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special report: ottawa steps up pipeline safety in three key areas JUNE & JULY 2014





the center of lng Art Jarvis, executive director south for Energy Services BC, was a key organizer of the fourth FSJ Energy Expo that brought together contractors and producers.

matt lamers photo

Brace yourself, Fort St. John, you ain’t seen nothing yet. Natural gas guru Bill Gwozd says: “This is where the gas is going to start from. Production is going to grow, transportation is going to grow. You’re going to need more people. You’re going to need more of everything. This is a new way of life. This is the beginning.”






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The following figures were taken from the stories in this issue of Pipeline News North.

4: British Columbia’s biggest liquefied natural gas proponents have formed an alliance to offer clearer communication to the public on topics of common importance. Story on Page 10 9: The number of pipelines that have been proposed to transport oil and gas in British Columbia. Together they total some 6,225 kilometres. Story on Page 13 1,244: The number of people that will be stationed at a work camp in northeastern B.C. to be constructed by Black Diamond Group. Story on Page 13 1995: The last year that natural gas exports to the United States were as low as they are today. Story on Page 14

2007: The base year for the province’s pledge to reduce emissions to a third by 2020. Story on Page 16 $1.6 billion: The amount of money available for offshore oil spill cleanup under new rules proposed by Ottawa last month. Story on Page 22 400 billion: The amount that the government will increase the possible payout to spill from the Canadian Ship-source Oil Pollution Fund due to an oil spill. Story on Page 22 $11.37: The value of the so-called Alberta-B.C. Natural Gas Discount (ABCD) in May. The ABCD is the difference in price that a British Thermal Unit of natural gas costs in Tokyo compared to Alberta. Chart on Page 27

$1 billion: The liability a pipeline company will be on the hook for if there is an oil spill. If the company is at fault, the amount is unlimited. Story on Page 22 150: The estimated number of LNG vessels operating off the coast by 2025 that would create new demand equal to 8.5 per cent of B.C.’s 2012 natural gas consumption. Story on Page 26 $4.49: The AECO “C” spot price per million Btu, the Alberta gas trading price, one of North America’s leading price-setting benchmarks. Chart on Page 27 $15.23: The price per million Btu that it costs Japan to import LNG in the first week of May. Chart on Page 27


matt lamers photo

Long-term LNG 5 export approvals

25 Can natural gas save B.C. Ferries? 26 5 factors determine LNG competitiveness

9th pipeline 5 planned for B.C.

26 Hitachi opens Van City office

High North starts 6 Montney drilling


1,244 person camp 6 ready by 2015

Why opening energy markets is paramount Details emerge on clean LNG The Environmental Stewardship Initiative U.N. confirms what we already knew

24 LNG Canada chooses main contractor


26 Alberta-B.C. LNG discount 27 Alberta natural gas price


27 Japan natural gas price


27 U.S. natural gas prices matt lamers photo


Ace in 15 the hand Depression and 18 the workplace Look for the 21 hashtag #LNGinBC


27 Natural gas land auctions in B.C. 28 Par for the course Look for PNN on Facebook /pipelinenewsnorth Look for PNN on Twitter @PipelineNN



Energy giants 5 form alliance on LNG

23 3 major pipeline safety initiatives



The center 5 of LNG

pnn 26

22 This is what an LNG boot camp looks like



The Pipeline 3 numbers

Published monthly by Glacier Ventures International Corp. Pipeline News North is politically independent and a member of the B.C. Press Council. The Pipeline News North retains sole copyright of advertising, news stories and photography produced by staff. Reproduction is prohibited without written consent of the editor.



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Art Jarvis, executive director south for Energy Services BC, was a key organizer of the fourth FSJ Energy Expo. It brought together local

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Staff Writer

Brace yourself, Fort St. John, you ain’t seen nothing yet. Bill Gwozd, vice president of Gas Services for Ziff Energy, was on hand at yesterday’s FSJ Energy Expo, where he delivered a message of optimism to British Columbia’s so-called “energy capital.” In an interview, Gwozd said the natural gas market is set for unprecedented growth, and what we’ve experienced so far is just the start. “Fort St. John is the centre of it all,” he said. “This is where the gas is going to start

from. Production is going to grow, transportation is going to grow. You’re going to need more people. You’re going to need more of everything.” The numbers support his claims. Currently there are 15 projects in various stages of development, two of which would transport natural gas produced in British Columbia and Alberta to Oregon, where it would be liquefied and shipped. The other 13 would be based on B.C.’s coast. Once the projects get off the ground, “this is a new way of life” for Fort St. John, Gwozd added. “This is the

beginning.” No final investment decisions have been announced, however Gwozd suggested they’re holding back from making formal announcements as long as possible to maintain a competitive advantage for themselves. “The FIDs for many of these companies has already been committed,” he said. “They have already committed themselves. They just haven’t announced anything. They don’t have to announce it. There is no urgency on their part to go public.” Speaking at the FSJ Energy Expo, Gwozd said the



Fort St. John

Fort St. John Petroleum Association

enter of LNG’ ‘Fort St. John is the center of it all. This is where the gas is going to start from. Production is going to grow, transportation is going to grow. You’re going to need more people. service providers and producers from out of town, as well as

You’re going to need

special guests BC MLA Pat Pimm and MP Bob Zimmer.

more of everything.’

conference provided an ideal setting for producers to form relationships with service providers. “Bond now. There’s a lot of knowledge to be gained here,” he said. The expo took place on Wednesday and Thursday, bringing together local service providers with producers from out of town. Gwozd gave the keynote speech on the opening evening of the expo, while B.C. Liberal Member of the Legislative Assembly Pat Pimm and Bob Zimmer, Member of Parliament for Prince GeorgePeace River in Ottawa, together addressed the attendees on Thursday morning. There were also workshops and

seminars. Art Jarvis, executive director south for Energy Services BC, said the objective of the conference was to provide a setting for the service sector to communicate directly with the big producers. “The people who run the businesses in town can have the opportunity to talk to the people who make the big decisions,” he said. “It’s really important to get that face-to-face experience. That’s definitely the objective.” Jarvis said another benefit to the conference is that it gives industry an opportunity to communicate with prospective employ-

ees, particularly expected college graduates. “I hope people leave with a new connection to potential business,” he added. “That’s a benefit on both sides. The producers get to see some of the service owners and managers, who will be doing their work.” It was the fourth time the expo has been held. Joel Lenz, a student at Northern Lights College, was on hand to look for opportunities in the industry. The long-time resident of Fort St. John is a fourth class power engineering and gas process operations student and will graduate at the end of June.

“It’s a real eye-opener to how many fields there are that feed into oil and gas, how they all relate to each other,” he said. Lenz is excited about working in the energy industry. “It’s a broad industry and it’s interesting to see how all these players fit into the overall puzzle,” he said. “You have environmental companies here across from drilling companies. They have a working relationship. “It’s interesting. At the end of the day everyone wants the same thing.” For St. John is going to need more graduates like Lenz. See FORT ST JOHN on Page 25



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Four of B.C.’s biggest energy proponents have formed an alliance to offer clearer communication to the public on topics of common importance, its interim chair told PNN in an exclusive interview. MATT LAMERS Staff Writer

Four of British Columbia’s biggest liquefied natural gas proponents have formed an alliance to offer clearer communication to the public on topics of common importance, its inter-

im chair said in an exclusive interview with Pipeline News North. The fledgling B.C. LNG Developers Alliance will consist of Kitimat LNG, which is co-owned by the Canadian units of Chevron and Apache; Petronas-led Pacific NorthWest LNG; Shell Canada’s LNG Canada; and BG Group’s Prince Rupert LNG. Rod Maier, communication man-

ager for Kitimat LNG and interim chair of the alliance, said the association has been in the works for about a year and will be officially launched in late-summer. The LNG Developers Alliance will be a not-for-profit society and consist of a small office to be staffed by up to four people, and supported by resources and representatives from

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member companies who will sit on committees. A blend of dedicated staff will be supplemented by resources and people from the members to work on committees. Maier said the proponents realize the value of common approaches. “There’s an opportunity to collaborate together,” he said. “It’s a more

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efficient use of resources. It provides a common voice for dealing with stakeholders, be it the government, the public, local communities, so that opposed to everybody replicating the same messages and generating the same communication materials, having that through one coordinated approach is useful.” The alliance would like to do for natural gas players what the Canadian Association of Petroleum Producers does for petroleum companies, said Maier. “We look at CAPP as a good model,” he said. “The public can know about a particular issue, position or education, they can go to a simple stop as opposed to different places. When we have all agreed on something it’s usually identified through that association.” Currently there are 15 projects in various stages of development, two of which would transport natural gas produced in B.C. and Alberta to Oregon, where it would be liquefied and shipped. Although the National Energy Board has approved 11 export licenses, none of the proprietors have made final investment decisions. “It’s ultimately a common and a single voice. Having a common voice is better as opposed to four or five different projects, each communicating in a slightly different way. To come through once voice on things that everybody’s aligned on,” Maier added. The alliance would also coordinate common approaches to safety, environmental protection, public consultations and labour strategies. On labour strategies in particular, Maier said there has already been a lot of work done by industry and government. He pointed to the premier’s Working Group on Labour, which released its report in March. The interim chair said labour supply is a concern, but it won’t necessarily be a primary priority for the alliance. “Everybody recognizes that it’s unlikely the communities in northern British Columbia have sufficient labour, let alone British Columbia,” he said. “Even Canada’s probably going to be short. How we deal with that shortage is going to be one of the issues [for the industry] we anticipate.” Maier also commented on the Premier Christy Clark so-called LNG Income Tax. “The critical issue is that we know LNG from British Columbia and Canada is competing in the global marketplace,” he said. “At the end of the day, that LNG has to be competitive as to its cost of supply. All of the elements of government revenue make up a portion of that cost. “At the end of the day we need a competitive fiscal framework in place.”

industry news

Long-term LNG export approvals Awaiting application Steelhead LNG is planning to file for a permit to export LNG from the B.C. coast by the fall. As of June 2014, they have not identified a site. Pending export decisions On March 5, 2014, Canada Stewart Energy Group Ltd. applied for a permit to export 30 MMt of natural gas per month for a period of 25 years from a liquefaction terminal to be located near Stewart, about 300 km north of Prince Rupert. On Dec. 18, 2013 Kitsault Energy Ltd. applied for a permit to export up to 20 million tons of liquefied natural gas per year, for 25 years. Export approvals On May 1, 2014, Oregon LNG Marketing Company received permission from the NEB to export 473 Bcf of natural gas to the U.S., where it will be liquefied and shipped to Asia. The export point is in the vicinity of Kingsgate B.C. On May 1, 2014, Aurora Liquefied Natural Gas Ltd. received permission from the NEB to export 2.3 million tonnes of LNG per year for a 25-year term from a terminal near Prince Rupert, B.C.

On Dec. 16, 2013, Prince Rupert LNG Exports Limited was granted a license to export 21.6 million tonnes of per year for a term of 25 years. On Dec. 16, 2013, Pacific NorthWest LNG received permission from the NEB to export 19.68 million tonnes of LNG per year. One of the largest projects that have been proposed, Pacific NorthWest LNG has emerged the frontrunner. On Dec. 16, 2013, WCC LNG was granted a license to export 30 million tonnes of LNG per year for a term of 25 years. On Dec. 16, 2013, Woodfibre LNG Export Pte. Ltd. earned a license to export 2.1 million tonnes of LNG per year for 25 years. On Oct. 13, 2011, KM LNG was granted a 20year permit by the NEB to export an annual volume of 10 million tonnes of LNG. It was the first LNG export license issued by the NEB since the deregulation of the natural gas market in 1985.

On April. 16, 2014 Triton LNG Limited Partnership received permission from the NEB to export 2.3 million tonnes of LNG per year for a 25-year term from a floating processing plant.

On Feb. 2, 2012, BC LNG Export Co-operative LLC received a 20-year license from the NEB to export 1.8 million tonnes of LNG per year. The proposed LNG terminal on the Douglas Channel near Kitimat will be fed by pipelines from Northeast B.C. owned by Spectra Energy Transmission and Pacific Northern Gas, which are completed.

On Feb. 20, 2014 Jordan Cove LNG L.P. was granted approval by the NEB to export 9 million tonnes of gas per year to the U.S. for 25 years, where it will be liquefied and shipped to Asia.

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9th pipeline planned for B.C.

High North starts Montney drilling

1,244 person camp ready by 2015




TransCanada subsidiary NOVA Gas Transmission announced a new $1.9 billion, 250 kilometre natural gas pipeline to be constructed west of Dawson Creek. It’s the ninth major pipeline proposal in British Columbia. Together they total some 6,225 kilometres. The Merrick Mainline pipeline will connect NOVA’s pipelines 250 km west of Dawson Creek to the proposed Pacific Trail Pipeline that will terminate at the Kitimat LNG Terminal at Bish Cove,. It will be 260 km in length. TransCanada has signed agreements with Chevron Canada and an Apache Canada, the joint investors in Kitimat LNG, for 1.9 billion cubic feet per day (Bcf/d) of firm natural gas transportation services. “The initial work for the project is proceeding well, and we anticipate filing an application with the National Energy Board in the fourth quarter of 2014 for approvals to build and operate the project,” said Russ Girling, TransCanada’s president and chief executive officer. “Subject to the necessary approvals, we expect the Merrick Mainline to begin service in the first quarter of 2020.” The pipeline will only be built if Chevron Canada and an Apache Canada make an affirmative final investment decision. Kitimat LNG is currently in the Front End Engineering and Design (FEED) phase. In January 2014, JGC/ Fluor was awarded the engineering, procurement and construction contract. The companies say an FID will hinge on firm LNG sales contracts and more agreements with First Nations. The Pacific Trail Pipeline is further along the regulatory path than the other pipelines, having already completed its Environmental Assessment and receiving the green light from provincial authorities in 2008. The $1.2 billion, 463 km pipeline runs from Summit Lake to Kitimat. “The Merrick Mainline Pipeline Project will be designed, constructed and operated utilizing TransCanada’s extensive experience in developing safe and reliable energy infrastructure,” said Girling. TransCanada now has five major natural gas pipeline projects under development in the province worth $12.6 billion. The only project that does not require an LNG export terminal is the $1.5 billion, 305 km North Montney Mainline.

High North Resources Ltd. commenced it 2014 Montney oil development drilling program on May 22 at the its Girouxville-Mclean property. The Company’s fourth well is adjacent to a section of land that a neighbouring oil producer has applied to drill four oil wells on. Coring of the target formation has been completed and High North Resources’s management has said it is encouraged by the presence of hydrocarbons in the results. Another well, the company’s fifth, will commence drilling in early June. High North’s property is located approximately 320 kilometres northwest of Edmonton, Alberta. The Company holds a 100 percent interest in three horizontal wells producing 28 degree API oil from the Montney formation. The Company anticipates it will have earned a 100 percent working interest in 38.25 sections of land as of June 1, with prospective Montney rights through acquisitions of Crown land and wells drilled to date. The Company expects to drill a minimum of four horizontal wells per section targeting Montney oil on these lands.

A new 1,244 person work camp will be constructed by Black Diamond Group in northeastern British Columbia. The camp will cost $34 million and take three years to complete. Phase I will see the company complete the first 622 beds during the second half of 2014. Phase II will be completed by April 2015. The company did not announce where the camp will be constructed or for whom. The prolific Montney shale region is known to possess large amounts of natural gas. There are more than 20 natural gas companies currently producing gas or preparing to. Black Diamond, founded in 2003, is a remote lodging, modular building and energy services company. Based in Calgary, Alberta, Black Diamond’s customers include those in oil and gas, mining, power, construction, engineering, military, government and education.

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Why is Opening new energy markets paramount? Northeast B.C.’s natural gas can do for Asia what it did for Vancouver’s filthy airshed, but that will only happen if our gas is as cheap or cheaper than competing projects.

Matt Lamers Photo

Matt lamers Staff Writer

Amid declining demand from the United States for Canadian natural gas, securing new long-term markets is “paramount” to the development of the vast Montney shale gas play, Canadian Association of Petroleum Producers vice president Geoff Morrison said in an interview. “We have a tremendous resource in Northeast B.C., Morrison said told Pipeline News North. “For the upstream to grow, finding new markets is paramount is new to use. “This means Asia.” He also said Canada could look internally to offset the lost American demand, potentially finding new uses

for natural gas domestically, whether that’s in transportation or electricity, but the biggest prize is selling LNG in Asian markets, which he said is vitally important for B.C. in order to get the most value out of the resource. Last year saw Canadian natural gas exports to the United States fall to the lowest level in 19 years, according to recent data by the U.S. Department of Energy (DOE). Fracking technologies have unlocked an unprecedented amount of natural gas in the U.S., offsetting natural gas imports from Canada and forcing prices to record lows. While prices remain near historic lows in North America, the resource sells for up to three times more in Asia. Producers in British Columbia hope to cash in on that price discrepancy, which Pipeline News North call the Alberta-British Columbia Dis-

count (ABCD). Morrison said CAPP’s role is focused on insuring the upstream part of the business remains competitive. “This serves a dual purpose, both for competition in those emerging markets to make sure B.C. gas is competitive on a world market, but it also serves to ensure we remain competitive in a North American context,” he said, noting that Canada will continue to be an important source of natural gas for the United States for years to come. “That doesn’t go away, it’s just a challenge because of the abundance of natural gas in North America. That market doesn’t disappear, it requires us to maintain an eye on competitiveness for that portion of the value chain across the board.” Another market with potential is Western Europe.

Russia has been Europe’s primary source of natural gas for decades, but the country’s brinkmanship has forced European nations to reconsider the relationship. Canada, which currently exports no oil or natural gas to Europe, is poised to make up for Russia’s shortcomings. “Any new market is welcomed by us,” said Morrison. “Germany has a challenge in lots of ways. They relied on nuclear in the past, but they’re moving away from that. Germany is building new coal-burning plants now. In the same was that we’re hoping to find a way to provide access for B.C. and Canadian gas to Asia to help displace coal, that could also be a similar story in Europe. “We think there is a net global benefit to making natural gas abundant and affordable to energy consumers worldwide.”



Northern Gateway On the elusive social license to build Enbridge’s Northern Gateway pipeline, Morrison said it’s just part of the contract. “We’re developing a resource that’s owned by the people for the benefit of the people,” he said. “It’s not in the public’s eye except when something goes wrong, but people have a right to be concerned,” Morrison added. “Gaining the social license is all about demonstrating that you can and have been doing a good job. We are a soundly regulated industry, whether it’s the pipelines or the shipping, and we need to do a better job of explaining that to the public, showing the public that experience in a way that gives them confidence. I think we haven’t done a terrific job and that doesn’t happen quickly.” On Dec. 19, 2013, the Joint Review


Panel established to examine Northern Gateway concluded that the pipeline is in the best interest of Canadians, but not before adding 209 conditions. The federal cabinet has the final say on Northern Gateway’s approval. The decision will be handed down mid-June. The three-person panel weighed information it received during 180 days of public hearings in 21 communities throughout Alberta and B.C. that would be impacted in some way by the $6.5 billion pipeline. “Social license is society collectively agreeing this is a benefit to their community, province or country. “If you look at the oilsands from a national perspective, there are great benefits for Canada. Our provinces have flows from ‘haves’ to ‘have nots’ for example.” Other oil pipeline projects are either

at early stages of regulatory work or are in troubled waters. Energy East would carry 850,000 barrels of crude per day from Alberta to the East Coast; the Trans Mountain pipeline expansion would provide an additional 590,000 bpd from 2017; and the politically challenged Keystone XL Pipeline might deliver 830,000 bpd from Alberta to Steele City, Nebraska, if U.S. President Barack Obama concludes that it is in the best interest of Americans. Having only one buyer for its oil means that the Canadian resource is selling a discount at refineries in the United States. “If we can establish a direct market to Asia we would be getting a greater return for every barrel of oil sold, so there is a national interest,” said the CAPP VP. Whether or not Keystone or

Northern Gateway are built, CAPP is convinced the market will ultimately prevail. “There is such a tremendous resource in Alberta in the oilsands that the world demand for oil continues to grow, though the U.S. demand is shrinking as it becomes more selfsufficient,” said Morrison. “There are a couple other initiatives. TransCanada’s Energy East. Converting their natural gas pipeline to an oil pipeline. “That’s going to involve a significant, exhaustive regulatory hearing. It’s not a matter of changing the valves.” Rail and truck present other opportunities. “We think we need all of those options available to us. It’s not just pipe, it’s not just rail, it’s a combination of all of those.”



details emerge on Matt lamers Staff Writer

Details are emerging on how British Columbia will fulfil its pledge to produce the cleanest LNG in the world. The province is said to be considering a requirement that would force liquefied natural gas terminals to have a carbon footprint at least onethird below global standards. Challenges remain. Even if the industry is developed in accordance with that target, the province won’t meet its carbon reduction target by 2020, according to a report by Environment Canada. That report, released in October, used National Energy Board data to assume 1 billion

cubic feet a day of LNG exports by 2019. The province has promised to reduce emissions to a third below 2007 levels by 2020. Operating the plants using electricity rather than burning natural gas would yield the lowest emissions, at 0.13 metric tons per ton of LNG, but Environment Minister Mary Polak said the government won’t force LNG proponents to follow that route, as doing so would raise costs of LNG producers in the province to the point they would not be able to compete with other global LNG sellers. Woodfibre LNG recently announced that it would power its liquefaction facility with electricity instead of natural gas, which would create significantly less emissions as nearly

your choice of

all of B.C.’s power comes from hydro. The clean LNG promise also raises potential costs for exporters, making B.C.’s gas less competitive on the international stage at a critical time when domestic producers are trying to lock Asian buyers into long-term sales deals. That would be on top of a current carbon tax and levies that have yet to be finalized. The provincial government made developing the LNG industry a key plank in the 2013 election, in which it pulled off an unlikely upset over rival New Democrats. Premier Christy Clark’s Liberals have pledged that developing the LNG industry will create in excess of 100,000 jobs and add about a trillion dollars to the province’s economy by 2046. They also promised the nascent

industry would be the cleanest LNG in the world. Clark’s government is also set to unveil the final version of its so-called LNG Income Tax, which is a levy it will place on the production and export of liquefied natural gas. It’s the key component of Clark’s promise to create a Prosperity Fund for the province, which will clear its approximately $50 billion debt in under 20 years. Ziff Energy estimates that British Columbia’s current carbon tax of $30 per metric ton would translate into an annual payment of about $82 million for an LNG project with four liquefaction units. On a recent sales trip to China and Malaysia, Clark promised to have all government costs related to the government finalized by Nov. 30.



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b.c.’s clean lng Matt lamers Staff Writer

In an effort to gain the support of First Nations on establishing a natural gas industry and enhance the environmental discourse, the British Columbia government said it plans to create the LNG Environmental Stewardship Initiative (LNGESI) . The LNGESI creates a platform for First Nations, the province and the private sector to work together and form consensus on important environmental issues. The proposal was greeted warmly by First Nations leaders. “The Wet’suwet’en First Nation welcomes this initiative and looks

forward to working with the province and other First Nations to turn this concept into a reality. The environmental sustainability of the WFN territory and all of British Columbia is critical to the people of the WFN,” said Wet’suwet’en First Nation Chief Karen Ogen. The province has pledged to establish the cleanest LNG industry in the world. On top of the current levy on carbon emissions, LNG producers will be required to follow strict carbon rules. Those rules, yet to be finalized, will likely be ready by Nov. 30, Premier Christy Clark’s self-imposed deadline for all government-related LNG expenses. Aboriginal Relations and Reconciliation Minister John Rustad said First

Nations have a crucial role in our LNG strategy, and will benefit from the new industry’s jobs, business and community opportunities. “However, we recognize that First Nations feel strongly about upholding their important environmental values,” he added. “We recognize that there’s a need for new tools that will create a positive legacy for First Nations and the environment.” The province said the LNGESI will not have any bearing on the current regulatory process. “We look forward to working with First Nations and the province of British Columbia on this new Environmental Stewardship Initiative,” said Philippe Reicher, vice president, Canadian Energy Pipeline Association.

‘we recognize that First Nations feel strongly about upholding important environmental values. We recognize that there’s a need for new tools that will create a positive legacy.’ R001642872




Natural gas can be a gateway energy: U.N. Matt lamers Staff Writer

A report on climate change mitigation strategies from the U.N. Intergovernmental Panel on Climate Change (IPCC) concluded that natural gas can be a “bridge technology” to a greener future as long as carbon capture and storage (CCS) proves to be a feasible and economic technology. That’s long been the message from the natural gas industry. Canadian Association of Petroleum Producers vice president Geoff Morrison welcomed the findings of the report. “Absolutely,” said Morrison.

“We have a few examples of how that has already happened. The U.S. has the lowest CO2 emissions from energy generation in 20 years, and that is in large part due to the abundance and affordability of natural gas in North America.” Many states that had used coal for electricity generation have already shitched to burning natural gas. “We see a sustained bending of the CO2 curve as a result of natural gas,” added Morrison. Another example he cited is Vancouver, which has benefited from a natural gas pipeline to northeastern B.C. since 1954. In its Summary for policymakers, the IPCC said, “GHG emis-

sions from energy supply can be reduced significantly by replacing current world average coalfired power plants with modern, highly efficient natural gas combined-cycle power plants or combined heat and power plants, provided that natural gas is available and the fugitive emissions associated with extraction and supply are low or mitigated.” Vancouver has a very clean airshed, in large part because of the investments that were made decades ago in hydro and natural gas production in the northeastern corner of the province. Before Spectra’s Westcoast System pipeline was built in 1954, Vancouverites suffered from a filthy airshed. See AIR on Page 28

‘The U.S. has the lowest CO2 emissions from energy generation in 20 years, and that is in large part due to the abundance and affordability of natural gas in North America.’


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fort st. john

Ace in the hand Black Ace Supply is carving out a niche for itself as a locally owned, locally managed oilfield supplier and distributor matt lamers Staff Writer

As he was winding down a successful 25-year career in the surveying industry, Jeff Robertson was looking for his next challenge. And in a growing city like Fort St. John, there’s no shortages of opportunity. He eventually purchased Munro Supply, which was locally owned and operated since 2009, a deal which only closed May 1. Robertson wasted no time, changing the management team and renaming the company Black Ace Supply. He admitted it was a huge

transition, but the fundamentals of the industries remain the same. “The bottom line is the same, and that’s the service,” he said. “We grew a small survey company

in Fort St. john from 12 people to over 100 in the time I was here, all on the back of personalized service.” Robertson had been president

From left: Lee Hartman, Jeff Robertson, Amber Shuya and Joyce Eliuk. Matt Lamers photo

of Waberski Darrow Survey Group Ltd., based in Fort St. John, which was acquired by Focus in 2007. Lee Hartman is general manager, Amber Shuya manages inside sales, Joyce Eliuk does bookkeeping and Robertson is president. Black Ace Supply is an oilfield supply store, offering anything from flanges, soaker pads, threaded fittings, welded fittings, wellsite completion kits, spill kits — anything needed for oil and gas facility construction and maintenance, explained Shuya. It competes with MRC, Distribution Now, Apex Distribution and Baron Oilfield. See SERVICE on Page 28

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Depression and the workplace Mental health can have implications at work. From productivity, absenteeism, disability rates and drug costs, it pays for companies to take health seriously.

Gordon Menelaws and the Canadian Mental Health Association’s Julia Kaisla addressed safety practitioners on May 14 on why mental health is an issue in the workplace, and what they do to tackle the stigma and promote discussion. ` Matt lamers photo

Matt Lamers Staff Writer

Gordon Menelaws counts himself as one of the lucky ones. He wasn’t in a good place in 2002. After losing an election, Menelaws entered a period of depression and struggled with the rejection and having to face his colleagues. He felt betrayed and lied to, he said. What brought him out of his tailspin was support from family, a coworker, exercise and eFAT. “I have no idea what would have happened” had a co-worked not intervened, said Menelaws. “I think I would have suffered there for a long time. The fact that a coworker approached me showed me there was somebody who did care about me­— b ­ecause I thought that nobody liked me at that point in time” meant a lot, Menelaws said. EFAT is a counselling service paid into and shared by

production of companies.” Safety is also an issue. “There’s less attention to your work and you make a lot more mistakes.” Menelaws is currently the Safety Chair for the United Steel Workers at Teck Trail. When he went through his depression, Menelaws felt incredible anger, he said, towards his supervisor and coworkers “for really no reason at all. I was fighting with everybody and that’s just poor for the workplace.” For those who need help, Menelaws and Kaisla suggest seeking information first and seeing a docror. “It almost always starts with your doctor,” said Kaisla “That’s always a good first step.” is a good starting point to learn about different mental illnesses and improve your mental health. key for me was that Mark“The Hoffman/Milwaukee I didn’t know what was hapJournal Sentinel/KRT What is the cost of depression could be singled out. pening to me. If you can read to your company? It’s an issue that has serious implicaup on it, and find out what’s “It’s definitely getting more known in the tions for the oil and gas industry. happening, you will find out workplace, not just in the upstream oil and “From the organizations point of view, where to go to get help,” said gas industry, but in the entire province,” they will see an impact on productivity, Menelaws. “If I could do it said Rick Newlove, Enform’s BC Operaabsenteeism, disability rates and drug again, I would look for intions manager. “WorkSafe has recognized costs,” said Julia Kaisla. “So there’s a cost. formation to find out what On a personal level, if there’s no willingit as a more serious issue. Now accumuwas happening. Now I know lative effects of stress in the workplace ness to talk about mental health, it results what it is.” can actually create a claim through the in a little bit more suffering on a personal Newlove said industries workers compensation board. It’s time for level. are breaking new ground on employers to take note of that and ad“Our goal as an organization to to help their acceptance of the imdress it proactively, and make sure they people get well at work, so they can go portance of mental health. recognize the signs and symptoms as it’s home and contribute to their families and “There are some relics in happening.” communities in a healthy way. So when every industry who have a Gordon Menelaws noticed that machothe workplace doesn’t allow that discuslot of the redneck attitudes, ism was actually a mask for some people. sion to take place, it doesn’t just affect especially from the old style He got around it by holding mandatory their workplace, it affects their families of management,” he said. “I meetings to address the issue, so no one and their community.” think our industry, as well as many others, are becoming aware that that’s not the Teck Trail and other compa- personal to him, and what Operations manager, orga- acceptable way to treat emnies in the Kootenay Region he does to tackle the stig- nized the conference. ployees and deal with menof southeastern British Co- ma and bring discussion Newlove said mental tal illness, because they will lumbia. Four councillors are about mental health to the health can have a major im- harm themselves, the workon call and there is a coun- forefront. pact on the workplace. force and the industry.” cillor on site one day of the The event, sponsored by “The moral of the people, “Agencies, WorkSafe BC week at Teck Trail. Enform BC, also featured a lost time do to being absent and safety associations in Menelaws addressed a presentation by the Cana- from work, lost productiv- B.C. are educating employfew dozen safety practitio- dian Mental Health Associa- ity and just not knowing ers to make them realize ners on May 14 about why tion’s Julia Kaisla. that’s going on in the work- that it’s a factor they should workplace mental health is Rick Newlove, Enform’s BC place is detrimental to the be taking seriously.”




This is what

an LNG boot camp looks like

The LNG workshops are free to attend and will help businesses equip themselves to take advantage of economic growth from natural gas and other developments. courtesy photo

Matt Lamers Staff Writer

Help is on the way for local businesses interested in getting involved in natural gas contracts. The Ministry of Jobs, Tourism and Skills Training and Northern Development have partnered to deliver a series of seminars that are helping businesses take advantage of major natural gas projects in northern B.C. So far the seminars have been held in Kelowna, Prince Rupert, Kitimat and Terrace. Dates and locations of future seminars have not been yet announced. The “Contractor-Supplier boot camps” have focused on procurement opportunities, whereas seminars will also provide local business owners with the information they need to bid on major contracts.

“Businesses here want to be part of the process, but a lot of them don’t know how to get their information to the oil and gas companies to get that work” said Northern Rockies Regional Municipality Mayor Streeper. “The government wants to show these people what they have to do to get these contracts.” In the vicinity of the Northern Rockies Regional Municipality rests two of the biggest untapped shale gas fields in the world, Horn River and Liard Basin. Apache Canada has called the Liard Basin “the best shale gas reservoir in North America” and said the Horn River Basin is “among North America’s leading shale gas basins.” Streeper said he also wants the big out-of-town companies to know that Northern Rockies Regional Municipality has a lot of what they need locally.

Seperatly, expos and trade shows have been held in Fort St. John and Fort Nelson that aim to connect local suppliers with much larger producers to facilitate connections that are normally hard to make.

SEE RELATED STORY ON PAGE 28. “When oil and gas corporations come to work in Northern Rockies Regional Municipality, we want them to know that we have a strong base for contracting companies, transpor-

An attendee at the FSJ Energy Expo in May.

tation services, expediting crews. “A lot of the facilities they require are already in Fort Nelson.” advice for Streeper’s local business owners is to obtain the information they need to land big contracts. “Get on their contact lists, find out if you need safety specifications, get to know what they require for you to work for them. That will all come out in the seminars.” Bev Vandersteen, head of Fort Nelson and District Chamber of Commerce, said LNG projects are an important opportunity for businesses in the Northern Rockies Regional Municipality. business has “Local the expertise and drive to provide services and supplies to the lequified natural gas industry, and we need to ensure these businesses have every opportunity. See JOBS on Page 29



pipeline New regulations imposed by ottawa are intended to enhance pipeline safety and quell public concern over an unprecedented expansion of pipeline systems across Canada. Matt Lamers Staff Writer

With a major decision on the proposed Northern Gateway pipeline days away, Ottawa is stepping up regulation of the pipeline industry in an effort to increase safety and placate a wary public. Three significant pieces of legislation were unveiled in May. Canadian Natural Resources Minister Greg Rickford announced new legislation that would make companies operating pipelines liable for as much as $1 billion in costs associated with spill cleanup, whether or not the company was at fault. If the

company is found to be at fault, liability is unlimited. The government will also require most pipeline companies to establish a fund for pipeline abandonment and increase the amount of money available for offshore oil spill cleanup to $1.6 billion, mostly through the Canadian Ship-source Oil Pollution Fund and private insurance that shippers operating in international waters are required to have. The legislation also steps up inspections and audits by the National Energy Board. Ottawa isn’t wasting any time. Rickford said the legislation could go into force his summer, enhancing what he called a “world-class pipeline system

regime” in Canada. “Our government is demonstrating consistent, significant action to further enhance Canada’s pipeline safety system,” he said. “One pipeline issue is too many and we must continue to strive for zero incidents.” The move was intended to quell public concern over an unprecedented expansion of pipeline systems across Canada. In British Columbia alone, there are nine significant pipeline projects in the works, totalling some 6,200 kilometres. Much of that construction will take place north of Prince George. Two of the proposals are expansions to pipelines that already exist: Trans Mountain and Pacific Northern Gas’ pipelines.

“Canada is leading the way in pipeline safety,” said Prince George-Peace River MP Bob Zimmer. “Our government’s ‘polluter pays’ principle protects all Canadian taxpayers and our environment.” Energy East, a proposed pipeline designed to carry 1.1 million barrels of oil per day from Alberta to Eastern Canada, is one of the largest in North America. The TransCanada project would cover about 4,600 kilometres through six provinces. The Keystone XL Pipeline is a proposed 1,897 km oil pipeline that would begin in Hardisty, Alberta and extending to Steele City, Nebraska. It awaits a decision by U.S. President Barack Obama.

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Alberta Premier Dave Hancock welcomed Ottawa’s strict measures. “Pipelines are a safe, efficient and reliable way for Canada to move its oil and gas products, and are critical to accessing key global markets for Canada’s energy products,” he said. “These actions build on the principles of prevention, liability and preparedness, and also recognize that meaningful Aboriginal participation in pipeline safety discussions is imperative. The future of our energy industry rests with our reputation to act on initiatives that protect our environment and consider the important role of Aboriginal participation.” Pipeline abandonment Starting Jan. 1, 2015, pipeline companies under the jurisdiction of the federal government must have started creating a fund to pay for the abandonment of pipelines after their service lives have come to an end. The NEB said the mechanism to set money aside could be a trust, a letter of credit from a bank, or


a bond. The Calgary-based federal body said it wanted to ensure that the government and private landowners aren’t left to pick up the tab on land rehabilitation and environmental costs after pipelines have reached their expiry dates. “The board will require almost all pipeline companies to provide their trust agreement, surety bond or letter of credit for approval,” the NEB said. “The board will regularly review the companies’ estimates of abandonment costs, the coverage provided by their set-aside mechanisms, and the assumptions about how those funds will grow.” The NEB regulates pipelines that cross provincial boundaries. The federal body said abandonment costs associated with current pipelines it regulates would total $7.2 billion. On the water Also in May, Ottawa unveiled long awaited plans to bolster safety at sea. The government will increase the possible payout due to an

oil spill from the Canadian Shipsource Oil Pollution Fund to $400 billion. That brings the total amount of money available in the event of a marine oil spill to $1.6-billion when you include ship owners’ insurance and the Oil Pollution Fund. “With these changes, Canada will have the most robust and comprehensive liability and compensation system for spills from ships anywhere in the world,” said Lisa Raitt, transport minister. “We want to make sure that if there is a spill ... that it is not the Canadian taxpayer, that it is the polluter who pays at the end of the day.” Hancock said energy development won’t happen without environmental safeguards. “Every Canadian, no matter what province or territory they call home, expects that energy development is done with a high degree of environmental safeguards and the province of Alberta supports initiatives like those announced today that strengthen the responsible development of energy resources.”

‘Canada is leading the way in pipeline safety,” said Prince GeorgePeace River MP Bob Zimmer. ‘Our Government’s ‘polluter pays’ principle protects Canadian taxpayers and our environment.’

courtesy photo





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‘We pride ourselves on the service side’ SERVICE from Page 19 Those are some big names, but Hartman and Robertson are satisfied with their position. “Those companies are our competition, but we’re not their competition. We’re fine with that,” said Robertson. “We think there is enough interest in shopping local and doing business where money stays in town. We envision ourselves as being the big local guy. Do we want to become a multinational? Absolutely not. “We pride ourselves on being small and flexible and being able to provide that extra level of service,” he added. “It’s just to carve out a little niche for ourselves through good service. “In this industry we’re an anomaly because we’re a local ma and pa shop,” he said. “There’s three employees plus myself. We’re competing against multinationals. We’re the little guy.” Black Ace Supply is looking to broaden its market share. “The opportunity with changing our name is to get a little bit of momentum going,” said Hartman. “Hopefully by making a bit of

a splash we’re able to get more people coming in to see what we’re up to.” For Robertson, the foundation of Black Ace Supply’s success will be the same as his previous position in land surveying: customer service. “Customers,” he said. “The key to our success is to keep our customers happy through exemplary service. “We provide solutions to our customers needs. When they need something for a project, we’ll get it. Our customers know that.” “We pride ourselves on the service side of things,” added Hartman.

‘In this industry we’re an anomaly because we’re a local ma and pa shop.’



first nations

All hands on deck at FSJ Energy Expo FORT ST JOHN from Page 25 The city’s economy is already at what economists term full employment, where everyone who wants a job already has one, and businesses in town have been struggling to balance wage inflation, profitability and maintain their employees. “There’s lots of opportunity up here, and not just in oil and gas. There are hydro projects. Wind. It’s big,” he said. Donny van Dyk, manager for coastal Aboriginal and community relations at Northern Gateway Pipelines was at the expo to let local suppliers know about the opportunities that exist with the $6.5 billion project.

Northern Gateway recently launched a portal – – that it hopes will help its general contractors procure local business. “We think there are tremendous opportunities for the businesses that are here today (at the Fort St. John Energy Expo),” said van Dyk. “We’re hoping to have many of the suppliers here add their information to. We need to build our database.” On Dec. 19, 2013, the Joint Review Panel established to examine Northern Gateway concluded that the pipeline is in the best interest of Canadians, but not before adding 209 conditions that

Enbridge must meet. The federal Cabinet has the final say on Northern Gateway’s approval. A decision from Ottawa is expected before the end of June. “This FSJ Energy Expo is really a good opportunity for us to share the story on our six-and-ahalf billion dollar project that will run from Bruderheim, Alberta, to Kitimat, British Columbia. We have a billion dollars in locally procurable goods. “Definitely we’re looking local first.” Paul Jeakins, commissioner and CEO of the BC Oil and Gas Commission, was on hand to meet industry players. The native of Vancouver said the FSJ Energy Expo

‘Natural gas development is the big thing in the province. Everyone is talking about it. It used to be forestry, and now we’ve moved to natural gas.’

is great for the community, because its a good venue to share information, “and I think it’s really important we’re a part of that.” His objective was to get information out. “That’s what the OGC does,” he said. “We put out a lot of information on what we do with the province and we hope people ask us all the hard questions ... when they have questions, we want to give them answers. We’re regulators, not advocators. “Natural gas development is the big thing in the province. Everyone is talking about it. It used to be forestry, and now we’ve moved to natural gas.”




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The province

Sam Beebe photo

Courtesy photo

Louis Veest photo

LNG Canada chooses main contractor

Can natural gas save BC Ferries?

5 factors determine LNG competitiveness




CFSW LNG Constructors was chosen to be the main contractor for LNG Canada’s proposed export terminal. The company is a partnership of Chiyoda, Foster Wheeler, SAIPEM and WorleyParsons. The contract covers Front End Engineering and Design (FEED) and project execution services. Final construction remains subject to a final investment decision by LNG Canada’s partners, Shell Canada Ltd., Korea Gas Corporation (KOGAS), Mitsubishi Corporation and PetroChina Company. The target is still 2015 for the FID. “While this is a great step forward, a decision to build the facility is still some time away,” said LNG Canada CEO Andy Calitz. Front End Engineering and Design activities began on June 1. The government of British Columbia hailed the announcement as a significant milestone in its vision to foster and LNG industry. “LNG Canada’s decision to select a main contractor is great news, moving the province closer to a new LNG export facility and the company another step forward toward a final investment decision,” said Rich Coleman, deputy premier and minister of natural gas development. “Developing an LNG industry will result in some of the largest private-sector investments in British Columbia’s history, and will produce new economic activity for our communities, creating thousands of jobs for British Columbians.” Announced in 2012, LNG Canada proposes building an LNG export terminal, including marine facilities, facilities for storage and a gas liquefaction plant. This project’s backers have deep pockets, making its chances of success better than others in B.C. On Feb. 24, 2014, the British Columbia Environmental Assessment Office approved LNG Canada’s Application Information Requirements. The document identifies the information required in its application for an Environmental Assessment Certificate under the BC Environmental Assessment Act. See LNG on Page 28

A study by the Canadian Natural Gas Vehicle Alliance suggests that the West Coast can benefit from marine use of liquefied natural gas. The cost savings in the long run would be significant, it found, possibly even enough to save the ailing BC Ferries corporation. Given new marine regulations taking effect in 2015 that require a 90 per cent reduction in fuel sulphur content, LNG might be the best alternative because it cuts sulphur emissions by at least 90 per cent, nitrogen oxide emissions by 35 per cent or more, particulate matter by at least 85 per cent, and slashes greenhouse gas emissions by nearly 20 per cent. The report highlights the benefits LNG as an affordable, lower emission fuel for the marine sector as a realistic alternative. The report, titled “Liquefied Natural Gas: A Marine Fuel for Canada’s West Coast” says all the technologies needed to use LNG as a marine fuel are proven and commercially available. “Canada has a tremendous natural gas resource advantage,” said president of the Canadian Natural Gas Vehicle Alliance, Alicia Milner. “Allowing access for LNG in the marine sector is smart and strategic for Canada. British Columbia is uniquely positioned to become a preferred North American destination for LNG bunkering, with Port Metro Vancouver well-suited to be a leader.” Milner chaired of the project steering committee. There were 18 project participants, including BC Ferries, Encana, Port Metro Vancouver, RollsRoyce and STX Canada Marine. The initiative was jointly funded by Transport Canada, industry and others, and analyzed six coastal vessels. It found that fuel costs fell more than 50 per cent. Five of the ships broke even in less than six years, meaning significant cost savings kicked in in year six. It also recommends changes to Canada’s marine regulatory framework to allow for the review and approval of new LNG projects. The report also suggests the marine sector can also serve as a new market for B.C.’s extensive natural gas resources. Under a “medium” adoption scenario, 150 LNG vessels operating off the coast by 2025 would create new demand equal to 8.5 per cent of B.C.’s 2012 natural gas consumption.

Ernst & Young says it knows the five factors that will determine British Columbia’s competitiveness in the liquefied natural gas trade. On May 20, the global leader in assurance, tax, transaction and advisory services said industry proponents will have to address five key factors that impact competitiveness in order make the province’s LNG dreams a reality. Those factors are: global competition, First Nations, capital allocation, fiscal policy, and people, processes and costs. “There’s no denying B.C.’s potential in the global LNG market, but success for players won’t come easily,” said Barry Munro in a release. “Investment will depend on whether LNG projects are competitive globally. Plentiful natural gas reserves alone will not support development.” Currently there are 15 projects in various stages of development, two of which would transport natural gas produced in B.C. and Alberta to Oregon, where it would be liquefied and shipped to Asia. Although the National Energy Board has approved 11 export licenses, none of the proprietors have made final investment decisions. The first FIDs could come by the end of 2014. Leading proponents are Pacific NorthWest LNG and the much smaller Woodfibre LNG. “Unanswered questions revolve around many of these factors — each with the power to attract or deter investment here in Canada,” added Munro, who is from EY’s Canadian division. “Working together with the various stakeholder groups to address these questions head on is the only way we stand to benefit from BC’s LNG resource potential.” Ernst & Young also identified as crucial to developing the industry: addressing complex capital allocation decisions, understanding how competition impacts supply, demand and pricing balances, creating a framework that’s supported by First Nations, building a fair fiscal policy and developing world-class competencies around people, processes and costs.

Staff Writer

Staff Writer

Staff Writer

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the charts

Alberta-B.C. lng Discount

January 2013 through May 2014

The so-called Alberta-B.C. Discount (ABCD) is the difference in price that a British Thermal Unit of natural gas costs in Tokyo compared to Alberta. The ABCD is at the heart of the drive to export LNG to Asia. (C$)

Alberta natural gas price

January 2013 through May 2014

The AECO “C” spot price, the Alberta gas trading price, is one of North America’s leading price-setting benchmarks. The price has doubled in the past year, but remains at or near historic lows. (C$)

Japan natural gas price

January 2013 through May 2014


Hitachi opens Van City office Matt Lamers Staff Writer

Hitachi’s coming to Vancouver to tap North America’s booming natural gas trade. High-Technologies Hitachi Corp. and Air Water Plant & Engineering Inc. (HTAW ) invested $2.2 million to open their North American head office in the lower mainland this month. Opened on June 2, a newly established company will sell services for LNG transport tank containers and related products. The office will coordinate manufacturing and sales in North America for tank containers that will be used for transporting LNG and related products, according to a release. The release said HTAW will use Hitachi High-Tech’s sales expertise and network in North Ameri-

ca to market LNG transportation tank containers that utilize their Air Water Plant & Engineering’s cryogenic thermal insulation technologies. The move by Hitachii was facilitated by B.C.’s Ministry of International Trade’s office in Tokyo, Japan, where it sold the province on its low-tax environment and easy access to both West Coast and Asian markets. The continent has been awash in natural gas since hydraulic fracturing, a.k.a. fracking, unlocked massive deposits of gas in Canada and the United States. There are 15 projects which hope to export natural gas produced in B.C. and Alberta to Asia. Two are in the American state of Oregon, while the rest would be established on B.C.’s coast, although experts predict only two or three will ever be built. See HITACHI on Page 29

Japan LNG Import Price was trading at 15.23MMBtu in the first week of May, down slightly from the previous month. This is a change of -3.52 per cent from one year ago. Source: World Bank (US$)

U.S. natural gas prices The Henry Hub Natural Gas Spot Price (dollars per Million Btu) traded at $4.10 in the first week of December and began June at $4.49. It peaked on Feb. 17 at $6.24. Source: EIA (US$) December 2013 through June 2014

Natural gas land auctions in B.C.

October 2013 through May 2014

Proceeds from oil and gas land auctions in B.C. have been steadily increasing in the past six months, with record sales per hectare in February. Net sales have cooled, but price per hectare is still red hot. Source: BC Oil and Gas Commission (C$ millions)





A report on climate change mitigation strategies from the U.N. Intergovernmental Panel on Climate Change (IPCC) concluded that natural gas can be a “bridge technology” to a greener future.

AIR from Page 18 R001622840

“Now Vancouver is striving to be the greenest city on the planet, in part because we made that investment in natural gas 50 years ago,” said Morrison. It’s a scenario the industry hopes will be played out in Asian countries, which are keen to clean up their acts and power their growing economies at the same time. The IPCC report concluded: “In mitigation scenarios reaching about 450 parts per million (ppm) carbon dioxide equivalent concentrations by 2100 [those in which global warming is likely to stay within 2 degrees Celsius of pre-industrial levels], natural gas power generation without CCS acts as a bridge technology, with deployment increasing before peaking and falling to below current levels by 2050 and declining further in the second half of the century.” “The same opportunity exists

LNG from Page 26 By the end of 2014, LNG Canada is scheduled to submit its application for an Environmental Assessment Certificate. Investors shuffled their stakes in April when Shell picked up 5 per cent from Kogas and Mitsubishi, respectively, increasing the former’s share to 50 per cent. Kogas and Mitsubishi were left with 15 per cent apiece. PetroChina still owns 20 per cent. If an affirmative investment decision is made, LNG Canada will initially consist of two LNG processing

in Asia,” added Morrison. “If we can make natural gas affordable and abundant in the world market in the same way we have done in North America, in aggregate, we will be doing more good for the planet by producing this natural gas.” A gateway to what? Future world demand for energy is going to involve all energy sources, say analysts. “What we have to do is change that energy mix from a higher carbon mix to a lower carbon mix. Natural gas is obviously part of that.” CAPP advocates taking some of the wealth that is generated by developing petroleum and investing it into alternate technologies. “Using the wealth from this industry to find those technologies is part of that transition to the future. We don’t know what that looks like yet. That’s for the markets and governments to choose.”

units, which are referred to as “trains.” Each will have the capacity to produce six million tonnes of LNG annually, with an option to expand the project in future years to four trains. “We will continue to work with the B.C. and Federal governments, First Nations communities in northwest B.C. and other stakeholders to develop a project that is economically viable and, if we take the decision to construct this project, it will be technically advanced, it will meet the high environmental standards expected of us, and it will create tremendous opportunity for the people of B.C. and Canada,” added Calitz.



Trade shows connect workforce Sessions, or ‘boot camps’, teach local business across the province how they can be part of the ‘incredible generational opportunity’ related to gas production. JOBS from Page 21 “Through initiatives like the Contractor-Supplier boot camps and RFP seminars, we can assist local business in being prepared for upcoming opportunities,” she added. Sessions have also been held in Kitimat and Terrace. A “boot camp” was also held at the Heritage Centre in Burns Lake, where the Village of Burns Lake, the Burns Lake Chamber of Commerce and the Regional District of Bulkley-Nechako attracted participants from across northern B.C. Rich Coleman, minister of natural gas development, said the LNG-Buy B.C. program will lead to partnerships for B.C’s businesses to support the liquefied natural gas industry. “We will ensure our business community is in-

tegrated into this sector so that they benefit from this generational opportunity, along with all British Columbians,” he said. Shirley Bond, minister of Jobs, Tourism and Skills Training, said the seminars have successfully helped local businesses fill in the gaps on LNG. “Workshops and seminars will provide practical information including specific tips on what proponents look for in a contractor and the steps small- and medium-sized companies need to do to be ready to take part when these global proponents start looking for B.C.based suppliers,” she said. “Premier Christy Clark made a commitment to help B.C. companies connect with the opportunity of LNG and these boot camps and workshop are part of meeting that commitment,” the minister of

Jobs, Tourism and Skills Training added. Bond said that the LNGBuy BC is focussed on ensuring B.C. businesses have the tools they need to connect with the opportunities that LNG offers. “The boot camps and seminars at the conference and throughout the province afterwards will provide valuable insights

into how B.C. companies can be part of the incredible generational opportunity of LNG. “The new online tool we are demonstrating at the conference and formally launching later this year is the platform British Columbia will use to showcase to LNG proponents what local businesses have to offer.”

Natural gas guru Bill Gwozd was at the FSJ Energy Expo, where he gave the keynote speech. Matt lamers photo

‘Businesses here want to be part of the process, but a lot of them don’t know how to get their information to the oil and gas companies to get that work. The government wants to show them what they have to do to get these contracts.’

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None have made final investment decisions yet. “The decision by Hitachi High-Technologies Corporation and Air Water Plant & Engineering Inc. to locate their North American operations in British Columbia speaks to our businessfriendly climate, our competitive tax regime and our highly skilled workforce,” said Teresa Wat, British Columbia’s minister of International Trade. HTAW president Marc Bolduc said there is a growing need for small- and medium-volume natural gas transportation for applications like small-scale power plants and high-horsepower LNG-powered locomotives. Demand for these kinds of applications will be met through trucks and railways, rather than the conventional large-volume transportation means of pipelines. “By locating our head office in Vancouver, we will be well-positioned to reach out to companies in Canada and the U.S. who are looking to efficiently transport natural gas using our LNG tank containers and related products. “British Columbia was the ideal choice for us to base our operations,” Bolduc added.


Fort St. John 250.785.6009

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Fort St. JOhn

par for the course Kevin McNee won his second Fort St. John Petroleum Association Oilmen’s Golf Tournament at the Lakepoint Golf and Country Club. There were 304 golfers that attended the tournament that concluded on June 8. McNee took the Championship Flight on Saturday, one up over Tom West. Matt lamers photos

Matt Lamers Staff Writer

Kevin McNee cruised to his second consecutive victory at this year’s Fort St. John Petroleum Association Oilmen’s Golf Tournament. McNee took the Championship Flight on Saturday, one up over Tom West. “The conditions were absolutely perfect,” said McNee. “I had two of the best groups I’ve ever played with last year and this year.” The four-time semifinalist himself works with M & M Resources in Fort Nelson while West made the drive

from Grande Prairie, where he’s a manager at Weatherford Completions. McNee and West squared off for the Championship after coming out on top after 36 holes on Thursday and Friday among 304 competitors. “The camaraderie between the people makes this tournament great,” said McNee. “Everyone here is in the oil and gas industry and the industry is so busy that guys never get a chance to come out here and play. This is something that everyone has checked on their calendar. It’s a can’t miss. It’s just a lot of fun.” West agrees. “It’s a great event up here

because a lot of these guys are from out of town and I don’t get to see them too much,” he said. “The camaraderie and networking that happen here are great. It keeps everybody coming back. “What makes the tournament so popular and fun is that you can hang out with your buddy and golf is secondary. It’s the atmosphere that people come for. “ Lee Hartman, the tournament’s chairman, said the tournament is a great venue for people who compete against each other in business to have some fun together. “It’s a good event for our

community and a good social outing for the guys who have had a long, hard winter,” he said. “Sometimes there’s guys you see at the golf tournament that you don’t see for the whole year.” Hartman heads up the 22-person committee that organizes the annual tournament. The four-day event also has of a comedy night and a couples’ dance to get more people involved. Hartman praised Lakepoint Golf & Country Club, where the tournament’s been held every year, and the committee. “It’s a fantastic course,”

he said. “It’s ranked one of the best courses in B.C. The course has its roots in the oilpatch because the land was originally loaned by PetroCanada. Oilpatch companies also had a hand in building some of the infrastructure.” McNee said Lakepoint’s tradition and high quality make the course special. “This is one of the top golf courses in all of the province. It’s an old golf course, it’s 60 years old. The true, original design makes is a golf course we’re pretty fortunate to have in this area. I grew up on this golf course. So it’s pretty special to me,“ he said.



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Pipeline News North June 2014