Amid Rocky Election, Canada to See $2.5 Billion in Pipeline, Terminal Kickoffs Before Year's End

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Researched by Industrial Info Resources (Sugar Land, Texas)--Canada is headed for a national election next month, and one of the most contentious issues is the proposed growth of its Oil & Gas Pipeline and Terminal industries. The nation ranks fourth worldwide in crude oil production, but growing concerns about climate change and the influence of energy companies on elected officials are putting many big-ticket projects at the mercy of the electorate. Industrial Info is tracking nearly $2.5 billion worth of pipeline and terminal projects that are scheduled to begin construction in Canada before the end of the year.

Click on the image at right for a breakdown of projects in Canada's Oil & Gas Pipeline and Terminal industries that are set to kick off from October through December, by industry sector.

Energy accounts for more than 10% of Canada's annual gross domestic product, and the ongoing expansion of the Trans Mountain Pipeline is widely expected to increase crude oil exports. The pipeline system is tripling its capacity to 890,000 barrels per day (BBL/d) of various crude oils and refined products. With the support and approval of Prime Minister Justin Trudeau, Canada purchased the project last year from Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) for about US$3.4 billion. Trudeau's decision was intended to support the expansion after Kinder Morgan decided to significantly reduce its presence north of the 49th Parallel.

A wide swath of environmental and indigenous groups have viewed Trudeau's move as a betrayal of his pledge to combat climate change, threatening his party's support in the coming election. But at least one small part of the Trans Mountain project is currently scheduled to begin construction before the end of the year: the estimated $40 million expansion of the Wolf Crude Oil Pump Station near Edson, Alberta, which includes the addition of pumps and related equipment to handle higher capacities. For more information, see Industrial Info's project report.

Another major expansion project coming to fruition is Enbridge Incorporated's (NYSE:ENB) (Calgary, Alberta) T-South Reliability and Expansion Program in British Columbia, which involves adding new--and replacing old--compressor stations, among other upgrades. The T-South system runs from Chetwynd, which is near Fort St. John, to Huntingdon, which sits on the Canadian-U.S. border. Individual additions and modifications are valued at:

• $148 million at Compressor Station 3 in McLeod Lake; see project report
• $133 million at Compressor Station 4A in Summit Lake; see project report
• $130 million at Compressor Station 4B in Hixon; see project report
• $130 million at Compressor Station 5 in Quesnel; see project report
• $130 million at Compressor Station 6A in 150 Mile House; see project report

Terminal projects set to kick off in the fourth quarter include Tidewater Midstream and Infrastructure's (Calgary) estimated $50 million natural gas-storage reservoir gathering and injection field and accompanying $50 million compressor station in Grande Prairie, Alberta. The 100 billion-cubic-foot storage project is expected to include injection, withdrawal and observation wells and utilize three depleted reservoirs. For more information, see Industrial Info's project reports on the field and compressor station.

Although Western Canada accounts for the bulk of the fourth-quarter investment, as it would in any quarter of any year, the easternmost provinces have a few of their own projects on tap. AltaGas Limited (TSX:ALA) (Calgary) is preparing to begin construction on a $25 million natural gas pipeline and $25 million compressor station as part of its Alton Storage Project near Truro, Nova Scotia. The broader plans are to construct a series of natural gas-storage caverns to hold up to 1.4 billion cubic feet with 150 million standard cubic feet per day of injection capacity. For more information, see Industrial Info's project reports on the pipeline and compressor station.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.