June 2008 IssuE
Doing Business
Panel Created to Report on Nuclear Power
BY NORDAHL FLAKSTAD
Freelance Writer
The Government of Alberta has appointed an expert panel to prepare a comprehensive and objective report on nuclear energy. The report will provide the basis for future public discussions.
The panel will be chaired by former federal cabinet minister Harvie Andre, the president and CEO of Wenzel Downhole Tools Ltd. Also on the board are
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Dr. Joseph Doucet, Enbridge Professor of Energy Policy, University of Alberta School of Business
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Dr. Harrie Vredenburg, Suncor Energy Chair in Competitive Strategy and Sustainable Development, University of Calgary Haskayne School of Business
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Dr. John Luxat, a professor in nuclear safety analysis at McMaster University’s Department of Engineering Physics.
The panel will be asked to provide a comprehensive examination of
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environmental, health and safety issues
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waste management
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comparisons of nuclear energy with other electricity generation technologies
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current and future nuclear power generation in Canada and around the world
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Alberta’s future electricity needs
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social issues and concerns related to nuclear energy.
EnCana to Split Into
Oil and Gas Companies
EnCana Corp. will split into a natural gas company and a fully integrated oil company with oilsands properties, refineries, and oil and gas resource plays. The move will create a publicly traded, integrated oil company under the working name of IntegratedOilCo.
EnCana’s other major operating divisions, Canadian Foothills and USA, will form a pure-play natural gas company, aimed at growing existing high-potential resource plays in Canada and the United States. For now called GasCo, it will represent about two-thirds of EnCana’s current production and proved reserves.
It’s expected that GasCo will retain the name EnCana Corp. The permanent name of IOCo will be determined before the transaction closes.
Both companies would be among Canada’s 20 largest corporations and among the top six energy companies in Canada. For each share held, EnCana shareholders will receive one share in each of the two companies.
David O’Brien, chairman of EnCana, is designated president and chief executive officer of IOCo. Randy Eresman, P.Eng., EnCana’s president and CEO, is designated president and CEO of GasCo.
Suncor to Pay
For New Interchange
Suncor Energy Inc. is helping the province make Highway 63 safer. It has signed an agreement with the Province of Alberta for the construction and maintenance of an interchange designed to improve traffic flow.
Under the agreement, Suncor will pay for and construct a $55-million interchange, 25 km north of Fort McMurray. Once the job is complete, ownership transfers to the province.
Suncor initiated plans for the interchange so it could improve highway safety during the construction and operation of the company’s new upgrader — part of a planned $20.6 billion worth of oilsands expansion. The interchange will also link Suncor’s base plant east of Highway 63 to the new upgrader, as well as to other developments on the west side that may occur in the future.
The freeway-style interchange will replace a ground-level intersection and accommodate future widening of Highway 63.
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OILSANDS ENTERPRISE |
Project to Focus on
Potential Carbon Capture
Alberta Research Council Inc. and ARC Energy Trust of Calgary, one of Canada’s largest conventional oil and gas royalty trusts, have created the Heartland Area Redwater Project, an advanced initiative aimed at capturing and storing greenhouse gas emissions.
HARP will evaluate the potential for the Redwater Leduc Reef to store as much as 1,000 Mt of carbon dioxide. This could accommodate more than 20 years of CO2 emissions from the large emitters either existing or planned for the Industrial Heartland, near Fort Saskatchewan.
The $1.8-million first phase is being funded by ARC Energy Trust, the Alberta Energy Research Institute and Natural Resources Canada. Phase 1 is scheduled to be completed in spring 2009.
Meanwhile, the Alberta Government has named former Syncrude President Jim Carter, P.Eng., to head the Alberta Carbon Capture and Storage Development Council. To report in the fall, the council is made up of representatives of industry, the federal and provincial governments, academia and industry.
It will develop a plan for implementing carbon capture and storage in Alberta, complete with timing and expectations. The new council has also been asked to respond to recommendations made in January by a federal-provincial task force on carbon capture and storage.
In addition to Mr. Carter, a number of other APEGGA members are on the council — Bill Andrew, P.Eng., Penn West Energy Trust; Dave Collyer, P.Eng., Shell Canada; Kathy Sendall, P.Eng., Petro-Canada; Art Meyer, P.Eng., Enbridge; Randy Eresman, P.Eng., EnCana, and Honorary Member Roger Thomas, Nexen Inc.
Calgary Development
Biggest of its Kind
In Western Canada
WAM Development Group and AIMCo have announced plans for the largest single development in Western Canada of retail, office, industrial and hotel space. The $3-billion, mixed-use commercial development in Calgary involves 10 million sq. ft. of industrial space, 2 million sq. ft. of offices and about 1.5 million sq. ft of retail space.
Initial occupancy is expected in the spring of 2009 for the project, which will be built on 1,100 acres of land bounded by the Deerfoot, Métis and Stoney trails, and Country Hills Boulevard.
Alberta Increases
Capital Spending Plans
Alberta’s 2008-11 Capital Plan, tied to the April 22 provincial budget, projects spending $22.2 billion over the next three years for municipalities, housing, hospitals, schools and roads.
Highlights for 2008-11 are
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an overall increase of $3.9 billion or 21 per cent from the 2007 budget
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$3.3 billion for health facilities and equipment
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$1.7 billion for schools
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$1.5 billion for post-secondary facilities
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$5.2 billion for provincial highways
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$5 billion for municipalities
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$1.1 billion for housing.
Road Spending in 2008
Rolls Toward Record
The Province of Alberta will invest a record $1.9 billion in 2008 on road, highway and bridge construction, and on repaving and widening work across the province.
The province will repave 1,240 km of highway, including 82 km of widening. Also included in the spending is new highway paving of another 50 km.
Highlights of provincial highway construction work in Calgary and area are
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continued construction on Stoney Trail N.E. and N.W.
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Deerfoot Trail improvements
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construction of a new interchange near Chestermere at Highways 1, 9 and 797.
Highlights of provincial highway construction work in Edmonton and area are
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start of construction on Anthony Henday Drive N.W. (project being tendered)
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continuation of work on twinning of Highway 21
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reconstruction of Highway 625 near Nisku
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repaving QEII between Ellerslie Road and Highway 39, and illumination from Ellerslie Road to Airport Road — total cost, $24 million.
Total’s Synenco Acquisition
Builds Oilsands Portfolio
French multinational Total is increasing its presence in the Athabasca oilsands by acquiring Synenco Energy Inc. for $480 million in a friendly takeover.
Synenco’s main asset is 60 per cent of the Northern Lights Project, 100 km northeast of Fort McMurray, which it operates. Chinese-based Sinopec holds the remaining 40 per cent of the project through its subsidiary SinoCanada Petroleum Corp.
The acquisition, Total says, will strengthen its Athabasca portfolio, which already includes the Joslyn project, 50 km away.
Total also holds a 50 per cent interest in the Surmont lease, southeast of Fort McMurray. Phase 1 of the lease. which is already producing, has a capacity of 25,000 bbl/d and is expected to reach plateau production by 2012. Phase 2 is slated for commercial start-up before the middle of the next decade.
In addition, Total has initiated the process to build an upgrader near Edmonton.
NEB Approves Enbridge Request For Pipeline Extension
The National Energy Board has approved an application by Enbridge Inc. to extend the Line 4 crude oil pipeline from Hardisty to Edmonton. The extension’s capacity will match the planned 880,000 bbl/d of the existing Line 4, downstream of Hardisty.
The project entails about 138 km of newly constructed, 36-inch pipeline installed to connect three existing, inactive segments of 48-inch pipeline, totalling 40 km. The Line 4 Extension is expected to be in service in 2009.
This NEB approval follows its acceptance of Enbridge’s Alberta Clipper expansion and Southern Lights projects. With 1,607 km of new pipeline construction, Alberta Clipper is the largest expansion in Enbridge’s history and is designed to move crude oil to U.S. Midwest markets.
AMEC Buys Calgary Company
International engineering and project management giant AMEC has acquired Calgary-based Bower Damberger Rolseth Engineering Ltd., a specialist in the in situ oilsands business, for $45 million.
BDR provides specialist technical engineering services to the in-situ heavy oil, gas and oil production industries. With 85 employees, it has a particular expertise in thermal recovery of in situ oil through steam-assisted gravity drainage.
ATCO Frontec
Works With First Nation
On Suncor Accommodation
Suncor Energy Inc. has again selected ATCO Frontec and the Fort McKay First Nation to create and operate a housing complex. The 1,148-room complex will support oilsands development 65 km north of Fort McMurray.
Besides rooms supplied by ATCO Structures, the complex includes a dining room, a games room, a fitness centre, meeting rooms, television rooms, laundry facilities and on-site parking.
ATCO Frontec will manage construction and the Fort McKay Group of Companies will manage day-to-day operations. The additional Suncor complex is located on Fort McKay land across from Creeburn Lake Lodge, which opened in April and is the first joint venture between Fort McKay and ATCO Frontec.
Stantec Adds Firm
With Mining Focus
Stantec is acquiring a company known for serving many of the largest, deepest and most technically challenging mines in the world. McIntosh Engineering has more than 200 employees, located mainly in Tempe, Ariz., and Sudbury and North Bay, Ont.
In 2007 McIntosh gross revenues were about $32 million. Its underground mining services range from mine conceptualization through to full mine feasibility, detail engineering and design for construction, and procurement and construction management. The firm’s specialties include underground mining methods, mine development, deep shafts, materials handling systems, and complete infrastructure to support underground operations.
TransGlobe Energy
Sells Canadian Assets
TransGlobe Energy Corp. has sold its Canadian oil and gas assets to Direct Energy Marketing Ltd. for $56.7 million.
Calgary-based TransGlobe is an oil and gas exploration and development company focused on the Middle East and North Africa, with production operations in Egypt and Yemen. Direct Energy is one of North America’s largest energy and energy-related services providers.
Major Power Lines
No Longer Require
Environmental Assessment
Alberta Environment will no longer require automatic environmental impact reviews prior to construction of major power projects.
Until the recent announcement, projects involving transmission lines of less than 130 kilovolts were exempt from reviews. Reviews were discretionary for those of up to 500 kV but mandatory for those of more than 500 kV.
Now, the need for assessment will be in the hands of the Alberta Minister of Environment.
BHP Billiton Buys
Outstanding Shares
Of Anglo Potash
Australian mining giant BHP Billiton is seeking complete control of the Canadian Potash Joint Venture development. It has acquired all outstanding common shares of Calgary-based Anglo Potash Ltd. for $284 million.
Anglo Potash’s only asset is its 25 per cent interest in the project. BHP Billiton already has a 75 per cent interest, so approval will give it 100 per cent control.
BHP Billiton’s Canadian potash position comprises prospective exploration permits on 7,338 square km of land in the immediate vicinity of existing major Saskatchewan potash mines.