Enbridge Northern Gateway Project - Métis National Council · The Northern Gateway Project ......
Transcript of Enbridge Northern Gateway Project - Métis National Council · The Northern Gateway Project ......
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Overview of the Northern Gateway Pipelines Project March 2013
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New Market Access Required to Earn Full Value
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Petroleum Landscape: Global Demand Growth Going Up
but USA Demand Going Down USA Supply Going Up Canada presently captive to USA Market and Pricing (99% of exports)
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Demand: *Through 2030 China and India will experience average annual growth > 3.5%
contrasted with the declining demand for oil in the United States
*International Energy Agency 2009
Market Diversification - Trends in Demand
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1.5
2.0
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2008 2015 2030
Volume (m
illion bpd)
Volume (m
illion m
3/d)
United States China & India
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Asia
$89
$102
$113
Alberta Light
WCS
Bakken Light Brent
Maya
Note: Pricing reflects 2012 year to date averages
Price Signals For Export Infrastructure Development
$88 $109
$75
$13
Natural Gas
Light Crude
Heavy Crude
$113 LLS
$2
$3
$96 WTI
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MERCATOR MAP FROM KARO
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Major Scope Items: 1,177 km crude oil and condensate pipelines
Marine terminal
$6.4 billion project
Targeting 2018 in-service
Pipe Design:
525,000 bpd crude oil
193,000 bpd condensate
Kitimat Terminal:
5 million barrels of storage
2 berths
VLCC ready
The Northern Gateway Project Key Elements
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Northern Gateway - Benefits for Canada
Canada will be the largest Project beneficiary
British Columbia and Alberta are also significant beneficiaries
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Benefits for British Columbia & Alberta
4100 person-years Direct On-Site Employment
1400 person-years Direct On-Site Employment
Total $ 830 Million
Total $232 Million
BC
AB
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Why Is The Project Controversial? Ideological opposition to oil sands
First oil pipeline to the northern BC coast (lack of local familiarity)
Unsettled BC land claims and concerns regarding impact on Aboriginal rights and traditional way of life
River Crossings & Marine Route
Crossing several significant salmon rivers
Legacy of Exxon Valdez
Legacy of Queen of the North
Imperfect Pipeline Industry track record
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Enbridge Safety & Integrity
Objective is to be top quartile (goal = best) Integrity management Leak detection Incident response Worker occupational safety Public safety / environmental protection
Recent pipeline integrity activity 2,500 integrity digs
138 inline inspection tool runs
$2.9B integrity investment since 2002
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Evolution in Pipeline Technology & Safety
Route and watercourse crossing selection
Stringent steel chemistry & strength testing Fusion bond epoxy coated pipe used & inspected Every weld will be inspected during construction Cathodic protection prevents corrosion during operation Enhanced protection: thicker steel, shut-off valves Pipe hydrostatically tested 24/7 monitoring from control center Routine aerial reconnaissance of pipeline ROW Increased monitoring with in-line inspection tools
Control center
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Existing Tanker Routes & Tanker Exclusion Zone
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Marine Measures: exceed regulation & current practice
Regulatory Requirements: Double hulled ships / multi compartment BC pilots (plus redundant nav-aid systems) Emergency preparedness and response planning
Enhancements to Safety: Tanker route simulation Improved navigational aids, new radar Vetting of ships and crew Weather monitoring criteria for ship transit Reduced vessel speeds in marine channels Tug escort operations (tethered towing) Closed loading and containment booms
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Broad Aboriginal & Community Consultation
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Portfolio of Aboriginal Benefits (short, med & long term)
Equity ownership 10% (incl. MNBC & MNA) Structured to access credit
Procurement $300 Million targeted (P/L & Stations) Based on Enbridge experience Depends on capacity
Qualified and competitive
Employment & Training 15% construction target Work with prime contractors
& Unions
Tax income on Reserve land base
Marine & Tunnel Benefits (~ $200 Million+ / -)
Aggregate value ~ $1 Billion
2011 Aboriginal Business Summit
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Public regulatory review (Joint Review Panel) led by:
Economic & technical feasibility, socio-economic & environmental protection Q: Is this project in the overall interest of Canadians? Conditions?
Canadian Environmental Assessment Agency (CEAA) high-quality environmental assessments in support of sustainable development
Q: Can this project be undertaken in an environmentally sound manner? Conditions?
Additional agencies, including:
Transport Canada Department of Fisheries and Oceans Indian and Northern Affairs Natural Resources
Rigorous and Open Public Review Process
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Regulatory Timeline
Regulatory Application
Filed (May 2010)
NGP In-Service
Date 2018+
gatewaypanel.review-examen.gc.ca
Community Hearings
cont. 2013
The above timeline is illustrative and subject to change
Construction
JRP community review of Issues
and required additional
information
Community Hearings
(started Jan 10, 2012)
Final Hearings (started
Sept 2012)
Information Requests
(Aug 25 to Nov, 2011)
Regulatory Decision / Detailed
Engineering
Deadline to Register for Oral Stmts Oct 6, 2011
Deadline for Letters of Comment
Aug 31, 2012
JRP is a quasi-judicial, independent tribunal
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Path Forward Our View
Public: Increasing appetite for fact and evidence-based discussion
Enbridge & Industry: Increasing focus on earning social license
JRP recommendation Dec. 2013
Conditional approval of Project i.e. with conditions promoting reconciliation (~ mid 2014)
As JRP hearings wrap up, engagement focus will increasingly turn to benefits
Scope for industry collaboration e.g. in training-to -employment initiatives 18
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Thank You
Questions?
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Auxiliary Slides If Time Allows
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Exxon Valdez Then and Now - Prevention
Prevention Valdez, AK (1989)
Valdez, AK (2009)
Northern Gateway
Tanker escort tugs Ocean rescue tug Double hull tankers Vessel monitoring Emergency preparedness planning Regulatory oversight Health, safety and environment programs
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Exxon Valdez Then and Now - Response
Response Valdez, AK (1989)
Valdez, AK (2009)
Northern Gateway
Multiple equipment locations Equipment readily available Oil recovery and storage capacity Trained responders Protection of sensitive areas Managed response Communications infrastructure Practice drills
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