncor announced that its $3.6 billion Millennium coker project is moving forward as scheduled, with the project expected to come onstream by late next year. Suncor is also optimistic that the company's Project Voyageur will get regulatory approval "on a timely basis". Project Voyageur is a multi-phased project designed to increase the company's oil sands production capacity to 500,000 to 550,000 bpd of synthetic crude oil and bitumen from 2010 to 2012. For 2006, Suncor's oilsands production is averaging 262,000 bpd of synthetic crude oil and bitumen. (See number 1 on map)Husky Energy has completed construction of its Tucker in situ oilsands project. The Tucker project has begun steam injection into the reservoir with first oil being anticipated as early as this November. The project is expected to achieve a peak production of 30,000 bpd of bitumen within two years, with a total of 350 mbbls of bitumen being produced over the 35-year life of the project. In order to accommodate production from the Tucker Project, Husky also announced a $100 million expansion of its mainline crude oil pipeline between Lloydminster, Alberta and its terminal at Hardisty, Alberta. (See number 1 on map)
Energy Alberta Corp. announced a two-year exclusive deal with Atomic Energy of Canada to market and sell Candu nuclear reactors to firms looking to operate oil sands projects. Energy Alberta is specifically targeting developers that use steam injection to recover bitumen from the oilsands and is optimistic that a $3 billion reactor will be built by 2014 to support those projects. (See number 1 on map)
West Coast News
Kitimat LNG has received federal environmental assessment approval for its proposed $500 million, one bcfpd LNG import, regasification and send-out terminal near Kitimat, B.C. This approval, the final regulatory hurdle for the project, comes just a month after the project received approval from the province. Site preparation for the terminal and regasification facility is slated to begin in late fall of 2006, with operations scheduled to commence in 2009. (See number 2 on map)
The Canadian federal government has renewed its commitment to defending Canada's sovereignty over the Arctic region, noting that the economics and strategic value of resource development are growing more attractive and critical to Canada. (See number 8 on map)
East Coast News
Harvest Energy Trust has agreed to buy North Atlantic Refining Limited, owner of the 115,000 bpd of oil refinery at Come By Chance, Newfoundland from Vitol Refining Group B.V. for approximately $1.6 billion. Also included are a marketing division in Newfoundland with 69 gasoline stations and a home heating business servicing 20,000 residential and commercial customers, the supply of refined products to commercial and wholesale customers, and the bunkering of refined petroleum products. (See number 3 on map)
EnCana has filed a revised project description for its proposed Deep Panuke offshore project with the Canada Nova Scotia Offshore Petroleum Board. The revised description forecasts production of about 300 mmcfpd of natural gas for about 11.5 years. EnCana plans on filing a development application later this year, and hopes to put an approved project before its own board of directors by the end of next year. (See number 4 on map)
Alternative Energy News
Air Products Canada announced its new natural gas based steam methane reformer in Sarnia, Ontario is on-stream and supplying 80 million standard cubic feet per day (mmscfd) of hydrogen to two nearby refineries. The facility is the largest plant outsourcing hydrogen in Canada and the second new Air Products Canada facility to supply hydrogen to Canadian refineries. The facility will help refineries operated by Suncor and Shell produce ultra low sulphur diesel and other petroleum products. (See number 5 on map)
Ontario Power Generation has selected Strabag AG to build the $600 million hydro tunnel running under the city of Niagara Falls from the upper Niagara River to the Sir Adam Beck Power Stations in Queenston, Ontario. The total cost of the 10.4 kilometre tunnel, associated facilities and remedial work on existing infrastructure is expected to be about $985 million. Project completion is expected by late 2009, with the end capacity of 1.6 billion kilowatt hours expected to provide enough power for 160,000 homes. (See number 6 on map)
Northern Ethanol has executed an exclusive agreement to work on developing a 378 million litre per year ethanol plant in Ontario, which is expected to begin producing by mid-2008. Northern Ethanol is planning to construct three facilities in Ontario and New York to produce ethanol and its co-products, specifically distillers dried grains with solubles and carbon dioxide. (See number 5 on map)
Babcock & Wilcox Canada and SaskPower have entered into an agreement that could lead to SaskPower building a $1.5 billion low emission coal-fired power plant. Babcock & Wilcox Canada will provide the design and engineering required to develop a supercritical pressure pulverized coal-fired boiler, which will help SaskPower assess whether to proceed with construction. The proposed plant would reduce greenhouse gas emissions by capturing at least 90% of carbon dioxide, which might be recovered for sale for enhanced oil recovery operations and sequestrated underground. SaskPower also announced an agreement with Marubeni Canada and Hitachi Canada for design collaboration on other aspects of this project. (See number 7 on map)
Bruce Power LP has filed an application with the Canadian Nuclear Safety Commission to prepare a site for potential construction of new reactors at its Ontario facility. The filing represents the next phase in its study, started in January 2004, on the feasibility of restarting two units, refurbishing four other reactors and potentially building Canada's first new reactors in a generation. Bruce Power is currently the source of more than 20% of electricity in Ontario. (See number 5 on map)
Sustainable Development Technology Canada (SDTC) has initiated another call for proposals for technology solutions designed to improve sustainability for all Canadian economic sectors, with the focus on applications for technologies providing clean water and soil solutions as well as those related to cleaner air and climate change. In preceding calls for proposals since April 2002, SDTC has received 1,170 submissions from more than 2,900 companies and organizations representing $9.7 billion in clean technology project potential.
On the Horizon
Talisman Oil Sands Sale
Talisman Energy has announced its intention to initiate a competitive auction process to seek proposals for the sale of certain oil sands interests in Athabasca, Alberta.
In this newsletter, all dollar amounts are Canadian dollars. We have also used the following abbreviations: bpd - barrels per day; mmcfpd - million cubic feet per day; bcfpd - billion cubic feet per day; tcf - trillion cubic feet; bbl - barrel; mbbl - million barrels; bbbl - billion barrels; boe - barrels of oil equivalent.
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