Kitimat LNG progressing–or is it?

At the District of Kitimat Council meeting on Monday, October 1, as part of Mayor Joanne Monaghan’s regular “good news” briefing, she told council that the Kitimat LNG  project continues to “progress positively.”  The news from Calgary on Tuesday, however, was not as promising.

Both Bloomberg News and the Calgary Herald reported that  Apache, which owns 40 per cent of the KM LNG partnership is worried about a recent decision by a rival gas company to sell natural gas to world markets at low North American prices rather than, as been customary up until now, as percentage of the world oil price. That differential gives the North American gas companies a profit in Asia and it is that profit difference that makes Kitimat attractive for LNG projects.

At the council meeting, Monaghan reported, quoting Apache’s  Apache’s Manager of Public and Government Affairs Natalie Poole-Moffatt, as saying that  Kitimat LNG will be opening a full time community office in downtown Kitimat near the City Centre mall in the near future.  Apache says renovations are nearly complete and they will be holding an open house in the near future.

Monaghan said that work on the Kitimat LNG site at Bish Cove continues with blasting to create proper elevation, crushing and sorting of rock and constructing an access route to the forest service road. This summer work began on the two year $25 million upgrades to the old forest service road “which will improve conditions on the road.”

However, in Calgary, the Herald quoted KM LNG vice-president David Calvert as saying “things are going so well that it has been decided to risk spending on clearing ground before completion of the front end engineering and development study and final investment decision.”

But according to several media reports,  Calvert told an Energy Roundtable in Calgary on Tuesday that a final go-ahead for Kitimat LNG is not a done deal. the Herald quoted Calvert as saying: “We remain convinced that oil-linked pricing is critical to the viability of our Canadian LNG industry.”

Bloomberg reported that a recent deal by Cheniere Energy Inc. to sell liquefied natural gas based on North American pricing (also known as Henry Hub pricing) means that it is difficult for Apache to find Asian customers to sign the long term LNG contracts needed to make the Kitimat project viable. (Asian LNG prices are based on the “Japan Customs Cleared Price” set by the Japanese government as a percentage of the price of crude oil).

Bloomberg quoted Calvert as saying: “It created quite a ripple through the marketplace,” and Bloomberg said, the Cheniere deal has created “unrealistic expectations.”

Related

Globe and Mail

Canadian gas producers dreaming big – again 

Canada losing the race to sell LNG

Updated

The Haynesville Shale

Cheniere Deal Hurts Canadian LNG Project

Cheniere is less sensitive to prices given its role as a middleman, while Apache, Encana and EOG are producers, for whom the price is very important.  One advantage of Kitimat is its west coast location, but that is only a minor cost advantage over Gulf Coast facilities.

The clock is ticking on Kitimat.  It sounds like Asian buyers are sitting on the sidelines waiting for lower prices.  Right now the U.S. government is sitting on future LNG approvals pending the release of a study around year-end.  If the U.S. approves the pending applications, a proverbial flood of LNG will come to market with Henry Hub-based pricing.  At that point Kitimat’s owners will be in a tough spot.  Kitimat is vital to B.C., but the economics might not work.

Wall Street Journal

Cheniere Lights a Match in the Gas Market

 

Minor oil leak at Bish Cove

In a report to District of Kitimat Council, Apache’s Manager of Public and Government Affairs,  Natalie Poole-Moffatt,  also reported that on September 19, an oil leak was spotted on a piece of heavy equipment at Bish Cove.  The report says;

WestCoast Marine was notified and booms were deployed as a preemptive measure in Bish Cove, no machine oil has migrated to Bish Cove. Environmental crews are on site executing a remediation plan.  Both the [BC] Provincial Emergency PLan (PEP) and Aboriginal and Northern Affairs Canada  were notified of the incident.

The piece of equipment  is currently being repaired and will undergo operational tests to ensure  the equipment can function without further concern.  Environmental staff will remain on the site 24/7 until remediation is complete.

Spectra Energy, BG Group propose natural gas pipeline to Prince Rupert, creating fourth NW BC LNG project

Spectra Energy Corp of Houston, Texas, today announced that the company has signed a Project Development Agreement with BG Group PLC, based in the United Kingdom, to jointly develop plans for a natural gas transportation system from northeast B.C. to serve BG Group’s potential liquefied natural gas (LNG) export facility in Prince Rupert.

The BG group signed an agreement last February with the Prince Rupert Port Authority  for a feasibility study to develop an LNG terminal at the port.

Spectra Energy BC project map
A map released by Spectra Energy shows the proposed pipeline project from the shale gas fields of northeastern BC to Prince Rupert (Spectra Energy)

 

 

A release from Spectra Energy and BG Groupsays each company will initially own a 50 per cent interest in the proposed transportation project. Spectra Energy will be responsible for construction and operation and BG Group has agreed to contract for all of the proposed capacity.

The approximately 850-kilometre, large diameter natural gas transportation system will begin in northeast B.C. and end at BG Group’s potential LNG export facility in Prince Rupert.

A fact sheet released by Spectra says the project would provide 50 to 60 permanent jobs on completion and about 4,000 jobs during construction.

BC Group logoThe Spectra BG project will be the fourth using BC’s strategic position on the Great Circle Route to Asia to export liquified natural gas. TransCanada has signed a deal with Shell for a pipeline, Coastal GasLink, that would initially carry up to 1.7-billion cubic feet a day of gas to the Shell Canada project at Kitimat The Pacific Trails pipeline, could carry more than 1-billion cubic feet a day to the KM LNG partners ship where Apache, EOG and Encana are building a terminal at Bish Cove, south of Kitimat. The fourth project, BC LNG, would use either existing pipelines or share one of the proposed Kitimat pipelines to produce LNG for customers at a barge-based floating terminal at what is sometimes called North Cove, between the KM LNG project at Bish Cove and the proposed Enbridge Northern Gateway project which would be close to the Rio Tinto Alcan smelter.

Spectra Energy LogoThe Spectra release says the new transportation system will be capable of transporting up to 4.2 billion cubic feet per day of natural gas. The project will connect with the Spectra Energy facility at Fort St. John, the centre of the still growing shale gas production and exploration in the northeastern BC.

Greg Ebel, president and chief executive officer, Spectra Energy says in the release:

We are excited to be partnering with BG Group, a recognized world leader in natural gas and more specifically, LNG. This project offers B.C. a unique opportunity to access new markets, strengthen its energy infrastructure, engage stakeholders in economic growth and job creation, and ultimately secure the province’s position as a competitive energy leader.

Furthermore, today’s announcement initiates our next wave of investment opportunity in B.C.  We are ideally positioned to create further value for our investors by leveraging surplus B.C. natural gas supplies and facilitating its export to high-demand markets in Asia. This, in turn, will provide multiple opportunities for further investment in our gathering and processing facilities in the province.

Doug Bloom president of Spectra Energy Transmission West adds in the release:

For more than half a century, Spectra Energy has been a part of communities in B.C. This project will build on our expertise and track record of delivering natural gas responsibly, listening to the needs of Aboriginal and local communities, and protecting the environment, as we help deliver on B.C.’s energy potential.
Working together with affected stakeholders and based on preliminary assessments of environmental, historical, cultural and constructability factors, early conceptual routes have been developed. Spectra Energy and BG Group will continue engaging with interested and affected stakeholders, including Aboriginal and local communities, environmental organizations and regulatory agencies, to further refine the project route.

Spectra Energy Fact Box
Fact box from Spectra Energy on the proposed pipeline to Prince Rupert (Spectra)

As is now common with proposed energy projects for northwestern British Colulmbia, Spectra  has set up a website for consultations Energy for BC.

Spectra says: “The new outreach initiative is designed to engage with stakeholders on the jobs, revenues and environmental benefits that natural gas can create in British Columbia.”
Spectra also makes the usual commitment to “spend the next several years closely conferring with stakeholders and working through the permitting process for the proposed transportation system.”

Spectra Energy Project Fact Sheet
  PDF

The Empire Strikes Back I: Enbridge takes on First Nations, small intervenors

Douglas Channel
Douglas Channel at the site of the proposed Enbridge marine terminal, June 27, 2012. (Robin Rowland/Northwest Coast Energy News)

Enbridge is striking back against the First Nations and intervenors who oppose the Northern Gateway pipeline and marine terminal projects by filing questions that those groups must answer as part of the Joint Review Process.

On May 11, 2012, Enbridge filed questions with 24 organizations,  and from the questions, it appears that Enbridge isn’t  just building a strictly legal case in their favour but are preparing to try and discredit opponents.

Enbridge’s questions are part of the legal process. For months, First Nations and intervenors have been filing a whole series of questions asking for clarification of items in the Enbridge’s filings on the project with Joint Review Process and Enbridge has the legal right to ask the First Nations and intervenors to clarify their positions.

However, the difference is that Enbridge is a giant corporation which can afford to spend millions of dollars on both the approval process as well as the current nationwide advertising process, while some of the intervenors are made up of volunteers or retirees working on their own time. Sources among the intervenors have been saying for months that they believe that Enbridge is following a perceived policy of working to wear down the opponents so much they burn out and drop out of the process.

A large proportion of the questions Enbridge is demanding that First Nations and intervenors answer are overtly political, rather than technical responses to their filings.

In an apparent escalation of its campaign against its opponents, Enbridge is using the Joint Review process to ask intervenors about funding, naming such hot button organizations such as Tides Canada, which is under attack by the Harper government.  Enbridge is also  questioning  the “academic credentials” of numerous intervenors and commenters, even though the Joint Review Panel has spent most of the past seven months asking people to comment based on “local knowledge,” leaving the technical questions to the documents filed with the JRP

Some key questions directed at both the Haisla and Wet’suwet’en First Nations seem to indicate that Enbridge is preparing to build both a legal and probably a public relations case questioning the general, but not unanimous support for liquified natural gas projects in northwestern BC, by saying “Why not Northern Gateway,” as seen in this question to the Haisla Nation.

Please advise as to whether similar measures would be requested by the Haisla First Nation to deal with construction-related impacts of the Northern Gateway Project.

Black Swan

A series of questions to the coalition known as the Coastal First Nations questions the often heard assertion that an oil spill on the BC coast is “inevitable,” and Enbridge appears to be prepared to argue that spills are not inevitable. Enbridge asks Coastal First Nations about a study that compared the bitumen that could be shipped along the coast with the proposed LNG projects.

Please provide all environmental and risk assessment studies, including studies of “Black Swan” events, conducted by the Coastal First Nations or any of its members in respect of the LNG projects referred to.

Enbridge is referring to Nassim Nicholas Taleb’s now widely known “theory of high-impact, hard-to-predict, and rare events that are beyond the realm of normal expectations in history, science, finance and technology.”

It is Black Swan events that most of the people of the northwest coast fear when it comes to all the major energy projects, but if as Taleb says they are hard-to-predict and rare, how can the studies Enbridge is requesting actually predict those disasters?

Enbridge’s questions to the Haisla Nation runs for 28 pages and many of those questions are political, not technical, including asking for details of the Haisla support for the various Kitimat liquified natural gas projects and who may be funding the Haisla participation in the Joint Review Process. Many technical questions around the questions of “acceptable risk” and it appears, despite the fact Enbridge officials have listened to the Haisla official presentation at Kitamaat Village last January and the speeches of Haisla members this week at the pubic comment hearings, that Enbridge is preparing to use a paper-based or Alberta-based concept of acceptable risk as opposed to listening to the First Nation that will be most directly affected by any disaster in the Kitimat harbour or estuary.

(See The Enbridge Empire Strikes Back II The Haisla “fishing expedition”)

A series of questions seems to negate Enbridge’s claim that it has the support of many First Nations along the pipeline route because Enbridge is asking for details of agreements that First Nations have reached with the Pacific Trails Pipeline. Enbridge has consistently refused to release a list of the First Nations it claims has agreements with the company, but in the questions filed with the JRP, Enbridge is asking for details of agreements First Nations in northern BC have reached with the Pacific Trails Pipeline.

Funding demands

For example, while Enbridge is refusing to name all the backers of the pipeline for reasons of corporate confidentiality, the company is asking who may be funding the Wet’suwet’en First Nation in its appearances before the Joint Review Panel, including the US-based foundations named by right-wing blogger Vivian Krause,  (note Krause recently declared victory and suspended her blog) right-wing columnists and the Harper cabinet:

Please confirm that the Office of the Wet’suwet’en has received participant funding from the Canadian Environmental Assessment Agency to participate in the Joint Review Panel (“JRP”) proceeding.

Please advise as to the amount of participant funding received to date from the Canadian Environmental Assessment Agency.

Please advise whether or not the Office of the Wet’suwet’en has received funding within the
last 5 years from Tides Canada, the Gordon and Betty Moore Foundation, the William and Flora Hewlett Foundation, or any other similar foundations, to oppose the Northern Gateway Project or to oppose oil sands projects in general.

If so, please provide the amount of funding received from each foundation.

In the case of the Raincoast Conservation Foundation, Enbridge is asking for details, including a membership list.

Please provide a description of the Raincoast Conservation Foundation.

Does the Raincoast Conservation Foundation prepare Annual Reports? If so, please provide the most recently published Annual report available.

If the Raincoast Conservation Foundation is a collection of like-minded individuals, please list its members.

Did the Raincoast Conservation Foundation apply for and receive participant funding in this proceeding? If so, how much was received?

While many of Enbridge’s question to the RainCoast Foundation are technical, the company which is currently conducting a multi-million dollar public relations campaign in favour of the pipeline, asks:

Please confirm that the “What’s at Stake? study” was prepared for use as a public relations tool, to advocate against approval of the Northern Gateway.

Enbridge also appears to be gearing up for personal attacks on two of the most vocal members of Kitimat’s Douglas Channel Watch, Murray Minchin and Cheryl Brown, who have been appearing regularly before District of Kitimat council to oppose the Northern Gateway pipeline.

 

Murray Minchin
Murray Minchin of Douglas Channel Watch addresses protesters at Kitimat City Centre Mall, Sunday, June 24, 2012, He talked about how he has learned as he goes along in examining Enbridge documents (Robin Rowland/Northwest Coast Energy News)

Credentials

On Murray Minchin, Enbridge asks:

Written Evidence Regarding Proposed Liquid Petroleum Pipelines from the proposed Nimbus Mountain West Portal to the Kitimat River Estuary submitted by Murray Minchin of Douglas Channel Watch…. Supplemental Written Evidence Photographic Evidence Regarding Proposed Liquid Petroleum Pipelines from Nimbus Mountain to the Kitimat River Estuary submitted by Murray Minchin of Douglas Channel Watch….

Mr. Minchin provides extensive opinion relative to geotechnical and other technical matters. Request: Please provide Mr. Minchin’s curriculum vitae which includes his education, training and employment history, to demonstrate his qualifications to provide geotechnical and other technical opinions that appear….

Minchin is one of Enbridge’s strongest opponents in Kitimat and in his various appearances (the latest at the anti-Enbridge demonstration in Kitimat on Sunday, June 24, 2012, Minchin has told the audiences that he is self-taught and has spent much of his spare time over the past few years studying the documents Enbridge has filed with the JRP.

As for Cheryl Brown, a vocal critic of the Enbridge Community Advisory Board process, Enbridge has filed a long series of questions about her involvement with the CAB, including asking how many meetings she has attended (see document below)

Two of Enbridge’s questions about Brown stand out

Has Ms. Brown offered a suggestion for a speaker that would have provided a differing viewpoint from those of Northern Gateway?

Many people in Kitimat, not just the outspoken members of Douglas Channel Watch, say they do not trust the Community Advisory Board process. When the CAB held a meeting recently to discuss marine safety, a meeting that was heavily advertised in Kitimat Terrace area, the CAB facilitators ( from a Vancouver -based company) attempted to bar the media, including this reporter, from this “public” meeting, until apparently overruled by Enbridge’s own pubic relations staff. On the other hand, everytime Douglas Channel Watch has appeared before the District of Kitimat Council to request a public forum on Gateway issues, DCW has always insisted that Enbridge be invited to any forum, along with DCW and independent third parties.

Ms. Brown states that Enbridge has not addressed the hard questions. Please confirm that Northern Gateway responded to questions put forth by the Douglas Channel Watch in Letters to the Editor in both the Kitimat Northern Sentinel and Terrace Standard in August of 2009.

Here Enbridge appears to be basing its case on one letter to the editor that appeared in local papers three years ago. During the public comment hearings that the JRP held at Kitamaat Village earlier this week, numerous people testified time and time again that Enbridge was failing to answer major questions about the pipeline and terminal, by saying that those questions would be answered later, once the project is approved.

Bird watching

In one series of questions, Enbridge is demanding a professional level database from the Kitimat Valley Naturalists, the local birdwatching group. Quoting a submission by the naturalists group, Enbridge asks

Paragraph 2.2, indicates that the Kitimat Valley Naturalists has birding records for the estuary for over 40 years and that Kitimat Valley Naturalists visits the estuary at least 100 times per year.

Paragraph 2.3 indicates the Kitimat Valley Naturalists have local expertise in birds of the Kitimat River estuary as well as other plants and animals that utilize those habitats.

Request: To contribute to baseline information for the Kitimat River estuary and facilitate a detailed and comprehensive environmental monitoring strategy, please provide the long term database of marine birds in and adjacent to the Kitimat River estuary, with a focus on data collected by the Kitimat Valley Naturalists in recent years, and where possible, the methodology or survey design, dates, weather and assumptions for the data collection.

Today the Kitimat Valley Naturalists, three local retirees, Walter Thorne, Dennis Horwood and April Macleod filed this response with the JRP:

Northern Gateway has specifically requested the long-term database of birds occurring over many years within the Kitimat River Estuary. The data we have collected includes monthly British Columbia Coastal Water Survey (BC CWS) and yearly Christmas Bird Counts (CBC). The data from
these bird counts are available on the web or in print form.

For access to BC CWS enter http://www.bsc-eoc.org

For access to CBC data, enter http://birds.audubon.org

Historical results for CBC counts have also been published by the journal American Birds. The earliest CBC count for Kitimat was 1974.

In regard to the long-term database, we have significant numbers of records for the foreshore of the Kitimat River Estuary. The number increases when the larger estuary perimeter is considered. These cover a 40-year period with the majority in the last 20 years. We would be willing to provide this information in a meaningful format.

The Kitimat Valley Naturalists, however, lack the expertise or financial ability to convert the data into a format that would address Northern Gateway’s interest in methodology, survey design, dates, weather, and assumptions for data collection.

Alternatively, we do have access to a consulting firm, which is willing to analyze our data and convert it to a useable and practical design. We assume, since this is a considerable undertaking in both time and cost, that Northern Gateway would be willing to cover the associated fees.

We look forward to hearing back from Northern Gateway and pursuing this with a budget proposal.

Northwest Coast Energy News consulted data management experts who estimated that complying with the Enbridge request would likely cost between $100,000 and $150,000.

First Nations

Some Wet’suwet’en houses have opposed the Pacific Trails Pipeline, and while negotiations with Apache Corporation are continuing, Enbridge is asking the First Nation for details of what is happening with that pipeline.

Is it the position of the Office of the Wet’suwet’en that each First Nation whose traditional territory is traversed by the proposed pipeline has a veto on whether it is approved or refused?

Please confirm that the Office of the Wet’suwet’en opposed approval of the Pacific Trails Pipeline (also known as the Kitimat Summit Lake Looping Project).

Does the Office of the Wet’suwet’en continue to oppose construction of the Pacific Trails Pipeline?

Have the First Nations who are proposing to participate as equity owners in the Pacific Trails Pipeline Project advised the Office of the Wet’suwet’en that they accept that the Office of the Wet’suwet’en has a right to veto approval and construction of that Project?

Please confirm that the First Nations holding an equity ownership position or entitlement in the Pacific Trails Pipeline Project (also known as the Kitimat-Summit Lake Looping Project) include:
• Haisla First Nation
•Kitselas First Nation
•Lax Kw’alaams Band
•Lheidli T’enneh Band
•McLeod Lake Indian Band
•Metlakatla First Nation
•Nadleh Whut’en First Nation
•Nak’azdli Band
•Nee Tahi Buhn Band
•Saik’uz First Nation
•Skin Tyee First Nation
•Stellat’en First Nation
•Ts’il Kaz Koh First Nation
•West Moberly First Nation
•Wet’suwet’en First Nation

The majority of questions filed with the Coast First Nations are technical challenges to studies filed by the coalition. Enbridge also filed questions with the Gitga’at, Gitxaala, Heiltsuk Nations and the Metis Nation of Alberta.

(Disclosure: The author, who is also a photographer, sometimes accompanies members of the Kitimat Valley Naturalists to photograph birds during the time they are doing the counts)

Enbridge Cover letter to JRP Information Requests to Intervenors (pdf)

Information Request Coastal First Nations (pdf)

Information Request Haisla (pdf)

Information Request Douglas Channel Watch (pdf)

Information Request Living Oceans Society (pdf)

Information Request Raincoast Conservation (pdf)

Information Request Wet’suwet’en (pdf)

Information Request Kitimat Valley Naturalists (pdf)

Kitimat Valley Naturalists response to Enbridge (pdf)

 

TransCanada to build Shell’s “Coastal Gaslink” natural gas pipeline to Kitimat

Trans Canada logoShell Canada and its Asian partners have chosen TransCanada Corporation to design, build, own and operate the proposed natural gas pipline to Kitimat, now called the Coastal GasLink project.

The estimated $4-billion pipeline will transport natural gas from the Montney gas-producing region near Dawson Creek, in northeastern British Columbia to the proposed natural gas export facility at Kitimat, BC.

The LNG Canada project is a joint venture led by Shell, with partners Korea Gas Corporation, Mitsubishi Corporation and PetroChina Company Limited.

A news release from TransCanada says “Shell and TransCanada are working toward the execution of definitive agreements on the Coastal GasLink project.”

In the release, Russ Girling, TransCanada president and CEO says:

Our team has the expertise to design, build and safely operate pipeline systems. We look forward to having open and meaningful discussions with Aboriginal communities and key stakeholder groups, including local residents, elected officials and the Government of British Columbia, where we will listen to feedback, build on the positive and seek to address any potential concerns. Coastal GasLink will add value to British Columbians, particularly Aboriginals and communities along the conceptual route, by creating real jobs, making direct investments in communities during construction and providing economic value for years to come.

TransCanada says the company has approximately 24,000 kilometres of pipelines in operation in western Canada including 240 kilometres of pipelines in service in northeast BC. Another 125 kilometres of proposed additions either already having received regulatory approval or currently undergoing regulatory review. These pipelines form an integral and growing part of TransCanada’s NOVA Gas Transmission Ltd. (NGTL) System, which brings natural gas from Alberta to British Columbia to a hub near Vanderhoof.

Girling said in the release:

TransCanada is a leading energy infrastructure company in North America, with a 60-year history of safe, efficient and reliable operation of our assets and a respect for the communities and environments where we operate. We appreciate the confidence that Shell and its partners have placed in us to build, own and operate this natural gas pipeline in British Columbia. We will work collaboratively with them, Aboriginals and other stakeholders as we launch into the initial phases of consultation and regulatory review.

LNG Canada logo

Project parameters

 

In it’s release TransCanada describes the potential Coastal GasLink pipeline project this way:

  • Receipt point: Near Dawson Creek, BC
  • Delivery point: Proposed LNG Canada facility near Kitimat, BC
  • Product: Natural gas from BC’s abundant Montney, Horn River and Cordova basins and elsewhere from the Western Canada Sedimentary Basin
  • Length of route: Approximately 700 kilometres of large diameter pipe
  • Initial pipeline capacity: In excess of 1.7 billion cubic feet of gas per day
  • Anticipated jobs: Estimated 2000-2500 direct construction jobs over a 2- during construction 3 year construction period
    Estimated cost: Detailed cost information will be developed following completion of project scoping and planning. The current estimate is approximately $4 billion
  • Regulatory process: Applications for required regulatory approvals are expected to be made through applicable BC provincial and Canadian federal processes
  • Estimated in-service date: Toward the end of the decade, subject to regulatory and corporate approvals

Pipeline route

TransCanada says: “The final pipeline route will take into consideration Aboriginal and stakeholder input, the environment, archaeological and cultural values, land use compatibility, safety, constructability and economics.:

Pacific Trails Pipeline
The Pacific Trails Pipeline would go cross country to Kitimat. (PTP)

At this point there are two possible routes for the pipeline west of Vanderhoof. One route would be to follow the existing Pacific Northern Gas route that roughly parallels Highway 16. The second possibility is a cross-country route, which may lead to controversy. The Pacific Trails Pipeline, which would feed the KM LNG partners (Apache, Encana and EOG) goes across the mountains from Smithers. While the PTP project has the approval of most First Nations in the regions, Apache and PTP are still in negotiations with some Wet’suwet’en houses over portions where the pipeline would cross the traditional territory of the houses. The much more controversial Enbridge Northern Gateway pipeline follows a similar cross-country route and faces much stiffer opposition than the Pacific Trails Pipeline, due to the content of that pipeline, mainly diluted bitumen and because, critics say, Pacific Trails managed to secure the most geologically stable cross country route earlier in this decade when the pipeline was originally planned to import, not export, natural gas.

TransCanada says the Coast Gaslink pipeline will also have an interconnection with the existing Nova Gas (NGTL System and the liquid NIT) trading hub operated by TransCanada.  The company says:

A proposed contractual extension of TransCanada’s NGTL System using capacity on the Coastal GasLink pipeline, to a point near the community of Vanderhoof, BC, will allow NGTL to offer delivery service to its shippers interested in gas transmission service to interconnecting natural gas pipelines serving the West Coast. NGTL expects to elicit interest in and commitments for such service through an open season process in late 2012.

That means that the Asian customers will not be just dependent on natural gas from northeast British Columbia.  Instead the “molecules” of natural gas from Alberta will join the stream heading to Kitimat. “Open season” in the energy industry is an auction where potential customers or transporters bid for use the pipeline.

In the release Girling says:

The potential Coastal GasLink pipeline project will allow British Columbians, and all Canadians, to benefit from the responsible development of valuable natural gas resources and will provide access to new markets for that gas. The project will also create substantial employment opportunities for local, skilled labourers and businesses as part of our construction team,” concluded Girling. “We know the value and benefits that strong relationships in British Columbia can bring to this project and we look forward to deepening those ties as our extensive pipeline network grows to meet market and customer needs.

TransCanada Corp. is no stranger to controversy, the company is the main proponent of the Keystone XL pipeline from Alberta to the US Gulf Coast. Portions of that pipeline were put on hold by President Barack Obama pending further review and Keystone has become a hot issue in the current American presidential election.

BC approves Pacific Trails Pipeline amendments

Anti-Pacific Trails Pipeline banner
A couple from Vancouver, who refused to give their names, unfurl an anti-Pacific Trails Pipeline banner at the British Columbia legislature in Victoria, Sunday, April 15, 2012. The man said he against all pipelines and that he was supporting the Wet’suwet’en First Nation. About 1,000 people marched through downtown Victoria to oppose the Enbridge Northern Gateway pipeline and coastal tanker traffic. (Robin Rowland/Northwest Coast Energy News)

 

The BC Environmental Assessment Office has approved an application to increase the capacity of the proposed 463 kilometre Pacific Trails Pipeline from the Summit Creek natural gas hub near Prince George to Kitimat.

The $1 billion pipeline project is crucial to the success of the KM LNG liquified natural gas export terminal at Kitimat, a partnership of Apache Corp., Ecana and EOG Resources.

The main thrust of the application was to increase the capacity of the pipeline to 1066.8 mm (42 inch) from the originally proposed 914 mm (36 inch). Pacific Trails will change the location of pump stations since the original proposal was for an import pipeline while now it is for export. There are also minor changes.

The proposal was generally considered pro forma since the main environmental review was completed under the original application approval in 2008 and the BC government was only considering the changes proposed by PTP.

The government report says officials were convinced that Pacific Trails would be able to handle problems with increased traffic and any potential risk involved in drilling under watercourses.

The Haisla submitted a number of technical questions about the impact of the larger pipes. While the BC Assessment office noted in its report that the Pacific Trails Pipeline is generally outside Haisla traditional territory, it is clear from the documentation that one of the Haisla concerns are any impacts on the Kitimat River watershed, as the questions concern the Stuart and Endako Rivers, the Morice and Gosnell Creeks and Weedene and Little Wedeene Rivers. The EAO ruled that the Haisla questions were outside the scope of the amendment or should be addressed in the “permitting process.”

Some Wet’suwet’en houses have been vocal in their opposition to the Pacific Trails Pipeline crossing their traditional territory, The Office of the Wet’suwet’en filed a strong objection to certain parts of the plan.

Given that the Minister of Natural Resources Joe Oliver and the federal government are now working to fast tracking all major resource projects, a comment from David de Wit, Wet’suwet’en natural resources manager is significant:

Fast tracking projects may result in overlooking important details [that] can have detrimental consequences. It is important to point out that the diligence required post-certification to ensure that impacts and effects on important resources are prevented or avoided is not satisfactory. This leaves the burden and legacy of any impacts to be borne by the Wet’suwet’en.

The letter goes on

We have invested considerable time and resources in the BC EAO review only to find that the level of detail required pre-certification leaves far too many unanswered questions critical for ensuring environmental effects and identification of potential infringements to our Title and associated rights from the project are avoided or minimized.

The EAO responded by saying the issues were covered by the original assessment and through the Oil and Gas Commission permit process. The letter from the Wet’suwet’en was, however, passed on to the Executive Director for further consideration

The Pacific Trials Pipeline, also known as the the Summit-to Kitimat pipeline will supply the Kitimat LNG project, a venture of the KM LNG partners, Apache Corp., Encana Corp., Apache Canada and EOG Resources. The $4.5-billion LNG terminal and facility will likely be operational by 2015, depending on how long it takes for the partners to line up Asian buyers.

Documents

BC Environmental Assessment office ruling on Pacific Trails Pipeline  (pdf)

Wet’suwet’en submission to the BC EAO  (pdf)

 

 

Pacific Trails Pipeline holds community meetings

Pacific Trails Pipeline meeting
Hatha Callis, left, of Progressive Ventures Construction, discusses contracting possibilities with the staff of the Pacific Trails Pipeline at a community meeting in Terrace, BC, March 1, 2012 (Robin Rowland/Northwest Coast Energy News)

Pacific Trails, which has proposed to build a natural gas pipeline from Summit Lake, near Prince George, to Kitimat, held four community meetings in Vanderhoof, Burns Lake, Houston and Terrace, to discuss changes to a plan for the pipeline that was approved the BC Environmental Assessment Office in 2008.

Paul Wyke, a spokesman for Apache Corp., one of the main investors in the Kitimat LNG project as well as the Pacific Trails Pipeline, said the companies considered the meetings successful. About a dozen people showed up in Vanderhoof and Burns Lake and about 25 to 30 in Terrace and Houston, perhaps an indication of the lack of controversy, so far, for the PTP, which will follow roughly the same route as the Enbridge Northern Gateway pipeline. Apache and Pacific Trails also took part in a job fair on February 10 in Burns Lake, the town hard hit when a huge explosion flattened the Babine Forest Products sawmill on January 20,  killing two, injuring 19 and left about 250 workers jobless.

About half the people showing up at the meetings were interested in job or contracting opportunities while the rest were concerned about environmental issues.

Nathan Hagan-Braun, project assessment manager for the BC Environmental Assessment Office, who also attended the community meetings, said that a decision on approval of the amendments to the PTP plans will likely come in May.

PTP says that once the project adjustments are approved, logging and clearing is scheduled for the summer of 2012, pipeline construction in 2013 and 2014, with the pipeline going into operation in 2015.

More pipeline debate coming to the Northwest: Changes to the Pacific Trails natural gas Pipeline

Pacific Trail Pipelines map
The Pacific Trails Pipeline map as of Feb. 2012. (PTP/BCEAO)

Another pipeline debate is about to open in the northwest. This time for  changes to the Pacific Trails (natural gas) Pipeline, that will run from Summit Lake, just outside Prince George, to Kitimat.

Public information meetings will be held in Terrace, Houston, Burns Lake and Vanderhoof in the next couple of weeks.

The PTP runs entirely within British Columbia, and so comes under the jurisdiction of the Environmental Assessment Office of  British Columbia.   The application to build the PTP was filed in 2005 and approved in 2008 which means the process for the amendments will go much faster than the current Northern Gateway Joint Review hearings for the Enbridge twin bitumen/condenseate pipeline which are expected to last at least another eighteen months.

Pacific Trails is asking to

  • Change the location of the compressor station;
  • Establish two new temporary stockpile sites;
  • Make pipeline route modifications

The period for commenting on the Pacific Trails Pipeline amendments opens on February 27 and closes March 28. The public meeting on the changes to the compressor station were held in Summit Lake last September.

The documents filed with the BCEAO say that Pacific Trails Pipelines is in ongoing negotiations with First Nations where the PTP will cross their traditional territory.

The natural gas project has general support in northwestern  BC, and the relations between First Nations and PTP, and Apache, the main backer of the Kitimat LNG project are much better than those with Enbridge. (The PTP would supply the liquified natural gas terminals in Kitimat)

Significantly, the documents show that the PTP is trying to enter separate negotiations with the Wet’suwet’en houses that are now objecting to the pipeline route through their traditional territory.

The filing says:

In addition, PTP is now consulting, or making all reasonable efforts to consult, with one of the 13 Wet’suwet’en Houses as a discrete entity. PTP was informed in February 2011 that Chief  Knedebeas’s House, the Dark House, was no longer part of the Office of the Wet’suwet’en  although the latter still maintains responsibility for the welfare of all Wet’suwet’en lands and  resources. Consultation that took place prior to this year with the Office of the Wet’suwet’en included consultation with the Dark House. PTP has been diligent in seeking to consult with  the Dark House since April 2011. The spokesperson for Chief Knedebeas of the Dark House, Freda Huson, states that she also represents a group called Unist’ot’en.

 

 

But it’s Enbridge that is the sticking point, and could bring controversy to this amendment request.  The Wet’suwet’en houses that blockaded a PTP survey crew last fall said they were worried that the Northern Gateway pipeline follows roughly the same route as the PTP. The PTP application was filed and approved long before the controversy over the Enbridge Northern Gateway began to heat up.

One reason is that original approval was for a pipeline to import natural gas before the shale gas boom changed the energy industry.  As PTP says in the application to change the compressor station.

When the original purpose of the PTP Project was to transport natural gas from an LNG import facility at Kitimat to the Spectra Energy Transmission pipeline facilities at Summit Lake, the design called for the installation of a mid-point compressor station to enable the required throughput of natural gas. This compressor station was sited at the hydraulic mid-point of the pipeline. The location of the compressor station in 2007 was south of Burns Lake and just east of Highway 35.

Now that the PTP Project is designed to move natural gas from Summit Lake to Kitimat, or east to west, a compressor station is required at Summit Lake rather than at the hydraulic mid-point of the pipeline. The new Summit Lake compressor station is required in order to increase the pressure of the natural gas from where it is sourced at the Spectra Energy Transmission pipeline facilities.

The EAO will hold open house meetings on the pipeline route changes from 4 pm to  8 pm at each location at

Monday, February 27, 2012
Nechako Senior Friendship Centre, 219
Victoria Street East
Vanderhoof, BC

Tuesday, February 28, 2012
Island Gospel Gymnasium
810 Highway #35
Burns Lake, BC

Wednesday, February 29, 2012
Houston Senior Centre
3250 – 14th Street W
Houston, BC

Thursday, March 1, 2012
Best Western Plus Terrace Inn
4553 Greig Avenue
Terrace, BC

The EAO says: Displays containing information on the proposed amendments will be available for public viewing. The EAO will be available to answer questions on the amendment process. The Proponent will be available to answer questions on the Project and proposed amendments.

The documents show there are route changes to the pipeline route along the Kitimat River, but those are considered “minor route adjustments” so no meetings are planned for Kitimat.

Documents

PTP meeting schedule

Complete filing documents from PTP are available on the BCEAO site here.

Pacific Trails Pipeline