July 2008 IssuE
Doing Business
Alberta Injects New Money into Tech Development
BY NORDAHL FLAKSTAD
Freelance Writer
A research-and-development tax-credit program is a key element of a $178-million Government of Alberta initiative to boost investment in new “technopreneurship” projects. Other elements of the plan, which follows up on recommendations of a 2007 government-industry task force, include
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improved access to early stage seed money, venture capital and regional business services
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introduction of technology development advisers
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implementation of innovation vouchers
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enhancements to product development centres
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a demonstration fund
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a youth technopreneurship project.
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TECH LAUNCH |
Government Unveils Plans
For Fuel Gas Best Practices
The Alberta Government is partnering with industry to promote practices that reduce the amount of natural gas used in energy resource extraction. These fuel gas best management practices, as they’re called, will also decrease the industry’s greenhouse gas emissions and prolong the life of Alberta’s natural gas reserves.
Alberta Energy Minister Mel Knight says the plan “demonstrates that energy efficiency can yield real benefits — both environmental and economic.”
A 10 per cent reduction in fuel gas use would reduce greenhouse gas emissions by more than 2.1 million tonnes per year — the equivalent of removing 500,000 cars from the road.
The best practices amalgamate 17 different operational modules. They were developed with participation from Alberta Energy, the Canadian Association of Petroleum Producers, the Small Explorers and Producers Association of Canada, the Gas Processing Association Canada, the Energy Resources Conservation Board, Natural Resources Canada and CETAC-West.
Mega Shopping Mall
Plus Horse Track
Planned for Balzac
Developer Ivanhoe Cambridge will open what’s being called Alberta’s first enclosed mall project in 20 years. The CrossIron Mills shopping centre at Balzac, north of Calgary, will open in August 2009. The 1.1-million-square-foot mall will contain 200 specialty stores and cost an estimated $200 million.
The CrossIron complex and grounds will also include a state-of-the-art horse racing centre, developed and operated by the United Horsemen of Alberta. The racing centre will feature a one-mile track for thoroughbreds, a seven-furlong track for standardbreds, a gaming parlor, an entertainment stage and a simulcast room.
Bitumen Output
Far Outpaces Conventional
Production of Alberta bitumen surpassed conventional oil by more than 250 per cent in 2007, the Energy Resources Conservation Board estimates.
A recently released ERCB report, Alberta’s Reserves 2007 and Supply/Demand Outlook 2008-2017, says bitumen production of 482 million barrels averaged 1.32 million barrels per day, a rise of five per cent over 2006. That compares with conventional oil production of 191 million barrels or 524,800 bbl/d, a 3.5 per cent decrease.
Other highlights include
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a forecast that Alberta’s annual bitumen production will reach more than one billion barrels by 2017
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an estimate of Alberta’s total remaining established bitumen and conventional oil reserves of 174.2 billion barrels — that’s 172.7 billion barrels of bitumen and only 1.5 billion barrels of conventional oil
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an estimate of remaining and established, marketable conventional and coalbed gas reserves of 39 trillion cubic feet
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an estimate of remaining established coal reserves at about 37 billion tons.
Banff Buses Go Hybrid
The Town of Banff has become the first municipality in Canada with an all-hybrid-electric transit fleet. Banff spent an additional $970,000 beyond the $1.6 million that standard diesel buses would have cost. Parks Canada contributed $45,000.
Total Pushes Back
Joslyn Start-Up
Regulatory delays have Total E&P Canada Ltd. modifying its schedule for the Joslyn oilsands complex. Opening of the integrated project is delayed at least a year from the earlier projected date of 2012.
The company now predicts that its Fort McMurray-area oilsands project will come on-stream “before 2015.”
Firestone Venture
Spins Off New Firm
Firestone Ventures Inc. of Edmon-ton is spinning off its Canadian assets into a new public company called Northern Tiger Resources Inc.
The arrangement entails Firestone’s Sonora Gulch gold-silver property under development in the Yukon and an agreement with Sherwood Copper Corp.'s wholly owned subsidiary, Minto Explorations Ltd. The latter owns and operates a copper-gold mine 40 km east of Sonora Gulch.
Minto will acquire a 25 per cent interest in Northern Tiger in exchange for giving Northern Tiger five sets of mineral claims and its extensive Yukon exploration base.
Lockerbie & Hole
Secures Fort Hills Contracts
Lockerbie & Hole Inc.’s Industrial Group, in a joint venture led by CH2M HILL, has contracted with Fort Hills Energy LP to provide engineering, procurement and construction services for the Fort Hills Oil Sands Project. The two contracts involve site utilities for water supply and water treatment, plus other utility services. Lockerbie’s work is worth about $320 million.
Petro-Canada Oil Sands Inc. is the contract operator of the proposed Fort Hills project, which includes a mine 90 km north of Fort McMurray and the Sturgeon Upgrader 45 km northeast of Edmonton.
Ivanhoe to Buy
Three Talisman Leases
Ivanhoe Energy Inc. is paying $105 million for three oilsands leases in the Athabasca region from Talisman Energy Canada. Ivanhoe will apply its patented HTL heavy-oil upgrading technology at the sites.
Ivanhoe has existing mineral interests in California's San Joaquin Basin, as well as holdings in China’s Dagang oilfield and the Zitong gas projects.
TransAlta Expands
Summerview Wind Farm
TransAlta Corp. will add 66 MW of generation to its Summerview wind farm near Pincher Creek. This second phase of the wind farm will cost $123 million.
Construction will start in the second quarter of 2009 and operation is expected to begin early in 2010. Summerview will then have 136 MW of total installed capacity.
The 22 wind turbines — each a three-MW, V90 Vesta — will go beside the original Summerview site.
Enbridge Sells Interest
In Spanish Company
Enbridge Inc. is selling its 25 per cent interest in Compania Logistica de Hidrocarburos SA, the leading pipeline transporter of refined products in Spain. The $1.3- billion sale is being made to a group made up of subsidiaries of Deutsche Bank AG, the Public Sector Pension Investment Board, Stichting Pensioenfonds Zorg en Welzijn and AMP Capital Investors.
Proceeds will help fund Enbridge's extensive list of expansion pipeline projects in North America.
Morrison Hershfield
Connects With Suncord
Morrison Hershfield Ltd. has joined forces with Suncord Engineering Ltd. of Edmonton, creating a combined staff of nearly 700.
Established in 1981, Suncord provides mechanical engineering services for building and industrial projects — including project management, conceptual studies, design, energy conservation, engineering studies, mechanical system instrumentation, HVAC systems, commissioning and maintenance.
Morrison Hershfield offers engineering and management services for facilities in life sciences, industrial, telecommunications, transportation, land development, and water and wastewater. It has offices in 13 North American locations.
EPCOR and Suncor Sign Water Pact
EPCOR will provide water services for 3,500 residents and staff at Suncor Energy Inc.’s Voyageur project near Fort McMurray. For $99 million, EPCOR will design, build, own and operate a potable water and wastewater treatment plant over a 20-year term.
The project will supply and service the new Suncor Voyageur campsite, administration building and related support buildings.
Penn West Purchases Endev Energy Inc.
Penn West Energy Trust will acquire all outstanding shares of Endev Energy Inc. for $170 million. The purchase boosts production at Penn West by about 3,500 barrels a day of oil equivalent — 78 per cent natural gas and 22 per cent light oil and natural-gas liquids.
Endev’s primary property is close to Majorville in southeast Alberta, complementing Penn West’s nearby operations.
Governor Likes TransCanada/Foothills Alaska Pipeline Bid
Gov. Sarah Palin is urging Alaska legislators to approve a natural gas pipeline as it’s been proposed by TransCanada Alaska Company and Foothills Pipe Lines Ltd.
The so-called TC Alaska application seeks approvals for a 48-inch diameter, mostly buried pipeline, running about 2,750 km from a natural gas treatment plant at Prudhoe Bay on the North Slope to Alberta. Its capacity would be 4.5 billion cubic feet per day.
The Alaska section would be about 1,200 km long with six compressor stations at start-up and five natural gas delivery points in Alaska.
The application includes an expansion capability of up to 5.9 b.c.f. per day. Further expansions would include a combination of additional compression and looping.