Cover photo: Port Edward (centre) just south of Prince Rupert (at top left) with Lelu Island right of centre.
A WESTERN CANADA ENERGY CORRIDOR
Mike Priaro, P.Eng.
First uploaded Mar. 23, 2016. Last updated Apr.10, 2016.
An energy corridor through northern British Columbia and Alberta containing the proposed Eagle Spirit oil pipeline, the proposed Prince Rupert Gas Transmission pipeline, a potential natural gas liquids pipeline, and electric power transmission lines east and west from proposed Peace River hydro-electric projects creates a highly-efficient integrated energy corridor that would dramatically reduce the costs and environmental footprint of energy development in western Canada.
But is co-ordination of just this western portion of a coast-to-coast, nation-building, integrated energy/transportation corridor simply too much for Canadians?
"Don't let them tell you it can't be done!"
An efficient, integrated, western Canada energy corridor from the oil sands near Fort McMurray in Alberta to the proposed Site C Dam and other hydro-electric projects on the Peace River in British Columbia and then to LNG and oil marine terminals near Prince Rupert makes a great deal of sense from business, economic, environmental, and First Nations perspectives.
The proposed Site C hydro-electric project dam on the Peace River near Fort St. John and the B.C.-Alberta border is located almost exactly halfway between Prince Rupert on the west coast and Fort McMurray in the interior.
Schematic of Western Canada Integrated Energy Corridor to Tide Water. Source; Mike Priaro.
An integrated energy corridor would transmit clean hydro-electric power from the proposed Site C and other Peace River hydro-electric rojects west to power proposed natural gas liquefaction plants and LNG and oil marine terminals near Prince Rupert, and east to oil sands operations near Fort McMurray.
The Prince Rupert area is sheltered and ice-free year-round with deep, natural harbours, and is widely regarded as the safest location for oil and LNG marine terminals on Canada’s west coast. There are no significant hazards such as narrow channels to navigate resulting in unobstructed entry to the high seas and to the northern Pacific Great Circle shipping route which provides the shortest trade route between North America and markets in the Asia-Pacific region.
Clean Hydro-electric Power for the Oil Sands
Electric power transmission lines installed in the same pipeline right-of-way (ROW) to the oil sands could supply clean hydro-electric power to displace some of the 3.2 billion cfd of natural gas used in the oil sands for bitumen extraction, upgrading, and refining operations and thereby reduce excess greenhouse gas (GHG) emissions.
Clean hydro-power for the oil sands would have to compete with the low-cost natural gas currently used to provide steam and co-generated electric power in oil sands operations. However, the natural gas that is displaced by hydro-electric power could be shipped to Prince Rupert and exported as LNG instead of burned – literally and figuratively – to produce bitumen thereby reducing GHG emissions and adding value to natural gas.
Hydro-electric power from Site C, which will provide 1,100 megawatts (MW) of capacity, and existing hydro-electric power projects on the Peace River currently totaling 3,424 MW, would also allow the option to partially- and/or fully-upgrade Alberta bitumen near Fort St. John before the oil pipeline crosses much of British Columbia, or back in Alberta at Fort McMurray, without incurring excess GHG emissions.
In Alberta, ATCO Power says the Peace River could generate 1,500 MW of hydro-lectric power while a minimally invasive run-of-river project on the Slave River could provide 1,800 MW with another 1,500 MW from a more traditional facility on the Athabasca River near Fort McMurray. Alberta's current generating capacity is about 15,000 MW.
Potential Propane/LPG/Condensate Pipeline
Recently, AltaGas LPG applied to the NEB for a licence to export 14.6 million bbl/year of propane from a marine export terminal near Prince Rupert and from railway crossings in Alberta and British Columbia. The term of the licence is 25-years with a maximum total volume of 419.75 million bbl.
The AltaGas export application is a result of the recent reversal of the Cochin LPG and NGL pipeline from Alberta to Windsor, Ontario which imported some of the diluent required to export raw bitumen as dilbit. Since then, there have been times when propane actually had negative value at producer outlets in Alberta because of loss of market access. That is, some producers actually had to pay to have their propane removed. See: https://www.linkedin.com/pulse/propane-value-evaporates-mike-priaro or; https://www.behance.net/gallery/26845435/PROPANE-VALUE-EVAPORATES-THANKS-TO-COCHIN-REVERSAL
A volume of 14.6 million bbl/year is 40,000 bbl/d which approaches the economic threshold for a pipeline dedicated to propane. Adding volumes of LPG and NGL’s - and condensate if Albertans succeed in eliminating the use of diluent to export raw bitumen as dilbit would likely make such a pipeline economic. Such a pipeline would likely be relatively small diameter and easily and inexpensively installed at the same time as a new natural gas pipeline and a new crude oil line like Eagle Spirit.
An Integrated Western Canada Energy/Transportation Corridor
However, Canadians must embrace an even bigger vision and expand the concept of an energy corridor to include fibre-optic cables, connections between electric power transmission lines and other hydro-electric and clean energy sources, light service industries, and upgraded highways and railways providing transportation and access to forestry, mining and recreation. That would result in an integrated western Canada energy/transportation corridor.
Running power lines and other services along the same ROW as the Prince Rupert Gas Transmission (PRGT) and Eagle Spirit pipelines dramatically reduces construction costs and minimizes the environmental footprint when compared to the clearing and construction of multiple ROWs through the rugged interior and coastal mountain ranges of British Columbia.
Unfortunately, the current proposal for the PRGT pipeline routes it south of the Williston Lake reservoir while the current proposal for the Eagle Spirit oil pipeline has it routed north of the Williston Lake reservoir. Note the actual length of the route chosen by TransCanada Corp. for the PRGT pipeline, from a point near Hudson’s Hope, just west of Fort. St. John, to Prince Rupe, is about 900 km.
However, there is no First Nations consensus on the PRGT pipeline proposal while Eagle Spirit has obtained all First Nation approvals for the oil pipeline route north of Williston Lake according to Calvin Helin, Chairman and President of Eagle Spirit Energy. Helin says First Nations approval of a gas pipeline, and by extension a propane/LPG/NGL//condensate pipeline in the same ROW as the Eagle Spirit oil pipeline, may be possible.
Surveyed routing of the proposed Eagle Spirit oil pipelne. Courtesy; Eagle Spirit Energy.
The map above shows for the first time the proposed routing of the one million bbl/d Eagle Spirit oil pipeline from Fort McMurray in Alberta to the Prince Rupert area in British Columbia.
There would be large efficiencies and cost reductions in manpower, operations, management, infrastructure, emergency response capabilities, and a reduced environmental footprint, if oil, natural gas, and LPG pipelines all terminalled near Grassy Point.
Finally, why run the PRGT pipeline a long distance underwater to an LNG plant and marine terminal at the ecologically-disputed Lelu Island location when a better location may be available at Grassy Point?
Proposed Route of PRGT gas pipeline to Lelu Island. Source; TransCanada Corp.
Benefits of an Integrated Western Canada Energy/Transportation Corridor
A multi-pipeline energy corridor containing electric power transmission lines and other services results in savings of billions of dollars in construction and operating costs. It reduces the environmental footprint compared to multiple ROWs for individual projects and allows the use of hydro-electric power to power LNG plants and displace natural gas to reduce excess GHG emissions from the oil sands.
There would be significant economic benefit to the province of British Columbia both from the revenue of hydro-electric power generation at the Site C project and from the provision of adequate residential, commercial, and industrial power for increased development in northern British Columbia and Alberta. Natural gas pipelines to LNG plants and marine terminals near Prince Rupert will also encourage development of shale gas resources in northern British Columbia and Alberta.
In addition there would be significant benefits to First Nations through their involvement designing, constructing, operating, and managing the energy corridor and associated pipelines and facilities, monitoring its environmental effects, and participating in emergency response plans with oversight, assistance, and training from the energy industry. There must be direct. long-term economic benefit to First Nations from such pipelines and facilities on First Nations lands.
An integrated energy/transportation corridor to west coast tide-water requires the leadership and support of the federal government under Prime Minister Justin Trudeau and the federal Ministers of Transport, Natural Resources, and Environment, the governments of Premiers Clark and Notley of British Columbia and Alberta, First Nations, affected local municipalities, BC Hydro, private industry in the form of TransCanada. Corp., PETRONAS (sponsor of the PRGT pipeline), AltaGas Ltd., and Eagle Spirit Energy, as well as support from British Columbia and Alberta utilities and oil and gas producers and shippers.
But I wonder if the vision and co-ordination of just this western portion of a coast-to-coast, nation-building, integrated energy/transportation corridor is simply too much for Canadians?
Mike Priaro, P.Eng.
Calgary, Alberta
403-281-2156
In addition there would be significant benefits to First Nations through their involvement designing, constructing, operating, and managing the energy corridor and associated pipelines and facilities, monitoring its environmental effects, and participating in emergency response plans with oversight, assistance, and training from the energy industry. There must be direct. long-term economic benefit to First Nations from such pipelines and facilities on First Nations lands.
An integrated energy/transportation corridor to west coast tide-water requires the leadership and support of the federal government under Prime Minister Justin Trudeau and the federal Ministers of Transport, Natural Resources, and Environment, the governments of Premiers Clark and Notley of British Columbia and Alberta, First Nations, affected local municipalities, BC Hydro, private industry in the form of TransCanada. Corp., PETRONAS (sponsor of the PRGT pipeline), AltaGas Ltd., and Eagle Spirit Energy, as well as support from British Columbia and Alberta utilities and oil and gas producers and shippers.
But I wonder if the vision and co-ordination of just this western portion of a coast-to-coast, nation-building, integrated energy/transportation corridor is simply too much for Canadians?
Mike Priaro, P.Eng.
Calgary, Alberta
403-281-2156
ADDENDUM
An integrated energy/transportation corridor meets all five conditions as set out in the British Columbia government's heavy oil policy paper, Requirements for British Columbia to Consider Support for Heavy Oil Pipelines to be met before the government of Premier Christy Clark will support a heavy oil pipeline across British Columbia:
Successful completion of the environmental review process.
An integrated western Canada energy corridor eliminates the environmental and ecological footprint of multiple right-of-ways through British Columbia. The Prince Rupert area provides the safest access to the high seas and the least risk of an oil spill of any location for marine terminals on Canada’s west coast.
World-leading marine oil spill response, prevention and recovery systems for B.C.'s coastline and ocean to manage and mitigate the risks and costs of heavy oil pipelines and shipments.
A single right-of-way for oil, natural gas, and natural gas liquids pipelines mitigates the risk and costs of pipelines. A single port handling oil, natural gas, and gas liquids shipments provides the economies, efficiencies, and concentrations of manpower and equipment to facilitate creation of world-class marine spill response, prevention, and recovery systems.
World-leading practices for land oil spill prevention, response and recovery systems to manage and mitigate the risks and costs of heavy oil pipelines
A single integrated energy corridor for oil, natural gas, and gas liquids shipments provides the economies, efficiencies, and concentrations of manpower and equipment to facilitate creation of world-class land spill response, prevention, and recovery systems.
Legal requirements regarding Aboriginal and treaty rights are addressed, and First Nations are provided with the opportunities, information and resources necessary to participate in and benefit from a heavy-oil project
All First Nations have approved the proposed Eagle Spirit pipeline route.
British Columbia receives a fair share of the fiscal and economic benefits of a proposed heavy oil project that reflects the level, degree and nature of the risk borne by the province, the environment and taxpayers
There would be significant economic benefit to the province of British Columbia both from the revenue of hydro-electric power generation at the Site C project and from the provision of adequate residential, commercial, and industrial hydro-electric power for increased development in northern British Columbia and Alberta.
Natural gas pipelines through northern Alberta and British Columbiato LNG plants and a marine terminal near Prince Rupert will also encourage development of shale gas resources in northern British Columbia and Alberta.
British Columbia also benefits by minimizing the environmental and ecological footprints of multiple rights-of-way.
An integrated energy/transportation corridor can provide fibre-optic cables, connections between electric power transmission lines and other hydro-electric and clean energy sources, light service industries, and upgraded highways and railways providing transportation and access to forestry, mining and recreation.
Author Bio
"Mike Priaro, B.Eng.Sc. (Chem. Eng.), U.W.O. '76, P.Eng., Lifetime Member Association of Professional Engineers and Geoscientists of Alberta (APEGA), worked in facilities, production, operations and reservoir engineering, as engineering consultant, area superintendent, and engineering management in Alberta's oil patch for 25 years for companies such as Amoco and PetroCanada.”
“He increased oil production from the historic Turner Valley oilfield and brought in under-balanced drilling and completion technology to drill out, complete, and test several of the highest producing gas wells ever on mainland Canada at Ladyfern. He co-authored ‘Advanced Fracturing Fluids Improve Well Economics’ in Schlumberger's Oilfield Review and developed the course material for the ‘Advanced Production Engineering’ course at Southern Alberta Institute of Technology.”
"Mike has presented his work to Canada’s House Committee on Natural Resources in Ottawa and had work published by the Macdonald-Laurier Institute in the March and April, 2014 and February, 2015 editions of Inside Policy magazine, by U.S. energy industry websites such as RBN Energy, in the July 17, 2014 edition of the Oil and Gas Journal, in Petroleum Technology Quarterly, Q3 2014, and in several columns in the Calgary Herald, Edmonton Journal, and Montreal Gazette.”
“Mike has no formal connection to any oil company, environmental organization, think tank, labour organization, lobbying or special interest group, academia, or to provincial or federal politics.”
“In 2015 Mike was retained by Alberta Sulphur Research Limited to conduct "A Preliminary Engineering, Economic, and Environmental Evaluation of ASRL's Partial Upgrading Process" which he presented to 80 representatives of ASRL's member companies. ASRL partial upgrading subsequently obtained Alberta government funding and industry support. On Jan. 29, 2016, the Alberta Government made partial upgrading a priority based on its Royalty Review Panel’s recommendations. An ASRL partial upgrading flow test pilot is scheduled to start up in Mar., 2016 at CANMET/NRCan’s research facility in Devon, AB."
“Mike is the author of “A ‘Canada-First’ Canadian Energy Strategy” (see https://www.behance.net/portfolio/editor?project_id=5808629) and is available for special projects, and speaking engagements.”
