Kitimat to issue tsunami hazard and evacuation map

Teron Moore explaining a tsunami
Teron Moore of Emergency Management explains a surge tsunami at a emergency preparedness forum at Riverlodge, Nov. 4, 2013 (Robin Rowland/Northwest Coast Energy News)

The District of Kitimat plans to issue a tsunami hazard and evacuation map for the town.

Fire Chief Trent Bossance and Emergency Coordinator Bob McLeod told a forum on emergency preparedness on November 4 that the map is in the final stages of preparation and will be distributed to residents in the near future.

The forum was also told that the former District Council Chambers on the second floor of the public safety building (the fire hall) is being converted into “a fixed, permanent emergency operations centre,” with upgraded communications and computer equipment.

McLeod said that over the past months, since the October 27, 2012 Haida Gwaii earthquake and the January 31, 2013, Sitka, Alaska earthquake, Kitimat’s emergency planners have been working with the province to update the original emergency plan which was first developed about 12 years ago.

McLeod said that the plan was recently sent to a consultant who told Kitimat the overall plan only needed minor charges. Now, however, there is new emphasis on tsunami planning.

Fire Chief Bossance says emergency planners have been consulting with scientists who have concluded that if a tsunami was to come into Kitimat from Douglas Channel, it most likely would be between two and four metres, so to be on the safe side, the District is planning on a “six metre baseline” from the high tide line. That means the hazard map will be based on the possibility of a six metre tsunami coming up the Channel. ( A worst case scenario, however, could result in a bigger tsunami, perhaps eight metres).

The forum at Riverlodge was part of an effort by both federal and provincial officials to visit communities that were affected by the two recent major earthquakes, inform local residents of updated planning by the federal government and British Columbia and to let those officials know what local concerns are.

Weather warnings
Anne McCarthy of Environment Canada explains that tsunami warnings on the Environment Canada website will be similar to weather warnings. Weather radios can be seen on the table in the foreground. (Robin Rowland/Northwest Coast Energy News)

Anne McCarthy of Environment Canada says her agency is planning to expand the Weather Radio system, most popular in Tornado Alley in the United States, to the northwest coast. There are already Weather Radio transmitters in the Lower Mainland. Kitimat, however, at this point, is low on the priority list, with Prince Rupert and then Sandspit and Masset roll outs in the coming year.

Environment Canada also plans to implement a Twitter feed sometime in 2014, that would supplement other Twitter feeds from Emergency Planning BC and the recently renamed US National Tsunami Warning Center (formerly the Alaska and West Coast Tsunami Warning Center), operated by the US National Oceanic and Atmospheric Administration. Tsunami warnings will also be posted on the Environment Canada website in the same way weather and other alerts are posted.

Surge of water

If an earthquake-triggered tsunami was to strike Kitimat from Douglas Channel, it would not be the big waves seen in the movies and during the 2004 Southeast Asia tsunamis, Teron Moore, a seismic specialist with the BC Provincial Emergency Management said. Given the configuration of Douglas Channel and its many islands, a tsunami is more likely to be a “surge” of water.

“Tsunamis can appear like a rising tide that quickly keeps coming in, “ Moore said. “A normal tide would stop at the high tide line.Sometimes a tsunami can be a quickly rising tide that keeps on coming….A wave can come in for 30 minutes. it’s a long, long time that these waves just keep on coming in and you wouldn’t see the crest of a wave, necessarily and then they come out. So it’s almost like that river comes in for half an hour and then can go back out for half an hour. There’s a tendency for people first of all to not think it’s dangerous, A second, third and fourth wave can come in.”

Tsunami events can last as much as eight to twelve hours, Moore said. Depending on the location of the triggering earthquake, Kitimat is likely to have some warning of a possible incoming earthquake-triggered tsunami.

The second type of tsunami could be triggered by a submarine landslide in Douglas Channel, as happened with  slope failures in October 17, 1974 (triggering a 2.4 metre tsunami at low tide) and on April 27, 1975 (generating an 8.2 metre tsunami). The 1975 tsunami destroyed the Northland Navigation dock near Kitimat and damaged the Haisla First Nation docks at Kitamaat Village.

“The slide in 1975 generated an eight metre wave that came from Moon Bay across to Kitimat Village, now that is huge wave. We can’t really predict an event like that, it would happen so fast,” McLeod said.

Hazard areas

Two major fault lines could trigger shaking in Kitimat and might possibly also mean that there could be a tsunami.

The first is the Cascadia fault which goes from the northern California to the western edge of Vancouver Island. The second is the Queen Charlotte fault off Haida Gwaii.

The Cascadia fault, Moore said, is an active subduction zone. “A subduction zone is where two of earth’s large plates are colliding against each other and one of those plates is going under neath another one of those plates.’ The plates get stuck and build up strain “almost like pulling an elastic band. At sometime the elastic band snaps creating a very large earthquake,” Moore said.

The Juan de Fuca plate is a very large plate subducting underneath the continent of North American plate. The Juan de Fuca plate has been stuck for some 300 hundred years since the last time it ruptured. There is a rupture about every 500 years or so in this zone that triggers a large earthquake.

“But, Moore warned, “it’s 500 years plus or minus 200 years. even though there’s a lot of modelling doing on, there’s still a lot of uncertainty and so its a concept that it is difficult to get an understanding of.

“The Haida Gwaii or Queen Charlotte fault….is one that is going side by side. It’s called a strike slip fault. “A strike slip fault can still cause earthquakes it can still rupture and cause shaking, but if it doesn’t have that subduction, you tend to not have tsunamis. “Although science says the Charlotte fault has a low likely of causing a tsunami, but as we know from last year the Charlotte fault did cause a tsunami, quite a significant tsunami in some areas, not one that impacted Kitimat but one that could have impacted Kitimat and did impact, the west coast of Haida Gwaii quite significantly.

“We were very lucky there weren’t any large communities out there. We very lucky that it wasn’t at the height of summer tourist season with kayakers and fishing lodges. In some areas, the way the wave came into certain bays, created a five metre tsunami. “So if you were on the beach and a five metre tsunami was coming up the inlet, that’s a significant tsunami. What I want to emphasize is that people here who felt the shaking, they should have gone to high ground.”

Emergency procedures

In the case of a major earthquake, where residents of Kitimat feel shaking, then they should take appropriate precautions, the forum was told, including moving to higher ground if they think they should.

“Once the maps are available we will get them out to the public. I think it is important for the public to understand and visualize, where they sit within that six metre height. Always if you’re unsure go to higher ground. It’s easier to come back if your house is unaffected, than trying to leave if your house is being affected,” McLeod said.

There would be no reason to actually leave Kitimat, according to Emergency Management B.C.’s northwest regional manager Maurie Hurst. “Kitamaat Village should evacuate to higher ground. I would not like to see them coming down that coast highway to Kitimat, that’s not safe. Stay where you are, move to higher ground.

“At Sandspit higher ground is quite a ways a way from the community for them they are having to a bit of travel but in Kitimat higher ground is a ten minute walk, a five minute drive, it’s right here within the community.”

After an earthquake occurs, the National Tsunami Warning Center in Homer, Alaska evaluates the situation and sends out alerts to Canadian and US government agencies. In British Columbia, Emergency Management BC is the lead agency.

It communicates with Environment Canada, the Canadian Coast Guard, local emergency officials and the media. In Kitimat, it is the local emergency management officials and first responders who are in charge.

After misinformation went out over social media during the October 27, 2012 event, McLeod says the District of Kitimat now has social media specialists at the Emergency Operations Centre. “We’ve modified the district website, so there will be banners going up on it, just to get accurate information out.” Using the baseline of six metres above high tide, McLeod says the Rio Tinto Alcan wharfs, MK Bay Marina and the Kitamaat Village dock would most likely be affected.

While that means most of the Kitimat community may not be affected, there are other factors involved, according to Chief Bossance. “Because of all the islands we have in the waterways, we’re not going to have that big wave, we are going to have that surge,” he said.  “If a tsunami is coming, we always look at the earthquake, what was its magnitude, obviously the higher the magnitude, the more impact it’s going to have for everyone in that case.

Kitimat Fire Chief Trent Bossance
Kitimat Fire Chief Trent Bossance explains emergency procedures in case of a tsunami (Robin Rowland/Northwest Coast Energy News)

“We looked at seven point seven the most recent one, (on Haida Gwaii)it had very little impact here due the fact that it was a slip slide.

“The other fault, the one along Vancouver Island, is a different fault altogether. The problem we’re having with us right now, there haven’t been a lot studies conducted with how that waters going to impact coming from that direction into us.

“If it’s a significant shaking, don’t wait for us to tell you to go high ground.

“So they’re saying anywhere from two metres, depending on high tide up to four. We took the next step and said we’re going to go with six to build in a safety factor.

“But saying that, we have to know what our tide heights are at the time the tsunami strikes. The other thing we look at is the magnitude of the quake.

“So if you’re living down in the Kildala area and if we determine that it’s an eight metre event, then evacuation might be necessary.

“Everything is do dependent on what happens from the time of the earthquake, the tides, the weather. If we’re having significant rainfall at the time, that would mean the river would swell. If it’s the fall when we get our monsoons, that may change the fact of what’s going to happen.

“If you look at the dike, the dike is what is separating us from the river. Kitimat is sort of odd in that we have a dike that surrounds a lot of the town, but there’s an open spot in it, so it’s going to funnel through there and into the lower lying areas of the Kildala area.”

Under most circumstances, Bossance said, the City Centre Lower Parking lot would be above the danger zone.

“Just because we’re looking at six doesn’t mean it’s not going affect everyone, our plan is constantly evolving. Local officials are the ones to tell you it is safe to go back home.”

Boaters concerned

There was one question arose at the forum that the panelists had no immediate answer for. What should boaters do if there is a tsunami warning while they are on the Channel, especially during the summer or the peak salmon season when there could a hundred or so boats on the water?

“Douglas Channel is a deep channel,” Bossance said. “It’s in the shallow water and it builds, but here it is relativey deep water until it’s close to shore. That’s why it’s such a great deep sea port,its deep and then it shallows fairly quickly that’s why they’re saying we’re not going to have that big wave coming in., its going to be a surge of water.”

The panel they would investigate the situation further but at the moment they presume that it would be best to go the center of the channel. “The usually advice to make for open water that’s what the [US] coast guard recommends.”

A boaters safety brochure  issued by the State of California recommends getting to 100 fathoms or 600 feet.

A similar brochure from Hawaii recommends a minimum depth of 300 feet and staying clear of a harbour entrance channel during an event. The Hawaii brochure warns that if a boater is not on the water, they should not go down to their boats.

The brochure notes that: “In 1964 in Kodiak, Alaska, a warning was received prior to the arrival of the first tsunami waves. People who rushed down to the harbor to secure or take their boats out to sea constituted two thirds of all the fatalities caused by the tsunami at Kodiak City.” There is, so far, no similar brochure issued by the province of BC.

The panel suggested that a sign be posted at MK Bay, outlining safety procedures. Moore said: “The other thing we’re thinking about is there could be wave action for eight to ten to twelve hours maybe. If you need to  have eight to ten hours of gas to fight the current, eight to ten hours of food, all the things you’re going to need. There were cases in California where boats kept on idle to keep being driven into shore and then they run out of gas, and then they ended up in dangerous situations. Each individual has to assess how big is their boat and where it is in the water and how it’s going to come in.

“For me I would rather be on shore if I could get to shore quick enough and get to higher ground but if you’re closer to the ocean and you have a big vessel and have the gasoline for 10 hours, then may be you’re better off.”

The Hawaii brochure also warns that watches and warnings for mariners on VHF Channel 16 (the calling and emergency channel) may be different for those on land. Hurst noted that some people in Haida Gwaii were picking up US Coast Guard advisories on VHF 16 which said the October tsunami warning had been downgraded. While the warning was downgraded for Alaska, the warnings continued for Haida Gwaii.

Hurst said those monitoring Channel 16 must be be sure they are monitoring the advisories on 16 from Prince Rupert Coast Guard Radio.

Another problem, given the configuration of Douglas Channel, is that if a tsunami severely damages MK Bay, Minette Bay, the Village Dock, the RTA docks and Nechako dock, there may be no place for boaters to return to safely given the rocky shore of Douglas Channel, which is quite different than coasts of California or Hawaii where boating is part of the emergency planning.

“The Kitimat emergency plan will have to take into consideration boaters on the water, it’s not necessarily covered by legislation but if the plan exists, they can get it out to citizens who are out on the water,” Hurst said

Preparation

72 hour emergency kit
A 72-hour emergency kit was on display at Riverlodge. It includes the civilian version of military meals ready to eat as well as both dried and canned food, water, a first aid kit and other supplies. (Robin Rowland/Northwest Coast Energy News)

“From an earthquake perspective,” McLeod said, “folks should be looking at their own home preparation, making sure your residence is as earthquake proof as you could possibly make it by anchoring things to the wall, by making every effort that things are not going to fall on you. Every October there’s going to be a shakeout, which gives all an opportunity to get under the table and practice, drop, cover and hold on.

“So know the hazards, have a plan, have an emergency kit. You rotate the products in it on say an annual basis, hopefully you never have to touch it, but it’s there if you definitely need it. The emergency kit should have supplies for both humans and pets for a minimum of 72 hours.

Planning should also take in to consideration that even if there isn’t major damage in Kitimat, due emergencies in other parts of the province, the town could be cut off for several days, resulting in shortages.

Cullen calls Clark Redford pipeline deal “a bust hand”

Skeena Bulkley Valley MP and NDP House leader is calling today’s framework deal between BC Premier Christy Clark and Alberta premier Alison Redford, “a bust hand.”

In a statement released late Tuesday, Cullen said:

MP Nathan Cullen called the BC-Alberta framework agreement struck this morning regarding Enbridge “political window-dressing” that draws a blind on truth and transparency and deals a bust hand to British Columbia.

“When it comes to the Enbridge Northern Gateway Pipeline, everything is negotiable for Christy Clark, including principals and promises made leading up to last May’s provincial election,” Cullen said.

“The reality is that none of the five conditions Ms. Clark made such a big deal about 16 months as being necessary for Enbridge to put a pipeline through our province were even remotely addressed in today’s announcement.

“The best we got after overnight negotiations and months of high drama is the ‘possibility of progress’ and a bizarre blessing that somehow allows BC to negotiate directly with Enbridge.

“Today’s agreement does absolutely zero to protect BC’s environment and economy from a bitumen disaster,” Cullen said.

“It’s a shameful political ploy that greases Ms. Clark’s real agenda, which is to pump oil through BC regardless of environmental or economic costs.

“Six months into a new mandate and Premier Clark has turned her back on promises to stand up for BC and demand a higher standard from industry.”

Cullen noted Enbridge’s social licence to operate is clearly tied to safe oil transport, effective spill response, and First Nations consent, conditions on which today’s agreement is silent.

Cullen vowed to continue fighting the Enbridge pipeline and to work toward sustainable resource development that is supported by Skeena-Bulkley Valley communities.

Ellis Ross posts development philosophy on Facebook

Haisla Chief Counsellor Ellis Ross has posted a statement on Facebook, outlining his philosophy on energy development.

 

Ellis Ross
Haisla Nation Chief Counsellor Ellis Ross at Bish Cove, June 19, 2013. (Robin Rowland/Northwest Coast Energy News)

In 2003 I was first elected to Haisla Nation Council, and I was intent on opposing just about every economic development project coming our way, from fish farms to natural gas. Fortunately experienced councilors suggested that before I took any hard and fast positions that I consider unbiased facts and the community’s social situation.

It didn’t take long before the full extent of our community’s problems hit home, angering and saddening me at the same time. Before my political career I was one of those who applauded political speeches on unemployment, poverty, independence, and the relationship between First Nations and the Crown. But it was now clear that 30 years of speeches and government programs had changed nothing for the average Haisla person who just wanted a job. Unemployment was still at 60 per cent, housing was based on hand-outs from Ottawa, and, worst of all, substance abuse and suicides were commonplace and were destroying our people’s hopes for a brighter future.

I was fortunate to have found work outside of my reserve for most of my adult life but there are only so many jobs in depressed economies and the long term jobs were kept out of our reach by organizations associated with the corporations set up in our territory. The result was our young men and women either had to leave home for employment or stay home and accept seasonal work (UIC) or welfare. Leaving ancestral homes is a hard decision for First Nations to make. The land is connected to our protocols, our culture and to our past.

Many reasons have contributed to the demise of our peoples and communities but perhaps the foremost is the culture of dependence. Dependance in our case was from the top down; from council dependant on government funding to the individual band member being dependant on council or welfare. Our people are not lazy. The culture that preceded the non haisla culture was one of hard work to bring in food, resources and wealth. That culture has not merged so well with non haisla culture but our work ethic is the same as the non haisla culture.

If poverty is the only lifestyle you know, it is very difficult to know there is a way out, much less thinking of a way to get out of it. The individual band member that is watching development in their territory and watching the wealth being generated without having an opportunity to be a part of it is going to have resentment.

Those Nations which are succeeding — strong employment levels, healthy communities, few social ills — appear to have gained a level of independence and have done it mostly through economic development. The newer discussions are those concerning shiftwork, double time, new bosses and how paychecks will go towards the next hunting trip or holidays to vancouver or elsewhere.

We have many proposals put in front of us now that we have to sift through. When we look at these proposals we have to find accurate information in terms of impacts, benefits and feasibility. Sub topics can be right of ways, fracking, logging practices, financing, permitting, corporate structures, emissions, land ownership and the list goes on and on. We do have to consider the future but we also have to consider the present and the situation we know that our membership is in and try to put them in a position where they can help themselves.

So far, the outlook has been positive. Our people have jobs. They have hope. They are confident about their futures. The despair that comes with poverty is slowly disappearing but we have more work to do to ensure their confidence can be sustained. We know that to become a strong independent Nation, we need to have strong independent members.

We will continue to look at the contentious issues that are in front of us and will try as much as we can to resolve with both the crown and the proponent but we cant lose sight of one of the biggest reasons of why we’re doing what we do. Our members need a future.

By the way, the work we have done to date has not only assisted our members but has assisted the region and non Haislas in ways that we have not yet even started to measure yet.
Ross.

Ross later posed two comments:

Ellis Ross: got some good feedback on this but also got feedback that it was unclear on the point I was trying to make so I rewrote it. the point was in light of all the issues we have to look at, we can’t lose sight of the social factor in that some Haislas (and non Haislas) deserve the employment/contract opportunity that comes with proposed projects.

Ellis Ross: fracking, emissions, land ownership, etc… are issues that are extremely important but our people living in poverty with no hope is also an extremely important issue.

BC Alberta agree on five energy conditions: Twitter reaction

BC Alberta agreement on five conditions: BC news release

VANCOUVER – After officials worked through the night, Alberta Premier Alison Redford and British Columbia Premier Christy Clark today announced a framework agreement between the two provinces on moving energy resources to new markets.

“Agreement on B.C.’s 5 conditions is a necessary first step before any proposals can be considered for approval,” said Premier Christy Clark. “It is the way we do business in B.C. and it works. By working together with Alberta through these principles we can grow our economies, and strengthen Canada’s economy overall.”

The framework will also see the Government of British Columbia endorse Premier Redford’s Canadian Energy Strategy.

“A key part of our Building Alberta Plan is getting Alberta’s resources to new markets at much fairer prices so we can keep funding the programs Albertans told us matter most to them,” said Premier Alison Redford. “Today’s agreement with B.C. is good news for Alberta, for British Columbia and for all Canadians. I welcome Premier Clark’s endorsement of the Canadian Energy Strategy and our shared commitment to create jobs, long-term growth and position Canada as a true global energy superpower. We look forward to continued constructive dialogue with B.C.”

The governments of B.C. and Alberta agree that British Columbia’s conditions are intended to ensure both the responsible production of energy as well as its safe transport to new markets, giving projects the social licence to proceed.

B.C.’s conditions 1-4 are designed to achieve both economic benefit and risk mitigation on increased shipments through B.C. They mirror Alberta’s legislated commitments on responsible energy production. Alberta and B.C. agree that only through intensive environmental review and protection, enhanced marine safeguards and First Nations support, can projects proceed.

On condition five, Alberta agrees that B.C. has a right to negotiate with industry on appropriate economic benefits. Both governments agree it is not for the governments of Alberta and B.C. to negotiate these benefits. Both provinces reaffirmed that Alberta’s royalties are not on the table for negotiation.

BC Alberta agree on Christy Clark’s five conditions: Alberta news release

Office of the Premier
Office of the Premier of Alberta

Alberta and British Columbia reach agreement on opening new markets

VANCOUVER – After officials worked through the night, Alberta Premier
Alison Redford and British Columbia Premier Christy Clark today
announced a framework agreement between the two provinces on moving
energy resources to new markets.

“Agreement on B.C.’s 5 conditions is a necessary first step before any
proposals can be considered for approval,” said Premier Christy Clark.
“It is the way we do business in B.C. and it works. By working together
with Alberta through these principles we can grow our economies, and
strengthen Canada’s economy overall.”

The framework will also see the Government of British Columbia endorse
Premier Redford’s Canadian Energy Strategy.

“A key part of our Building Alberta Plan is getting Alberta’s resources
to new markets at much fairer prices so we can keep funding the
programs Albertans told us matter most to them,” said Premier Alison
Redford. “Today’s agreement with B.C. is good news for Alberta, for
British Columbia and for all Canadians. I welcome Premier Clark’s
endorsement of the Canadian Energy Strategy and our shared commitment
to create jobs, long-term growth and position Canada as a true global
energy superpower. We look forward to continued constructive dialogue
with B.C.”

The governments of B.C. and Alberta agree that British Columbia’s
conditions are intended to ensure both the responsible production of
energy as well as its safe transport to new markets, giving projects
the social licence to proceed.

B.C.’s conditions 1-4 are designed to achieve both economic benefit and
risk mitigation on increased shipments through B.C. They mirror
Alberta’s legislated commitments on responsible energy production.
Alberta and B.C. agree that only through intensive environmental review
and protection, enhanced marine safeguards and First Nations support,
can projects proceed.

On condition five, Alberta agrees that B.C. has a right to negotiate
with industry on appropriate economic benefits. Both governments agree
it is not for the governments of Alberta and B.C. to negotiate these
benefits. Both provinces reaffirmed that Alberta’s royalties are not on
the table for negotiation.

While BC is told refining heavy crude is uneconomic, planning for US west coast refineries going ahead

Supporters of David Black’s Kitimat Clean project to build a refinery about 25 kilometres north of Kitimat have been met by skepticism by experts and economists from the Canadian oil patch who keep telling the people of northwestern British Columbia that to create jobs by adding value to Alberta crude is uneconomic.

The Americans, apparently, have a different view, with plans announced for shipping projects in Washington State that could handle not only oil shale crude from the Bakken Formation in the Dakotas but also Canadian “heavy crude” aimed at refineries in Californa, refineries that would require new or renovated facilities.

So let’s add another question to northwest BC’s skepticism about the Alberta oil patch. Why is uneconomic to refine in Alberta or BC, but apparently increasingly economic to refine in California given the cost of building or rebuilding facilites?

Opponents of the Northern Gateway pipeline have always speculated that any bitumen exported from Kitimat could end up in California rather than markets in Asia.

According to reports, the Vancouver, Washington,  project plans to load the bitumen on barges for shipment to California, which is likely to cause a storm of controversy with environmental groups in both states, especially if a barge, which has almost no controls compared to a tanker, foundered and ended up on the coast. [adsanity id=5199 align=alignright /]

The New York Times, on Oct. 31, looked at the issue in a report Looking for a Way Around Keystone XL, Canadian Oil Hits the Rails. The issue of moving crude by rail has been gaining traction in recent months, with growing opposition to pipeline projects. But where do those long trains of tank cars full of crude go?

Times reporter Clifford Kraus says:

The developing rail links for oil sands range across Canada and over the border from the Gulf Coast to Washington and California. Railways can potentially give Canadian producers a major outlet to oil-hungry China, including from refineries in Washington and California.

According to the Times, the plans call for two Canadian export terminals.

“We want to diversify our markets beyond just moving our product south,” said Peter Symons, a spokesman for Statoil, a Norwegian oil giant that has signed contracts to lease two Canadian oil loading terminals. “We can get that product on a ship and get it to premium markets in Asia.”

The Americans, on the other hand, are looking toward refineries.

Again the Times report says:

Several Washington and Oregon refiners and ports are planning or building rail projects for Canadian heavy crude as well as light oil from North Dakota. The Texas refinery giant Tesoro and the oil services company Savage have announced a joint venture to build a $100 million, 42-acre oil-handling plant in the Port of Vancouver on the Columbia River that could handle 380,000 barrels of oil each day if permits are granted.

Not that everything is clear sailing. The Times says there is resistance to a plan to refine heavy crude in California.

The city of Benicia, Calif., last month delayed the granting of a permit for Valero Energy’s planned rail terminal at its refinery by deciding to require an environmental impact report after residents expressed concerns that Valero would use the terminal to import Canadian oil sands crude.

Tesoro logoTesoro and its partner Savage announced the Vancouver, Washington project in April.

With access to rail and existing marine infrastructure, the Port of Vancouver is uniquely positioned to serve as a hub for the distribution of North American crude oil to West Coast refining centers. Tesoro and Savage are ideal partners for this project, having already operated in close partnership for almost ten years on the West Coast. The Tesoro-Savage Joint Venture’s combined capabilities, experience and resources are expected to create substantial benefits for the Port and the Vancouver community in the form of sustainable revenue to the Port and local jobs associated with the facility’s construction and operation.

The Tesoro news release quotes Greg Goff, President and CEO of Tesoro.

Building upon the recent success of the rail unloading facility at our Anacortes, Wash., refinery, where we have been delivering Mid-Continent crude oil via unit train in an environmentally sound and cost-effective manner, this project is the ideal next step for Tesoro as we drive additional feedstock cost advantage to the remaining refineries in our West Coast system.

While the Tesoro April release doesn’t specifically mention heavy crude or bitumen from Alberta, in August, Reuters reporting on a Tesoro results conference call said, the project would “supply cheaper U.S. and Canadian crude to refineries all along the West Coast – both its own and those run by competitors.”

The project, which would initially have capacity of 120,000 barrels a day and could be expanded to 280,000 BPD, is the biggest so far proposed to help Pacific Coast refineries tap growing output of inland U.S. and Canadian heavy crudes.

The project, where North Dakota Bakken and Canadian crude would travel by rail to the marine facility in Vancouver, Washington and then barged to refining centers, is being planned with joint venture partner Savage Companies.

In September, Petroleum News reported

The Port of Vancouver facility will have “a lot of flexibility and capability to take different types of crudes, from heavy Canadian crudes to crudes from the Mid-Continent… So we will source crude from where the best place is,” Goff said on Aug. 2. “The facility also was designed to supply the entire West Coast… We can go from as far away as Alaska to Southern California, in those refineries, which we intend to do.”

Reuters also reported

Regulators also are considering Valero’s permit request for a 60,000 bpd rail facility at its 78,000 bpd Wilmington refinery near Los Angeles, but in June the area pollution regulator said it would take 18 months to finish an environmental review, permitting and construction.
Alon Energy USA also is seeking permits for a rail facility at its Southern California refining system, which shut down late last year as losses mounted on high imported crude costs and low asphalt demand. The company hopes to get those permits by year-end.
Valero spokesman Bill Day on Friday declined to say whether Valero would be interested in tapping inland and Canadian crude through the Tesoro project, but noted that the company values flexibility in getting cheaper crudes to its refineries.

Asked today about the New York Times report, (at the time of his regular news conference, he hadn’t read the story) Skeena Bulkley Valley MP Nathan Cullen said, “I mean there’s been so much uncertainty, in large part created by this government with respect to moving oil anywhere. This is another proposal, it seems every week you wake up, open the papers and there’s another proposal. Some of them are legitimate, some of them are snake oil.

“This one I’m not familiar with, so I can’t make specific comments on it, I will certainly look at it because I’m very interested in energy on the west coast. I’d have to see, given the government we have in Ottawa right now, they’re not friends to communities and First Nations and certainly not friends to the oil sector because they keep causing so much concern within the broader public and hurt the companies’ ability to gain social licence to get a project going.”

KOGAS selling stake in Kitimat’s LNG Canada

Reuters is reporting that the Korean Gas Corp is selling part of its stake in the Shell-led LNG Canada project in Kitimat.

Reuters says KOGAS CEO Jang Seok-hyo told the World Energy Congress that the company is considering selling 5 to 10 per cent of its stake in the LNG Canada project. It currently holds 20 per cent.

The sale is apparently an effort to improve the company’s bottom line.  The South Korean government recently began a review of state-owned oil and gas investments with are suffering from poor profits.

Kogas, which is the world’s largest corporate buyer of LNG, is also considering selling part of its 15 per cent holding in the $18.5 billion Gladstone LNG (GLNG) project in Australia.

Check out Kitimat’s LNG competition

Screen grab American Petroleum Institute interactive map of LNG export projects. (API)
Screen grab American Petroleum Institute interactive map of LNG export projects. (API)

The American Petroleum Institute, the lobby group for US energy companies has launched an interactive map on its website covering liquefied natural gas export projects.

The API says the U.S. Department of Energy has approved only four applications for permits to export liquefied natural gas nations that don’t have a free trader agreement with the US, adding: “There are currently 21 pending applications, covering 18 discrete facilities where U.S. businesses are seeking to build and operate terminals to process LNG for sales abroad.”

API interactive LNG export map
(requires Flash, may be slow loading)

 

While the map does show proposed projects at Kitimat and Prince Rupert, the “interactivity” does not give details, while there is detailed information on the US projects including “anticipated capital investments, jobs, and export volumes associated with each U.S. site, as well an estimated value of potential exports.”

One of the Kitimat LNG projects plans to self-generate power for liquefaction plant

At least one of the two large liquified natural gas projects in Kitimat is, at least at this point, planning to self-generate the power required using a gas-fired, steam-driven electrical generation system.

A job ad posted this weekend by the headhunting firm Fircroft is seeking a Lead Project Engineer, Power Plant for “Our client, a major international owner/operating company, requires expertise for their LNG mega-project in Western Canada.”

The job, which requires 20 years and more experience, would be located in Calgary for eighteen months, then move to Kitimat for the remainder of a four year contract paying from $1650 to $1850 per day.

By Fircroft describing the job as a “mega-project” means that the client is either Shell’s LNG Canada project or the Chevron and Apache KM LNG project, since the much smaller BC LNG project could not be described as a “mega-project.”

As well as the standard qualifications for a senior engineer, the job posting lists:

• Power Plant design, operation and construction experience required.
• Boiler design, construction, operation, and commissioning experience required.
• Heat Recovery Steam Generation (HRSG) design, processes, construction, operation, and commissioning experience required.
• Integrates inherent safety in design and operability in concept selection and development for gas resource opportunities.

Providing the power for the Kitimat and other northwestern LNG projects is becoming controversial. The power is needed to cool the natural gas so it can be loaded onto tankers for shipment to customers.

The BC government recently announced a $650,000 study of the cumulative effect on air quality for the planned industrial expansion in the Kitimat area, including the Rio Tinto Alcan Kitimat modernization project, which would increase the amount of sulphur dioxide emissions, combined with as many as three LNG projects and the associated increase in tanker traffic, as well as the possible and even more controversial Enbridge Northern Gateway project.

At the time of the BC announcement, the Globe and Mail reported:

If natural gas is used either for direct-drive or combined-cycle electricity generation to produce the energy required for the proposed Shell LNG facility at Kitimat, approximately 300 million cubic feet of natural gas would be burned. The proposed Chevron Apache LNG facility could burn approximately 140 million cubic feet of natural gas.

The other alternative for powering the LNG plants is to use hydro-electricity, and BC Hydro at the moment doesn’t have the capacity to supply the LNG projects with power. One possibility is the controversial Site C dam project in the Peace River basin, which is also under review by the BC government. 

Although the job is restricted to Canadian citizens or permanent residents, it is clear that the engineer will have to also answer to the project’s overseas partners since one requirement is to conduct:  “Overseas VIP workshops, including Value Engineering, Process Simplification, Process Optimization and Design to Capacity.”