Plethora of pipeline projects

August 03, 2014

There are a plethora of natural gas pipeline projects ‘north of 56’. Most are in northern BC. All-tolled they represent tens of billions of dollars in capital investment.

• Spectra Energy. Spectra Energy, in an equal interest partnership with BG Group, proposes to build natural gas transportation system originating from northeastern B.C. to serve BG Group’s potential liquefied natural gas (LNG) export facility in Prince Rupert. The proposed 48"pipeline will be approximately 850 km in length. and will be capable of transporting up to 4.2 billion cubic feet per day (Bcf/d) of natural gas. The Westcoast Connector Gas Transmission Project is expected to provide in the range of 4,000 jobs during the peak construction phases, and approximately 50 to 60 permanent jobs for the life of the project. It is supposed to start in 2015 and be completed by 2019.
• TransCanada has been selected by Shell Canada Limited and its joint venture partners in the LNG Canada project to develop an approximately 650-kilometre pipeline to safely deliver natural gas from the Montney gas-producing region, near Dawson Creek, B.C., to LNG Canada’s proposed liquefied natural gas facility near Kitimat, B.C. The $4B project would involve construction with 48-inch-diameter pipe, in addition to the construction and operation of up to three meter stations and one compressor station. The initial capacity would be approximately 1.7 bcf/day. The Coastal GasLink Pipeline Project is estimating 2,000 to 2,500 jobs during construction (approximately 23,000 – 31,000 full-time person years of direct employment). Construction is planned for 2015 with completion by the end of the decade.
• Pacific Northern Gas Ltd. (PNG) is proposing to upgrade its gas transmission capacity by looping (or “twinning”) its existing natural gas transmission pipeline between Summit Lake, B.C. and Kitimat, B.C. The new pipeline will increase the overall pipeline capacity of the PNG Transmission System in order to meet the requirements of its existing customers and new small-scale Liquefied Natural Gas (LNG) Projects proposed for construction in Kitimat. The proposed Project involves the construction of approximately 525 kms of new 24-inch pipe, operating in parallel with the existing pipeline. The Project will generate approximately 1800-2400 direct person years of employment during construction. Subject to receipt of regulatory and Project approvals, construction of the Project could commence as early as the fourth quarter of 2015, with an earliest completion of construction and in-service date occurring in late 2016.
• The Pacific Trail Pipeline is a proposed 487 kilometre natural gas pipeline that will deliver gas from Summit Lake, B.C. to the Kitimat LNG facility site at Bish Cove on the northwest coast of British Columbia.Of the 366,000 construction hours worked to date on Pacific Trail Pipeline, First Nations involvement is approximately 197,000 hours, or 54%. Apache Canada recently announced their intention to withdraw from west coast LNG investments/pipelines, so Chevron Canada is looking for a new partner.
• In Alaska, the proposed Donlin Gold mine will require an average load of 157 megawatts of power for its mining operations. To provide the amount of power required to operate the mine at peak capacity, a 14-inch, 312-mile-long buried pipeline is planned to transport natural gas from the Cook Inlet region to the mine site. The gas line is estimated to cost $1B.
• In Alaska, the North Slope’s major oil producers—BP, ExxonMobil and ConocoPhillips—and pipeline company TransCanada Corp.are planning a project that would cost $45 billion to $65 billion. The project would take gas from the North Slope to Nikiski on the Kenai Peninsula where the gas would be liquified and sent by tanker to Asia. This huge project is about a decade away from construction.

Commentary

North American natural gas is cheap and plentiful. Gas in Asia is about 5 times the price. These attractive economics are driving multinational corporations to contemplate the multi-billion investments required to move the gas to markets. These massive investments could create thousands of construction jobs in the next few years.

The Supreme Court of Canada recently found that British Columbia breached its duty to consult when it made land use planning decisions and issued forestry licences over the lands where title was claimed by the Tsilhqot’in First Nation. This decision provides both a road map for Aboriginal title claims and key signposts for other cases respecting treaties and land claims. It also sends a clear signal that government cannot ignore questions about Aboriginal title when taking actions such as issuing permits.

Sources

• a)http://investnorthwestbc.ca/major-projects-and-investment-opportunities/map-view/spectra-natural-gas-pipeline/spectra-pipeline



• b)http://www.coastalgaslink.com/category/the-benefits/project-benefits/



• c)http://www.png.ca/png-looping-project/



• d)http://commonsensecanadian.ca/map-shows-multiple-proposed-oil-gas-pipelines-bcs-carbon-corridor/



• e)http://www.chevron.ca/operations/kitimat/pacific-trail-pipeline.asp



• f)http://www.mondaq.com/canada/x/326296/indigenous+peoples/Supreme+Court+Of+Canada+Grants+Tsilhqotin+Aboriginal+Title+In+William+Implications+For+Resource+Development+In+Canada