LNG

Canadian Spirit Resources Inc., which recently reactivated natural gas production at Farrell Creek in Northeast British Columbia, is aiming for a share in supplying feed gas to regional LNG export projects as it outlined the advantages and challenges of operating in the Montney Shale basin.

The Premier of the Canadian oil and gas province of Alberta said the provincial government aimed to invoke the sovereignty act to reject Federal clean energy regulations aimed at Alberta’s gas-fired power plants.

Kitamaat Technical Services Group (KTSG), a joint venture including the native North American Haisla First Nation and the resources of three leading industrial service companies, will be seeking to secure contracts and work in LNG projects in the western Canadian province of British Columbia.

KTSG was established by ServcoCanada, Novus Technical Services (Novus) and Well Services Group (WSG) to bring their combined expertise to emerging LNG projects in BC.

“A central tenet of KTSG is to work closely with the Kitimat community and in particular the Haisla Nation, who have occupied lands centred around Kitamaat Village for more than 9,000 years,” said KTSG.

KTSG said it was already supporting the Haisla Nation’s economic infrastructure by providing training for potential LNG supply chain jobs and would assist start-up businesses directly related to services required for contracts secured by the partnership.

Various projects

There are currently at least four LNG export projects under development in BC including LNG Canada led by Shell and the Cedar FLNG project pairing the Haisla First Nation with Calgary, Alberta-based Pembina Pipeline for the Douglas Channel project.

The Nisga’a people are behind a third project, the Ksi Lisims venture near Prince Rupert in BC in partnership with Rockies LNG Ltd and Western LNG LLC.

“The aim is to be the leading energy services organisation in BC with strong international LNG experience, supported by a balance sheet allowing major contracting opportunities to be undertaken which directly benefit the economy of North-Western British Columbia, local First Nations and the wider community,” KTSG explained.

The KTSG contracts and work venture will benefit from the experience of companies like ServcoCanada, already a well-established Kitimat-based business with a 30-year pedigree of providing electrical and instrumentation, mechanical, piping and structural and facility shutdown and maintenance services across Canada and the US.

Infrastructure

Novus is an international provider to the energy and infrastructure sectors which employs more than 10,000 staff in Canada, US, Europe, Middle East, the Caspian and China working on behalf of some of the world’s largest operators.

WSG is a process, pipeline and industrial services specialist and the leading provider of UK and European refinery and LNG terminal services with extensive experience in the Australian LNG market.

KTSG said it was actively bidding for a range of pre-commissioning, commissioning and operations and maintenance contracts on the LNG Canada project under construction at Kitimat and which when completed will export an estimated 14 million tonnes of LNG per annum.

“The LNGC project will transform Canada’s energy producing capabilities and be a major contributor to the local and national economy,” said John Gordon, a spokesman for KTSG and President and Chief Executive of ServcoCanada.

“We believe the combined resources, expertise and successful track records of KTSG’s three partner companies can play an important role in the success of this ambitious development,” explained Gordon.

“From the outset we understood the importance of working with the Haisla Nation, and that creating employment opportunities and supporting indigenous entrepreneurs who could play a role in the supply chain, was just as important as any financial benefits which may accrue,” he stated.

“We are delighted that the Haisla Nation are partners and shareholders in KTSG and we look forward to learning from their vast local knowledge and working together to create sustainable long-term opportunities for their people,” Gordon added.

A fourth LNG plant is being built further south in BC called the Woodfibre project and run by Asia’s Pacific Energy Corp.

The Woodfibre facility is being constructed about seven kilometres from the town of Squamish and 70km north of Vancouver on the brownfield site of a former mill.

This project is giving hiring priority to qualified Squamish First Nation members first, then Squamish residents followed by people from the rest of BC and Canada.

Pembina Pipeline Corp., the developer of the Cedar floating LNG project in British Columbia along with the Haisla First Nation, has announced that President and Chief Executive Mick Dilger had stepped down.

A new North American LNG company said it was proposing to build a $12 billion LNG export plant in Southeast Alaskan waters near the Canadian port of Prince Rupert in British Columbia. 

LNG Canada, the export project led by Royal Dutch Shell and four Asian partners and proposed for the town of Kitimat, has been granted a small production volumes change by the British Columbia Environmental Assessment Office.

TC Energy of Canada, one of the major natural gas pipelines owners and operators in North America, said it had agreed to sell its gas-fired power plants in the province of Ontario for around C$2.87 billion (US$2.18Bln) to raise cash for projects to deliver feed-gas to LNG plants under development.

TC Energy said it was selling two natural gas-fired power plants and a 50 percent stake in a third facility to Ontario Power Generation Inc.

The sale includes the 900-megawatt Napanee generating station, the 683-MW Halton Hills plant and half of the 550-MW Portlands Energy Centre in Toronto.

TC Energy said the it would be using the funds to pay for “near-term” capital projects.

These include the construction of the Coastal GasLink Pipeline, connecting gas production in the Montney shale basin of northeast British Columbia with the US$40Bln LNG Canada project, led by Royal Dutch Shell, in the town of Kitimat.

TC Energy is selling a total of C$6.3Bln of assets in 2019 and using the cash to fund its growth programme and “further strengthen its financial position.” The company had C$35.8Bln in long-term debt at the end of the first quarter.

“The sale of these facilities is part of our ongoing efforts to maximize value for our shareholders and fund our industry-leading secured growth program in a disciplined manner,” said Russ Girling, TC Energy President and Chief Executive.

“We continue to be a significant private sector power generator in Canada and are committed to the ongoing multi-billion-dollar life-extension program at the Bruce Power nuclear facility in Ontario,” he added.

“In addition, we remain interested in new low-risk investment opportunities in the electricity sector within our core North American markets,” stated Girling.

TC Energy agreed earlier in July to sell US shale basin midstream assets held by its subsidiary Columbia Midstream Group for US$1.27 billion to UGI Energy Services of the US.

TC Energy, which recently changed its name from TransCanada Corp., said the transaction was expected to close in the third quarter.

Columbia Midstream, which operates in the Appalachian Basin, owns four natural gas gathering systems and an interest in a company with gathering, processing and liquids assets.

However, TC Energy emphasized it would continue to own and operate its significant network of interstate pipelines in the Appalachia with its Columbia Gas Transmission system, which transports low-cost natural gas supplies from the shale production region to markets in the US, including LNG export facilities.

“Looking forward, we expect our strong operating and financial performance to continue as we are well positioned to fund our C$30Bln secured capital program, stated Girling.

FortisBC, the Canadian utility in the province of British Columbia, said it entered into its first supply agreement to produce liquefied natural gas from its small-scale plant near Vancouver to export to China.

The Asian-based developer of the Canadian Woodfibre LNG export project in British Columbia has received provincial authorization to continue clearing the brownfield site near the town of Squamish that was previously a pulp mill.

A liquefied natural gas jetty expansion project at the existing Tilbury Island plant of utility FortisBC in the Canadian province of British Columbia is advancing and is expected to lead to small-scale exports to Asia and a West Coast LNG fuel hub for shipping.