Companies operating in the Sundre area have announced plans to get more Alberta oil and gas out to export markets.
Plains Midstream Canada (PMC) intends to double the amount of crude oil it can pipe from its Sundre terminal north to Edmonton and quintuple the amount heading from Sundre south to the border.
PMC’s Sundre terminal and pump station is a primary hub for its Rangeland pipeline — a gathering system that transports crude and condensate.
“The Rangeland expansion provides a timely, efficient and cost-effective solution providing much needed market access and flexibility," said Tyler Rimbey, PMC’s commercial executive vice-president in a release issued last month. "We remain focused on leveraging our existing systems in creative ways to meet the growing needs of our customers."
There will be no significant changes to the existing pipeline, confirmed PMC media relations staff.
It is anticipated that the increased capacity will be achieved through upgrades to existing pump stations on the Rangeland pipeline system.
Combined, the expansion will increase Rangeland's current light crude oil capacity to approximately 200,000 barrels per day.
Service between Edmonton and Sundre will be expanded from 50,000 barrels per day to approximately 100,000 barrels per day and, additionally, will be capable of bi-directional service.
Sundre, south to the border, will be expanded from its current 20,000 barrels per day up to 100,000 barrels per day.
The increased capacity will provide incremental takeaway capacity for the East Duvernay and other Rangeland-area production, as well as south egress access out of the Edmonton market hub.
Subject to receiving sufficient commitments from shippers and necessary permits and regulatory approvals, the expansion will be staged into service during the last half of 2019 with full capacity realized in 2021.
Shell Caroline sold
Pieridae Energy’s plan to pipe Alberta gas through existing pipelines to the East Coast for sales overseas will take longer — pegged at 2023 or 2024.
The company announced in June that it had bought all of Shell’s midstream and upstream assets in the southern Alberta foothills for $190 million.
The sale includes Shell Caroline and the Waterton and Jumping Pound sour gas plants along with the gas fields which feed them.
The independent, publicly traded liquid natural gas (LNG) company, is focused on developing a $10-billion Goldboro LNG Project and export facility off Canada’s East Coast, supplied with Canadian natural gas that the company owns.
The aquisition of Shell’s Alberta assets demonstrates progress on the project, according to Pieridae’s chief executive officer, Alfred Sorensen.
“Not only does this deal help us secure the remaining conventional natural gas supply needed for the first train of the Goldboro LNG project, it makes Pieridae a major player in the Alberta midstream and upstream industry,” he said in a press release.
The Goldboro LNG project, an LNG processing facility with storage tanks and marine works will be located at the Goldboro Industrial Park in Guysborough County, N. S.
North American natural gas supplies will be transported to Goldboro, N. S., using existing pipelines and exported by ship to international markets.
Pieridae has aleady signed a 20-year sales agreement with German utility Uniper worth approximately $35 billion, the largest export contract in Canadian history, the company says.
“This initiative will reinvigorate dormant natural gas reserves in southern Alberta, potentially creating 1,300 jobs alone in 2020 as drilling operations begin, along with field and office work,” said Sorensen.
In Nova Scotia, he added, the Goldboro LNG facility will be the largest project ever built, employing 3,500 men and women during construction, 30 per cent of the province’s entire unionized workforce.
The German government is supportive of the project, declaring it eligible in principle for up to US$4.5 billion in loan guarantees, according to the company.
The Shell asset purchase, according to the company, brought the company a step closer to making its final investment decision on the project.
The company will retain all site-based Shell employees and some Calgary-based Shell employees who predominantly support the Foothills assets.
