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Researched by Industrial Info Resources (Sugar Land, Texas)--Growing demand for product from the Canadian oil sands is driving much of the project growth in Western Canada this year, notably for energy-related infrastructure. Industrial Info is tracking more than $27 billion in active projects set to begin construction in Western Canada in the second half of the year, including nearly $15 billion in Oil & Gas Industry projects.
Click on the image at right for a graph detailing planned second-half 2017 project kickoffs in the Western Canadian region, by industry.
The Western Canadian region includes the provinces of Alberta, British Columbia, Manitoba and Saskatchewan, and the Northwest, Nunavut and Yukon territories.
Particularly relevant is the growth in oil and gas transmission. Earlier this week, the Canadian Association of Petroleum Producers (CAPP) announced in its 2017 Crude Oil Forecast, Markets and Transportation report that Canada will need enough pipeline capacity in the next 13 years to transport an additional 1.3 million barrels per day (BBL/d) of oil sands product to markets across North America.
The highest-profile transmission project, Kinder Morgan Incorporated's (NYSE:KMI) (Houston, Texas) massive Trans Mountain Pipeline Expansion project, recently earned a vote of support from the Canadian Parliament, which called it economically beneficial and environmentally safe. But other major transmission projects are moving forward in Western Canada, including a $400 million portion of TransCanada Corporation's (NYSE:TRP) (Calgary, Alberta) $5 billion Prince Rupert Gas Transmission pipeline; and Pembina Pipeline Corporation's (NYSE:PBA) (Calgary) $250 million, fifth-phase pipeline expansion near Fox Creek, Alberta.
The new portion of the TransCanada's project is expected to carry 2 billion cubic feet per day of natural gas, eventually expandable to 3.6 billion, roughly 466 miles from near Hudson's Hope, British Columbia, to Port Edward, British Columbia; the Pembina expansion is expected to transport up to 260,000 BBL/d of crude oil roughly 59 miles in the Fox Creek area. For more details, see Industrial Info's reports on the Prince Rupert, Fox Creek and Trans Mountain projects. For more information on pipelines in Western Canada, see March 21, 2017, article - TransCanada Pushes for North Montney Pipeline Approval Ahead of Pacific Northwest LNG Decision.
The CAPP estimates overall Canadian oil production will reach 5.1 million barrels per day (BBL/d) in 2030, largely due to a 53% growth in forecasted oil sands production. One of the biggest projects set to begin construction this year is Brion Energy Corporation's (Calgary, Alberta) $1.05 billion, second-phase expansion at MacKay River bitumen-production facility near Fort McMurray, Alberta. The project, which is the first of four phases, is expected to process 40,000 BBL/d of bitumen, using steam-assisted gravity drainage (SAGD) technology. The full, four-phase project is expected to produce 150,000 BBL/d. For more information, see Industrial Info's project report and June 9, 2017, article - Canada Invites China to Invest in Alberta's Oil Sands, as $12 Billion in Projects Set to Kick Off by End of Year.
Alberta alone is host to nearly $4.5 billion in second-half 2017 kickoffs related to exploration and production, mostly related to the oil sands. These include Cenovus Energy Incorporated's (NYSE:CVE) (Calgary) $1 billion Narrows Lake bitumen production plant and Harvest Operations Corporation's (Calgary) $500 million Black Gold bitumen production plant, both near Fort McMurray. The plants will produce 45,000 and 10,000 BBL/d, respectively, and both will use SAGD technology. Both projects are in their permitting phases, where plenty of factors could delay, increase or reduce spending. For more information, see Industrial Info's project reports on the Narrows Lake and Black Gold facilities.
British Columbia, meanwhile, is becoming a hotspot for oil and gas terminals development. AltaGas Limited (TSX:ALA) (Calgary, Alberta) and Royal Vopak N.V.'s (Netherlands) $500 million Ridley Island propane terminal, the first propane export terminal on Canada's western coast, recently began its pre-construction phase and is expected to ship 1.2 million metric tons per year to overseas markets. For more information, see Industrial Info's project report and May 15, 2017, article - First Canadian West Coast Propane Export Project on Schedule, Gets JV Investment from Vopak.
The westernmost province also is host to a key component of Kinder Morgan's Trans Mountain Pipeline project: a $75 million in additions at a crude-oil export terminal in Burnaby. Kinder Morgan expects to add more than 4 million barrels of storage space for multiple tankers. For more information, see Industrial Info's project report and May 30, 2017, article - Kinder Morgan Announces Final Investment Decision on Trans Mountain Pipeline Pending IPO Outcome.
None of this is to say that renewable sources are not represented in Western Canada's second-half project kickoffs. SaskPower (Regina, Saskatchewan) is preparing to begin construction on its $630 million Tazi Twe Hydro Station in Stony Rapids, Saskatchewan. The run-of-river hydroelectric plant is expected to generate 50 MW from a pair of fixed-blade Kaplan turbine generators. And Electricite de France S.A.'s (Paris, France) Canadian subsidiary is at work on its $140 million Vulcan solar power station in Carmangay, Alberta, which is expected to generate 55 MW from 297,000 photovoltaic panels. For more information, see Industrial Info's project reports on the Tazi Twe and Vulcan projects.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
The Western Canadian region includes the provinces of Alberta, British Columbia, Manitoba and Saskatchewan, and the Northwest, Nunavut and Yukon territories.
Particularly relevant is the growth in oil and gas transmission. Earlier this week, the Canadian Association of Petroleum Producers (CAPP) announced in its 2017 Crude Oil Forecast, Markets and Transportation report that Canada will need enough pipeline capacity in the next 13 years to transport an additional 1.3 million barrels per day (BBL/d) of oil sands product to markets across North America.
The highest-profile transmission project, Kinder Morgan Incorporated's (NYSE:KMI) (Houston, Texas) massive Trans Mountain Pipeline Expansion project, recently earned a vote of support from the Canadian Parliament, which called it economically beneficial and environmentally safe. But other major transmission projects are moving forward in Western Canada, including a $400 million portion of TransCanada Corporation's (NYSE:TRP) (Calgary, Alberta) $5 billion Prince Rupert Gas Transmission pipeline; and Pembina Pipeline Corporation's (NYSE:PBA) (Calgary) $250 million, fifth-phase pipeline expansion near Fox Creek, Alberta.
The new portion of the TransCanada's project is expected to carry 2 billion cubic feet per day of natural gas, eventually expandable to 3.6 billion, roughly 466 miles from near Hudson's Hope, British Columbia, to Port Edward, British Columbia; the Pembina expansion is expected to transport up to 260,000 BBL/d of crude oil roughly 59 miles in the Fox Creek area. For more details, see Industrial Info's reports on the Prince Rupert, Fox Creek and Trans Mountain projects. For more information on pipelines in Western Canada, see March 21, 2017, article - TransCanada Pushes for North Montney Pipeline Approval Ahead of Pacific Northwest LNG Decision.
The CAPP estimates overall Canadian oil production will reach 5.1 million barrels per day (BBL/d) in 2030, largely due to a 53% growth in forecasted oil sands production. One of the biggest projects set to begin construction this year is Brion Energy Corporation's (Calgary, Alberta) $1.05 billion, second-phase expansion at MacKay River bitumen-production facility near Fort McMurray, Alberta. The project, which is the first of four phases, is expected to process 40,000 BBL/d of bitumen, using steam-assisted gravity drainage (SAGD) technology. The full, four-phase project is expected to produce 150,000 BBL/d. For more information, see Industrial Info's project report and June 9, 2017, article - Canada Invites China to Invest in Alberta's Oil Sands, as $12 Billion in Projects Set to Kick Off by End of Year.
Alberta alone is host to nearly $4.5 billion in second-half 2017 kickoffs related to exploration and production, mostly related to the oil sands. These include Cenovus Energy Incorporated's (NYSE:CVE) (Calgary) $1 billion Narrows Lake bitumen production plant and Harvest Operations Corporation's (Calgary) $500 million Black Gold bitumen production plant, both near Fort McMurray. The plants will produce 45,000 and 10,000 BBL/d, respectively, and both will use SAGD technology. Both projects are in their permitting phases, where plenty of factors could delay, increase or reduce spending. For more information, see Industrial Info's project reports on the Narrows Lake and Black Gold facilities.
British Columbia, meanwhile, is becoming a hotspot for oil and gas terminals development. AltaGas Limited (TSX:ALA) (Calgary, Alberta) and Royal Vopak N.V.'s (Netherlands) $500 million Ridley Island propane terminal, the first propane export terminal on Canada's western coast, recently began its pre-construction phase and is expected to ship 1.2 million metric tons per year to overseas markets. For more information, see Industrial Info's project report and May 15, 2017, article - First Canadian West Coast Propane Export Project on Schedule, Gets JV Investment from Vopak.
The westernmost province also is host to a key component of Kinder Morgan's Trans Mountain Pipeline project: a $75 million in additions at a crude-oil export terminal in Burnaby. Kinder Morgan expects to add more than 4 million barrels of storage space for multiple tankers. For more information, see Industrial Info's project report and May 30, 2017, article - Kinder Morgan Announces Final Investment Decision on Trans Mountain Pipeline Pending IPO Outcome.
None of this is to say that renewable sources are not represented in Western Canada's second-half project kickoffs. SaskPower (Regina, Saskatchewan) is preparing to begin construction on its $630 million Tazi Twe Hydro Station in Stony Rapids, Saskatchewan. The run-of-river hydroelectric plant is expected to generate 50 MW from a pair of fixed-blade Kaplan turbine generators. And Electricite de France S.A.'s (Paris, France) Canadian subsidiary is at work on its $140 million Vulcan solar power station in Carmangay, Alberta, which is expected to generate 55 MW from 297,000 photovoltaic panels. For more information, see Industrial Info's project reports on the Tazi Twe and Vulcan projects.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
