JANUARY 2017 • VOL.3,ISSUE 9
AltaGas
Greenlights Propane Project Open For Business
Grooming Workers
District of Kitimat puts the call out to large-scale industry
Pacific Timber manager recognized nationally
High-Tech Terrace
Veolia Goes Green
City hooked up to fibre optics thanks to Telus investment
Fort Green biomass energy plant nearly complete
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Publisher & Editor-in-Chief Todd Hamilton Prince Rupert Ed Evans, Sales Kevin Campbell, Reporter Shannon Lough, Reporter Terrace Rod Link, Editor Jackie Lieuwen, Reporter Bert Husband, Sales Erin Bowker, Sales Kitimat Louisa Genzale, Sales Devyn Ens, Editor Smithers Grant Harris, Sales Nick Briere, Sales Chris Gareau, Editor LaShaina Blair-White, Reporter Houston Mary-Anne Ruiter, Sales Burns Lake Laura Blackwell, Sales Flavio Nienow, Editor Fort St. James/ Vanderhoof Pam Berger, Sales Vivian Chui, Reporter Barbara Latkowski, Reporter Haida Gwaii Chris Williams, Sales N2K CONTACT INFO:
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here have been a few green lights lighting up northern B.C. for various large-scale projects by provincial and federal governments, but one stands out thanks to an early 2017 final investment decision. AltaGas’ Ridley Island Propane Export Terminal is the most immediate and the most shovel-ready project to proceed on the North Coast. As Shannon Lough reports, the $500-million terminal was given the go-ahead by its proponent on Jan. 3. The new year wasn’t even a week old yet. Two hundred to 250 construction jobs are expected to be created with approximately 40 permanent jobs to service the terminal long-term. It’s stories like this one that make northern B.C. businesses and residents giddy with anticipation for responsible, industrial development taking place all across the northwest. The waiting game didn’t even last a full year for the AltaGas project. In January 2016, the company announced its intentions to build the first-ever propane export terminal on Canada’s west coast, and nearly 12 months later, it announced its final investment decision. It’s refreshing news for those who feel like the waiting game is too much to bear for these multi-million dollar projects. But this terminal represents industry taking advantage of the province’s natural resources and getting them to market with a savvy location choice, and the ‘walk’ to back up the ‘talk.’ Other projects across the northwest have us here at N2K excited, like Telus’ plans to hook up Terrace-area businesses and homes with fibre optic cable to match Vancouver-level Internet speeds, as Rod Link outlines in this month’s issue. Vanderhoof ’s FreFlyt new nine-axle truck is another signal notifying the area the company is serious about hauling its timber across long distances. Vivian Chui brings you that story. As well, Barbara Latkowski tells us the Veolia Fort Green Energy Plant in Fort St. James is scheduled to be completed in the second quarter of 2017, with green, renewable and efficient energy being top of mind for the company. The Province of B.C. itself is anticipating major trade opportunities with southeast Asia, and the province is opening up a designated trade office in Johor Bahru early this year to capitalize on any energy market trade opportunities available for B.C. That could potentially have huge impacts on the northwest. And as Devyn Ens reports, the District of Kitimat is throwing open its doors for more large-scale development, attracting the attention of major players in major Canadian markets. It’s all in this month’s issue of N2K. Kevin Campbell N2K Reporter publisher@thenorthernview.com
Out-of-area subscriptions now available e-mail: circulation@thenorthernview.com View our e-version for free at: www.thenorthernview.com/eeditions
Volume 3 • Issue 9
POSITIVE F.I.D. AltaGas gives go-ahead to Ridley Island propane export terminal
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MALAYSIAN OFFICE OPENED Province of B.C. opens an office in Johor Bahru for anticipated trade opportunities 10
TOP 10 UNDER 40 DISTRICT’S AD CAMPAIGN Pacific Timber’s Karl Garrett wins Canadian DIstrict of Kitimat makes it known the area is Forest Industries prestigious award 7 open for responsible large-scale industry 8-9
FIBRE OPTIC CONNECTIONS NINE AXLES Terrace businesses and homes hooked up to FreFlyt’s new truck fibre optics thanks to Telus investment 11 enables efficiency 12
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AltaGas moving ahead with $500 million propane terminal By Shannon Lough
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fter receiving approval from federal regulators, AltaGas announced its Final Investment Decision (FID) for the Ridley Island Propane Export Terminal. Construction will begin early this year to build the $500-million propane terminal designed to ship 1.2-million tonnes of propane to Asian markets each year. The propane export terminal on Ridley Island, near Prince Rupert, will be the first on Canada’s west coast. The North Coast location gives the proponent a geographical advantage — shipments to Asia will take 10 days as opposed to the 25 days it takes to ship from the U.S. Gulf Coast. “Propane exports off of Canada’s west coast pulls together our vision of offering Canadian producers a complete energy value chain,” said David Harris, President and CEO of AltaGas in the press release. “Together with our northeast B.C. infrastructure, once the Ridley Export Terminal is built and operating, we will give producers new access to premium Asian markets for their propane.” In December, AltaGas also received regulatory approval to double the size of its natural gas processing Townsend Facility, north of Fort St. John. The Townsend Facility will feed into the
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North Pine propane facility, near Fort St. John, which will now feed into the Ridley Island Propane Export Terminal. A final multi-year agreement has also been signed between AltaGas and the Japan-based Astomos Energy Corporation to purchase 50 per cent of the 1.2-million tonnes of propane being exported from Ridley. The two companies had originally signed a memorandum of understanding on May 24, 2016. “Astomos is one of the largest LPG (liquefied petroleum gas) players in the world providing great access to Asian markets for Western Canadian producers,” said Harris. “We look forward to maximizing our relationship with them.” Environmental review began in early 2016 and by the end of the year, after all documentation was submitted, federal approval came from Transport Canada, the Port of Prince Rupert and Ridley Terminals Inc. Harris said the company has been collaborating closely with First Nations and communities in the area. “We look forward to a long and mutually beneficial relationship with the First Nations in the region.” The project is estimated to bring 200-250 construction jobs while it’s being built and there will be 40-50 permanent jobs once the terminal is in operation. -N2K-
GROOMING THE NEXT GEN By Flavio Nienow
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acific Timber - a company that operates under the umbrella of the Tahtsa Group - has been growing by utilizing, developing and valuing the local workforce. Karl Garrett, Pacific Timber’s manager, was recently recognized nationally for being at the forefront of these efforts. The Burns Lake resident has won the Canadian Forest Industries magazine’s ‘Top 10 under 40’ award, which acknowledges the achievements of the newest generation of forest industry workers. Many workers in the Burns Lake area have used Pacific Timber as a stepping stone to higher paying mills such as Decker Lake Forest Products or Babine Forest Products. But instead of working against that trend, Pacific Timber decided to use it as an opportunity. The company has been attracting workers by providing proper training and career development opportunities. “They come through us and they learn those skills; we recognize that, and we develop them as much as we can, knowing that sometimes we’re going to lose them,” explained co-worker Kevin Porowski, who nominated Garrett for the award. “If we help them grow, we grow, and Karl takes a leadership role on that.” Porowski said Garrett also understands the value of the local workforce and that he has been able to utilize the local First Nations labour pool - filling 45 per cent of Pacific Timber’s workforce, including positions of leadership. “He’s able to see the strength in the people that we have,” said Porowski. “Pacific Timber is investing in people and [therefore] in the community all the time.” Garrett was also recognized for his efforts to develop a safe work culture. “I watched Karl’s desire to grow the safety program and his concern about the safety for his people,” said Porowski.
Garrett, 39, immigrated to Burns Lake from Germany when he was 15 years old. He has been a manager at Pacific Timber for over five years. As a manager, he is responsible for two sawmill sites in Burns Lake and is actively involved in setting set up a third in Houston. “It was his hard work and his effort that propelled him to where he is; he’s dedicated on the job and he loves what he does,” added Porowski. According to the Canadian Forest Industries magazine, Garrett has worked closely with Tahtsa Group’s general manager to successfully procure and harvest burned wood from a forest fire and turn it into cants, while using the residual in the pellet plant industry. “Putting his marketing skills to good use, Karl has successfully introduced new products to the marketplace and built niche markets,” notes the magazine. “He actively works with brokers to achieve the best value for export wood.” When asked how he felt about winning the award, Garrett simply said it was nice to be appreciated. “But it’s definitely a team effort,” he said humbly. “I wouldn’t be here if it wasn’t for the guys in the office.
-N2K-
KITIMAT OPEN FOR BUSINESS
District of Kitimat puts the call out for industry in newspaper ads across major Canadian markets By Devyn Ens
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Strike while the iron is hot,” goes the old adage, and the District of Kitimat is doing just that. Fresh off of the federal government’s rejection of the Northern Gateway pipeline, which the community voted against in a 2014 plebiscite, the District of Kitimat and Mayor Phil Germuth have decided now is the time to remind Canada that the community is there, and welcomes development. “We’ve been really big on trying to promote value-added industry, and figured this was a good time to actually get that conversation going in light of the recent decision from the federal government,” said Germuth. In order to get that message out to the country, the District decided an open letter campaign in four major market newspapers would be the most effective. Full page ads featuring Germuth’s letter to Canada ran in the Vancouver Sun and Province, the Edmonton Journal and the
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Ottawa Citizen. The letter outlines the District’s position on valueadded industry, and makes the case for bringing that industry to Kitimat, where infrastructure is already in place to support it. Kitimat, as a municipality, exists because of development, as it was planned and built by Alcan (now Rio Tinto) in the 1950s. Industry has been a major employer of Kitimat residents since the beginning, with other larger industrial operations opening shop in the area after Alcan was established. “Kitimat has really been a value-added centre since our inception,” said Germuth. With the aluminum industry already established, he said there’s room for secondary manufacturing, such as car parts. He said the community would also welcome more developments like the former Methanex methanol plant and the Eurocan pulp and paper mill, which have now closed. “We’re actually very open to most anything value-added,” he said.
By reaching out to Vancouver, Edmonton and Ottawa, the District believes that people will recognize and learn what sets Kitimat apart from other Canadian industrial hubs. Being situated on the Douglas Channel reduces shipping times to overseas markets, and most people in town are open to major developments in the area, as long as all of the regulatory conditions are met to ensure that the pristine beauty of the area can be maintained. “We are a little bit different. We support industry, we support development, but of course we’re very conscious of our environment,” he said. “We have to be very cautious, to make sure that industry coming here is going to respect the natural environment.” Germuth said that feedback on the letter has been mostly positive so far. “It’s a no-brainer. If we can value-add and refine our resources
“We have to make sure that
industry coming here is going to respect the natural environment.”
- Phil Germuth here, we’re providing jobs for Canadians.” For the next stage of the awareness campaign, Germuth said the District is waiting on feedback from other municipalities in the region. “We’re hoping (the letter) starts a discussion,” he said. “Do we have to do a little more after that? We’ll see.” -N2K-
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Province of B.C. photo
B.C. OPENS MALAYSIAN OFFICE By Kevin Campbell The Province of B.C will be able to closely monitor how, if or when the investors behind the Pacific NorthWest LNG project on Lelu Island will make their final investment decision. A new trade office is scheduled to open up early this year in Johor Bahru, Malaysia by the province. The office is being labelled as a Trade and Investment Representative Office and its purpose is to develop and find trade opportunities in the Association of Southeast Asian Nations (ASEAN) economy. The opening of the office follows the visit by B.C. Finance Minister Michael de Jong to Johor Bahru in November, where he met with Sultan Ibrahim and the Johor State Cabinet. On the agenda for de Jong were opportunities related to the Pacific NorthWest LNG (PNW LNG) project, with majority owner Petronas based in Malaysia, aviation, aerospace and finance sectors. B.C. has already opened trade offices in Manila, Philippines and Indonesia and 10 more around the world in Japan, South Korea, India, China, Europe and the U.S. “British Columbia has a strong appreciation for Malaysia’s status as an economic powerhouse within the ASEAN region,” de Jong said in a statement. “A B.C. trade and investment representative office strategically located in Johor, a fast-growing region of Malaysia that also
happens to be situated adjacent to Singapore, a global commercial and financial hub, will play a key role in fostering those ties.” Premier Christy Clark visited Malaysia previously in 2014 to promote the province’s LNG industrial activity potential and in April 2015 Port Edward Mayor Dave MacDonald, Coun. Grant Moore and Chief Administrative Officer Bob Payette also visited the country at the invitation of Petronas, which gave the visitors a structured tour of an LNG facility, which impressed the delegation through its safety record and professionalism. “They didn’t need to try and butter us up,” Moore noted last year, adding that an agreement-in-principle had already been signed between the company and Port Edward over municipal property taxation. Minister of International Trade Teresa Wat added that “by having a trade presence in Indonesia and Malaysia, we are providing B.C. companies with access to on-the-ground experts who can help them succeed in both emerging markets.” An Indonesian office was opened in July. “Helping B.C. companies build relationships with key partners in the ASEAN will generate new business opportunities, increase exports and attract investment in key sectors, which helps create jobs at home in B.C.,” Wat said.
-N2K-
TERRACE GOES HIGH-TECH By Rod B R d Li Linkk
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nce heavily dependent upon forestry, Terrace has, in this decade, broadened its economic base by establishing itself as the northwest centre for services. Its geographic location has helped, being conveniently located between the more heavy-industrialized Kitimat and Prince Rupert with its rapidly developing port capacity. That services aspect has been strongly reinforced thanks to the Northwest Regional Airport being the largest in the region and now growing in size thanks to a multi-million dollar expansion underway. But now the local business community is viewing another opportunity, this one driven by the increasing growth of the Internet as a commercial reality. And that’s being brought to the city by Telus which is spending $17 million to run fibre optics to as many homes and businesses as possible. The expenditure is part of a system-wide Telus capital investment plan and Terrace is the only city in the northwest so far to be on its list. The prospect of creating a new underpinning to the local economic foundation through high-tech arose as a discussion point during a presentation in November of a business opinion survey undertaken by the MNP accounting and consultancy firm in conjunction with the Terrace chamber of commerce. “With fibre optics now in town we have a golden opportunity to retail [ourselves] to software companies,” said Rob Dykman of Coast Mountain Wireless Service during a panel discussion held as part of the survey results presentation. “We can now offer the same quality of service as they offer in Vancouver,” he noted of the Internet speed that comes from fibre optics. And it needn’t be firms with scores of employees either, Dykman noted in that attracting companies with smaller staffs can offer a diversified base compared to one large company. The region has amenities attractive and accessible to hightech companies and the cost of living, particularly housing, is
more affordable than the Lower Mainland. “Marketing is what this boils down to,” said Dykman of the potential draw to Terrace of companies because of fibre optics. “Large projects are not going to happen all the time. We need to look at diversification.” The fibre optics-driven pursuit of new companies to the area would do much to allay one of the key findings to come out of the MNP-chamber of commerce survey – uncertainty about local economic conditions. The opinion was expressed by 73 per cent of the 200 businesses spoken with in the survey. The lack of skilled labour was listed as the second largest challenge at 40.5 per cent, and coming close behind were transportation and shipping costs at 36.5 per cent. Government approvals and regulations, whether they be federal, provincial or local, ran third at just over 30 per cent while property taxes and the image of the community came in at under 30 per cent each. Although uncertainty ranked high, one-third of those surveyed indicated financial performance was about the same as 12 months ago with 29 per cent indicating it was better and 31.5 per cent saying performance had worsened. As for employment, just over half of those surveyed said they employed the same number of people as they did 12 months ago. The number of employees had dropped for 22.5 per cent of businesses and went up for 22 per cent. Nearly 46 per cent of those surveyed felt the business outlook would be the same a year from now, while 41.5 per cent thought it would be better and just 5.5 per cent thought it would be worse. 7.5 per cent either didn’t know or gave no response.
VANDERHOOF and DISTRICTS CO-OPERATIVE ASSOCIATION 15 Cardlock Locations: Fort St. James To Quesnel, Terrace To Valemount. Fuel Tanks Sales & Rentals, Bulk Fuel and Oil Deliveries: Vanderhoof Toll Free: 1-888-545-2667, Quesnel: 1-888-992-2667, Prince George: 1-866-309-2667 Houston: 1-800-848-6347, Terrace: 250-635-9595
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LONGER, GREENER, AND A ‘BIG GAIN’ By Vivian Chui
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ith forestry companies hauling increasingly long distances to timber damaged by mountain pine beetles, a Vanderhoof company is manufacturing a longer truck and trailer to increase productivity and cut costs. FreFlyt’s new nine-axle vehicle features a four-axle truck pulling a five-axle trailer — an axle more than the standard eight-axle b-train vehicles. A project of industry-government research and development group FPInnovations for the last two years, getting approval from the B.C. transportation ministry to use nine-axle trucks has been “a big gain,� said Doug Bennett, research manager for transportation and infrastructure at FPInnovations. Bennett said the additional payload for each trip translates to a saving of 14 to 15 per cent, or $3 to $4 per cubic metre of wood. If longer trucks were used across the province, the estimated savings to industry is about $30 million a year. Canfor’s Stephen Mackie said the larger loads also help the company deal with a shortage of truck drivers. Reduced greenhouse gas emissions are an other attraction, in an industry leading the way toward lower-carbon construction and biofuels. “For the nine-axle log truck it’s about an eight per cent reduction in GHGs,� Bennett said. “The chip van we’re working on is a 10-axle unit, and that’s got an 18 per cent reduction in GHGs.� The highcapacity chip van is designed to increase the load from 63,000 to 79,000 kg. Designed in consultation with local logging companies Canfor and Blue Valley Enterprises as well as the Ministry of Transportation and Infrastructure, the new outfit carries extra timber to cut down
the number of trucks on the road, which in turn helps with carbon emissions and truck driver shortage. Lower load height was also requested as a requirement to improve logging truck safety, said FreFlyt’s Jim Bowman. “Instead of carrying three bundles of wood and occasionally four, this truck is completely designed to carry four bundles of 16-foot wood, with bunks a foot wider — six inches on either side — that allow the load to come down lower and be less top heavy,� Bowman said. “They got the extra axle underneath for braking and also to carry the weight, and the extra load they’re carrying is only about two-thirds of what that axle is capable of doing.� First trial run took place at the end of 2015, and the test driver of the prototype unit found it braking better than his current loghauling truck, Bowman added. Further trials took place later in the year and in March at work season break-up. The first trucks are now hauling for Canfor’s Plateau sawmill in Vanderhoof, travelling on Highway 16 and Highway 27. Measuring 1.5 metres longer than the current trucks, the 27.5-metre nine-axler may only be noticed by the experienced eye on the road, and is found to be off-tracking — cutting corners during turns — less as well, Bowman added. Before the new vehicles can travel elsewhere in B.C., the ministry is ensuring that roads and bridges on logging truck routes are outfitted for heavier loads at a regular basis. Currently, the allowed region for the nine-axlers stretches north to Fort St. James, west to Prince George, and east to Fraser Lake. - With files from Tom Fletcher
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FORT GREEN NEARLY DONE By Barbara B B b Latkowski L tk ki
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he Veolia Fort Green Energy Plant is expecting completion of construction and turnover of the facility from Iberdrola to Veolia/Fengate in Q2 2017 according to Rick Peterson, plant manager at Veolia Fort Green Energy. Fengate Capital Management Ltd. and Veolia North America (The Partnership) remain fully committed to the completion of construction and operation of two biomass clean energy projects in Merritt and Fort St. James, British Columbia. Veolia is considered to be one of the leading providers of environmental solutions and are looking forward to a future in Fort St. James. The company’s mission is to resource the world in helping their customers address their environmental and sustainability challenges in energy, water and waste. “We are not a refinery and we are not a mine. We are a very simple plant,” Peterson said, adding he has been busy addressing various questions about the biomass operation in Fort St. James and surrounding areas. How long until completion? What are the environmental impacts? What job opportunities will be made available locally? Construction of the plants has supported more than 500 jobs at peak in the two communities. More than 20 full-time staff were hired in Merritt and Fort St. James to operate the plants. The priority is to hire local as much as possible, he said. Once operational, each facility will generate more than 285,000 MWh of clean, renewable electricity, enough to power more than 40,000 homes for a year. And, the plants will use state-
of-the-art emissions reduction equipment. The Fort St. James facility will operate 24/7 and consume 200,000 metric tonnes of biomass per year by converting sawmill and logging waste from the B.C. forestry industry and trees killed by the mountain pine beetle epidemic. Iberdrola is the main contractor of the facility. And the plant also has a sister facility in Merritt, B.C. Each facility has been designed with a power supply agreement with BC Hydro of 30 years. The biomass is burned in a high efficiency boiler that ensures that biomass is burned as completely and as efficiently as possible and all dust is controlled in the plant. “We too are concerned about the environment. We are not allowed to make smoke,” Peterson said. “What’s being discharged into the air from the stack is carbon dioxide, nitrogen oxides and water vapour.” “The wood is not carcinogenic. It’s just wood,” he said. Veolia uses green and recyclable products only. The ash is considered to be a good natural fertilizer and Peterson hopes that this can eventually be utilized by local farmers. Something new is the implementation of a chipping plant, according to Peterson. “We are really focused on finding the best value for this fibre,” Peterson said. Contract and support potentials are available and Veolia also intends to set up apprenticeship programs with local colleges, and work with schools to set up power engineering programs.
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ADVANCING CONSTRUCTION OF THE HIGH-GRADE GOLD BRUCEJACK PROJECT IN NORTHERN BC
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