Blue Horizon obtains injunction to stop Methanex equipment leaving Kitimat site

Old Methanex site, Kitimat BC
A truck enters the old Methanex site, now being dismantled, on the snowy afternoon of January 13, 2012. (Robin Rowland/Northwest Coast Energy News)

Blue Horizon, the company that had  and lost the contract to  dismantle the old Methanex site in Kitimat has obtained an injunction preventing the buyer of the equipment from removing the material from the site by the Kitimat River.

Last November, Ko Yo Development of Hong Kong cancelled its contract with Blue Horizon that would have seen the equipment in the plant dismantled and shipped to China.

Part of the old Methanex site is now operated by Cenovus and is used to ship condensate to the Alberta bitumen sands by rail.

Shell purchased the Methanex site and marine terminal in October, 2011, as part of its plans for a liquified natural gas facility at Kitimat.  At the time of the contract cancellation in November, Shell spokesman Stephen Doolan told Northwest Coast Energy News  “The transaction … does not affect Shell’s purchase of the Cenovus property, nor is Shell involved in any way.” On Friday, Doolan said he had nothing more to add to the original statement.

A news release issued by Blue Horizon says:

Blue Horizon Industries Inc. (“Blue Horizon” or the “Corporation”) (CNSX:BH) announces that its wholly owned subsidiary Blue Horizon Energy Inc. (“BH Energy”), on behalf of its wholly owned division Blue Horizon Contracting, obtained on January 12, 2012 an injunction in the Supreme Court of British Columbia, Vancouver Registry, prohibiting Ko Yo Development Co. Ltd., a Hong Kong incorporated company (“KoYo”) and Guangan Lotusan Natural Gas Chemicals Co. Ltd., a corporation incorporated under the laws of the Peoples Republic of China (“GLN”) from removing any portion of the dismantled ammonia or methanol plants from the Province of British Columbia unless and until KoYo / GLN posts security in court in the amount of $4,180,000 by way of an irrevocable letter of credit or other security acceptable to BH Energy and to the Court.

Mr. Don Allan, President and CEO of Blue Horizon, stated “We are pleased that the Supreme Court of British Columbia ruled quickly and decisively in this matter by issuing the injunction against KoYo / GLN while at the same time awarding significant security for costs and court costs to BH Energy. We are continuing to focus our attention on completing the bid process for a number of new high value dismantling contracts expected to be awarded for execution in 2012 as well as advancing our other operating businesses.”


The dispute between Blue Horizon, the Red Deer  based contractor  and Hong Kong based Ko Yo goes back months.   The original contract was awarded in February, 2011, renegotiated in September 2011 and then cancelled in November, 2011.

Bula sign on Methanex site
On the Methanex Project sign at the entrance to the decomissioning site, stencils from, the new contractor, can be seen overwriting Blue Horizon, the former contractor. (Robin Rowland/Northwest Coast Energy News)

The dismantling of the Methanex plant has since resumed with work being handled by a new contractor, Bula Enterprises, also of Red Deer.  A profile of Bula Enterprises on the website shows that  it has extensive construction experience, much of it in the Alberta   oil patch, including projects for Shell Albian, CNRL, Suncor, Conoco Phillips in Fort McMurray. As of late Friday afternoon, Bula had not returned calls seeking comment on how the injunction might affect the deocommissioning.

Ko Yo Chemical (Group) Limited, formerly Ko Yo Ecological Agrotech (Group) Limited, is a Hong Kong based investment holding company. According to a company profile it is engaged in the research and development, manufacture, marketing and distribution of chemical products, chemical fertilizers and bulk blending fertilizers and has a natural gas energy utilization project at Dazhou City, Sichuan Province, China. The company has a number of subsidiaries with similar names.


PetroChina likely to join Kitimat project, Shell CFO tells Bloomberg


Eduard Gismatullin, a London-based reporter for Bloomberg News reports in Shell, PetroChina May Ship Canadian LNG to Gain From Asia Prices that:

Royal Dutch Shell Plc, Europe’s largest oil company, together with PetroChina Co. and Japanese and South Korean partners are examining plans to ship liquefied natural gas from Canada’s west coast to Asia.

“This gives us a chance to arbitrage the price differential between $4 gas in North America and with what in the last quarter was around $15 gas prices in Asia,” said Shell Chief Financial Officer Simon Henry. ‘It’s highly likely” that PetroChina will be a partner in the project following collaborations with Shell in Australia and China.

Shell considering giant floating LNG platform off BC Coast: Alberta Oil

Energy LNG  Link

Alberta Oil is reporting that Shell’s plans for a liquified natural gas export facility somewhere on the northern British Columbia coast will likely be a giant floating platform, similar to the platform planned for the coast of Western Australia.

Shell Canada sizes up LNG options offshore B.C.

Although costs, production volumes and timelines haven’t been worked out, industry observers like FirstEnergy Capital are speculating that Shell and its partners are considering building a floating LNG structure off B.C.’s coast. The Anglo-Dutch super-major knows a thing or two about floating LNG projects. In May, Shell received approval from the Australian government for its Prelude floating LNG project. Scheduled to start production in 2016, the Prelude structure will be located in the Browse basin off the coast of Western Australia

The length of the floating prelude platform, at  488 metres according to a diagram released by Shell and reprinted by Alberta Oil, would be longer than the height of the 446.5 metre Skypod/ Space Deck on the CN Tower and longer than the hieght of Kuala Lumpur’s Petronas Tower at 452 metres.  (The proportions in the Shell diagram of the CN Tower are not entirely accurate when compared to the information in the Wikipedia entry on the CN Tower)
518-tall_lng-thumb-500x454-517.jpg As reported in April by Alberta Oil Kitimat LNG faces Australian rivals the Western Australian development could rival Kitimat, a point that took up a lot of testimony at the June National Energy Board hearings into KM LNG’s application for an export licence.

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