rt_0891
October 15th, 2005, 08:39 PM
$4-billion pipeline to land in Kitimat
GATEWAY I Enbridge project means thousands of jobs for northwest B.C.
Scott Simpson
Vancouver Sun; With files from Leanne Ritchie, Prince Rupert Daily News
Saturday, October 15, 2005
The final decision on a Pacific terminal for Enbridge's $4-billion Gateway pipeline project came down to money, with Kitimat announced Friday as the Calgary company's preferred location. To listen to story, click link: here.
The sprawling pipeline project, slated to span some 1,200 kilometres from Edmonton to the Pacific Ocean, is expected to create a mini-job boom and economic spinoffs worth about $1.5 billion for the B.C. economy.
A route to Prince Rupert would have cost at least $500 million more than Kitimat, although an Enbridge spokesman said communities across northern British Columbia will benefit from the project.
The company expects unspecified "thousands" of jobs during a two-year construction phase and about 75 permanent jobs including about 35 at the terminal in Kitimat.
Gateway Pipeline Inc. president Art Meyer said economic spinoffs will include materials purchases, construction jobs and indirect employment.
The company hopes to gain all regulatory approvals by 2007 and have the pipeline operational by 2010.
"Certainly this is great news for Kitimat, and Terrace, and the region," said Kitimat Mayor Richard Wozney, who was in Terrace for the announcement.
"We welcome this industrial investment. I think it will be a great addition to our community and to our private port operation in Kitimat.
"This will add to our reputation as being somewhat of an energy hub and a petrochemical centre. We hope they will get through all of their regulatory approvals, start construction in 2008 and be in operation in 2010."
Gateway involves twin pipelines between Kitimat and Edmonton -- a condensate line taking oil-thinning materials east from a terminal in Kitimat to oil processing facilities in Alberta, and a larger petroleum line carrying crude oil to the West Coast.
The project must still address regulatory and market hurdles -- including signing up enough pipeline customers to make the lines economic.
Meyer noted during a teleconference with reporters that the proposed condensate line already has strong support from shippers.
Later this month Enbridge will embark on an "open season" for expressions of interest from shippers for the petroleum line -- which passed a major milestone earlier this year when PetroChina signed a memorandum of understanding for half its capacity.
"We have decided on Kitimat as the end point for the pipeline. That's really been based on economic criteria, as well as the deep water port and industrial land that's available in the area. But the primary factor was economic and a business case determined Kitimat was the most appropriate choice," Meyer said.
"With that said, we certainly do see this project being an economic benefit to the entire region and we've been pleased to work with all communities in the region to pursue that.
"We are looking forward to working hard over the next while to make this vision a reality, both through the phase in which we will be confirming commercial certainty, then through the regulatory approval process, and finally into construction."
Meyer said the pipeline route to Prince Rupert was longer, but it would have meant a shorter travel time for tankers plying the route from a B.C. terminal to potential markets in California and Asia.
The cost of scaling towering mountains, savage slopes and razor-edged cliffs along the Skeena Valley led company officials to abandon the Prince Rupert plan.
"When we examined the economics we saw that the Prince Rupert portion would have cost in excess of $500 million in large part due to some of the terrain challenges along that route. We certainly could have overcome those but that additional cost when weighed against the transit of vessels up the Douglas Channel resulted in Kitimat really being the most appropriate location."
Prince Rupert Mayor Herb Pond said that while the city council had hoped Rupert would be the site for the project, however, all northwest communities stand to benefit from the project.
"I think it's a great day for northwest ports," he said.
"Kitimat, Stewart and Prince Rupert, we all have great things to offer."
"There will be work for the people of Prince Rupert and the northwest during construction, so bring it on," he said.
© The Vancouver Sun 2005
*****************************************************
Market demand driving industry support
Scott Simpson
Vancouver Sun
Saturday, October 15, 2005
Calgary-based Enbridge Inc. is optimistic that its $4-billion Gateway oil pipeline project can clear several remaining economic and regulatory hurdles.
After announcing on Friday in Terrace that the western terminus for twin 1,200-kilometre pipelines will be Kitimat, Gateway Pipeline president Art Meyer noted that Enbridge must sign up enough participants for its petroleum line.
"We are looking forward to working hard over the next while to make this vision a reality, both through the phase in which we will be confirming commercial certainty, then through the regulatory approval process, and finally into construction," Meyer said.
Enbridge will begin next week to seek declarations of interest from shippers who want to move petroleum through the line, which has the capacity to move 400,000 barrels per day. PetroChina has indicated it wants half that volume.
Shippers' response to a recent "open season" on an accompanying condensate line was so strong that the company opted to increase the size of that line by 25 per cent.
Participants on Enbridge's existing pipelines include major producers, marketing groups that buy and sell oil, and end-point buyers -- Meyer thinks the new line could attract the same mix.
"It needs to be market pull, obviously, and we've seen indications of that through the PetroChina memorandum of understanding. I think we also have seen a large interest in the potential for energy supplies from some of those market areas on the Pacific Rim," Meyer told reporters in a teleconference.
"We really see the market demand driving industry support and it will be up to industry to determine if that demand is sufficient to enter into long-term contracts."
Once petroleum line supporters have identified themselves, Enbridge will enter into final commercial arrangements.
The company is also staging open-house presentations in communities along the line, which runs east-west between Kitimat and Edmonton.
As well, Meyer said, the Gateway team has been in consultation with first nations along the line since 2002.
Meyer expects regulators who examine the project will include the National Energy Board and the Canadian Environmental Assessment Authority, who have historically reviewed such applications through a joint panel.
The company expects to file a regulatory application in the second quarter of 2006, and file supplemental information in support of that application over the remainder of the year.
Meyer anticipates public hearings along the proposed route in 2007 and said the company will be "looking for" a regulatory decision in favor of the project by the end of that year.
Construction would begin in 2008, with the first material running through the lines by 2010.
Enbridge is also facing several rivals although its project is the most advanced.
Terasen Pipelines has indicated an interest in running an oil pipeline from Alberta to the B.C. coast, and there are proposals from Trans-Canada and Altex to build continental lines from Alberta to the southern U.S.
Enbridge and its rivals are all focused on moving anticipated higher volumes of petroleum from the Alberta oil sands.
ssimpson@png.canwest.com
© The Vancouver Sun 2005
GATEWAY I Enbridge project means thousands of jobs for northwest B.C.
Scott Simpson
Vancouver Sun; With files from Leanne Ritchie, Prince Rupert Daily News
Saturday, October 15, 2005
The final decision on a Pacific terminal for Enbridge's $4-billion Gateway pipeline project came down to money, with Kitimat announced Friday as the Calgary company's preferred location. To listen to story, click link: here.
The sprawling pipeline project, slated to span some 1,200 kilometres from Edmonton to the Pacific Ocean, is expected to create a mini-job boom and economic spinoffs worth about $1.5 billion for the B.C. economy.
A route to Prince Rupert would have cost at least $500 million more than Kitimat, although an Enbridge spokesman said communities across northern British Columbia will benefit from the project.
The company expects unspecified "thousands" of jobs during a two-year construction phase and about 75 permanent jobs including about 35 at the terminal in Kitimat.
Gateway Pipeline Inc. president Art Meyer said economic spinoffs will include materials purchases, construction jobs and indirect employment.
The company hopes to gain all regulatory approvals by 2007 and have the pipeline operational by 2010.
"Certainly this is great news for Kitimat, and Terrace, and the region," said Kitimat Mayor Richard Wozney, who was in Terrace for the announcement.
"We welcome this industrial investment. I think it will be a great addition to our community and to our private port operation in Kitimat.
"This will add to our reputation as being somewhat of an energy hub and a petrochemical centre. We hope they will get through all of their regulatory approvals, start construction in 2008 and be in operation in 2010."
Gateway involves twin pipelines between Kitimat and Edmonton -- a condensate line taking oil-thinning materials east from a terminal in Kitimat to oil processing facilities in Alberta, and a larger petroleum line carrying crude oil to the West Coast.
The project must still address regulatory and market hurdles -- including signing up enough pipeline customers to make the lines economic.
Meyer noted during a teleconference with reporters that the proposed condensate line already has strong support from shippers.
Later this month Enbridge will embark on an "open season" for expressions of interest from shippers for the petroleum line -- which passed a major milestone earlier this year when PetroChina signed a memorandum of understanding for half its capacity.
"We have decided on Kitimat as the end point for the pipeline. That's really been based on economic criteria, as well as the deep water port and industrial land that's available in the area. But the primary factor was economic and a business case determined Kitimat was the most appropriate choice," Meyer said.
"With that said, we certainly do see this project being an economic benefit to the entire region and we've been pleased to work with all communities in the region to pursue that.
"We are looking forward to working hard over the next while to make this vision a reality, both through the phase in which we will be confirming commercial certainty, then through the regulatory approval process, and finally into construction."
Meyer said the pipeline route to Prince Rupert was longer, but it would have meant a shorter travel time for tankers plying the route from a B.C. terminal to potential markets in California and Asia.
The cost of scaling towering mountains, savage slopes and razor-edged cliffs along the Skeena Valley led company officials to abandon the Prince Rupert plan.
"When we examined the economics we saw that the Prince Rupert portion would have cost in excess of $500 million in large part due to some of the terrain challenges along that route. We certainly could have overcome those but that additional cost when weighed against the transit of vessels up the Douglas Channel resulted in Kitimat really being the most appropriate location."
Prince Rupert Mayor Herb Pond said that while the city council had hoped Rupert would be the site for the project, however, all northwest communities stand to benefit from the project.
"I think it's a great day for northwest ports," he said.
"Kitimat, Stewart and Prince Rupert, we all have great things to offer."
"There will be work for the people of Prince Rupert and the northwest during construction, so bring it on," he said.
© The Vancouver Sun 2005
*****************************************************
Market demand driving industry support
Scott Simpson
Vancouver Sun
Saturday, October 15, 2005
Calgary-based Enbridge Inc. is optimistic that its $4-billion Gateway oil pipeline project can clear several remaining economic and regulatory hurdles.
After announcing on Friday in Terrace that the western terminus for twin 1,200-kilometre pipelines will be Kitimat, Gateway Pipeline president Art Meyer noted that Enbridge must sign up enough participants for its petroleum line.
"We are looking forward to working hard over the next while to make this vision a reality, both through the phase in which we will be confirming commercial certainty, then through the regulatory approval process, and finally into construction," Meyer said.
Enbridge will begin next week to seek declarations of interest from shippers who want to move petroleum through the line, which has the capacity to move 400,000 barrels per day. PetroChina has indicated it wants half that volume.
Shippers' response to a recent "open season" on an accompanying condensate line was so strong that the company opted to increase the size of that line by 25 per cent.
Participants on Enbridge's existing pipelines include major producers, marketing groups that buy and sell oil, and end-point buyers -- Meyer thinks the new line could attract the same mix.
"It needs to be market pull, obviously, and we've seen indications of that through the PetroChina memorandum of understanding. I think we also have seen a large interest in the potential for energy supplies from some of those market areas on the Pacific Rim," Meyer told reporters in a teleconference.
"We really see the market demand driving industry support and it will be up to industry to determine if that demand is sufficient to enter into long-term contracts."
Once petroleum line supporters have identified themselves, Enbridge will enter into final commercial arrangements.
The company is also staging open-house presentations in communities along the line, which runs east-west between Kitimat and Edmonton.
As well, Meyer said, the Gateway team has been in consultation with first nations along the line since 2002.
Meyer expects regulators who examine the project will include the National Energy Board and the Canadian Environmental Assessment Authority, who have historically reviewed such applications through a joint panel.
The company expects to file a regulatory application in the second quarter of 2006, and file supplemental information in support of that application over the remainder of the year.
Meyer anticipates public hearings along the proposed route in 2007 and said the company will be "looking for" a regulatory decision in favor of the project by the end of that year.
Construction would begin in 2008, with the first material running through the lines by 2010.
Enbridge is also facing several rivals although its project is the most advanced.
Terasen Pipelines has indicated an interest in running an oil pipeline from Alberta to the B.C. coast, and there are proposals from Trans-Canada and Altex to build continental lines from Alberta to the southern U.S.
Enbridge and its rivals are all focused on moving anticipated higher volumes of petroleum from the Alberta oil sands.
ssimpson@png.canwest.com
© The Vancouver Sun 2005