There's no doubt about it: after a 2 year lull, 2017 has been a year primarily filled with optimism for oil & gas in Canada, and indeed, across North America.
But what does 2018 have in store?
Below, check out 10 major oil and gas projects that are expected to commence in 2018.
Project 1: Trans Mountain Pipeline Expansion
"We expect 2018 to be a good year for Kinder Morgan Canada Limited businesses," said KML Chairman and CEO Steve Kean. He further indicated on Dec 4th however that “Unfortunately, the scope and pace of the permits and approvals received does not allow for significant additional construction to begin at this time.”
Accordingly, 2018 begins with the company working on permitting.
The 890,000 bbl/d expansion of Trans Mountain was previously expected to begin construction in September 2017, but permitting has been a key concern.
Earlier this month, a ruling yesterday by Canada’s federal regulator the National Energy Board (NEB), Kinder Morgan does not have to comply with two sections of bylaws in Burnaby, British Columbia.
Kinder Morgan has also warned of a potential delay to project completion of nine months (to September 2020) citing time required to file for, process and obtain necessary permits as well as regulatory approvals.
Potential mitigation measures require obtaining greater clarity early in 2018 with respect to key permits, approvals and judicial reviews and continued planning with contractors to assess options to start or accelerate work in certain areas, the company said.
Project 2: Inter Pipeline Heartland Petrochemical Complex
The Heartland Petrochemical Complex will be designed to convert locally sourced, low-cost propane into 525,000 tonnes per year of polypropylene, a high value, easy to transport plastic used in the manufacturing of a wide range of finished products.
Consisting of a propane dehydrogenation (PDH) and a polypropylene (PP) facility, the Heartland Petrochemical Complex will cost approximately $3.5 billion and will be located in Strathcona county, Alberta near Inter Pipeline’s existing Redwater Olefinic Fractionator.
Construction of the complex will continue in early 2018 with completion scheduled for late 2021.
Project 3: Cenovus Energy Christina Lake Phase G
Construction of the pilot project at Christina Lake began in 2000 and first production occurred two years later.
Our 100 percent-owned Christina Lake project is one of Cenovus' two producing oil sands operations in northeastern Alberta, and is located approximately 150 kilometres southeast of Fort McMurray. The oil at Christina Lake is about 375 metres underground. It's so deep that specialized technology is used to drill and pump it to the surface referred to as steam-assisted gravity drainage (SAGD).
The project is expected to operate for more than 30 years, and First oil is expected in the second half of 2019.
Project 4: Pembina North Central Liquids Hub
Pembina Pipeline Corporation announced in late November 2017 that its Board of Directors has approved approximately $400 million of new capital projects, as well as a capital program of approximately $1.3 billion for 2018. This includes the development of a new liquids hub just outside of Dawson Creek
This project is being advanced through Pembina's midstream limited partnership with Kohlberg Kravis Roberts & Co. L.P. ("Midstream Partnership"), in which the Company owns approximately a 46 percent interest.
The estimated capital cost for this project is $320 million ($150 million net to Pembina) and is expected to be placed into service in late 2018.
Project 5: Kirby North Phase 1
Canadian Natural Resources announced it will be restarting engineering and procurement activities for Kirby North, with a focus on reducing construction costs.
Phase 1 of the Kirby North project will use Steam Assisted Gravity Drainage to produce bitumen at an average rate of 40,000 barrels per day. This is the first of two planned phases.
Project was deferred due to low oil prices, after $700M in capital was invested. Project is restarting as of Nov 2016, with $650M remaining to be spent. First steam late 2019, first oil expected Q1 2020.
Project 6: Imperial Oil Kearl debottleneck
Imperial Oil says that in 2018 work will be underway on a $550-million debottleneck project at its Kearl oilsands mine.
Project 7: Commercializing of the Duvernay by Chevron
In Early november of 2017, Chevron Canada Limited announced it would be moving into development on a portion of its leaseholdings in the Kaybob Duvernay area of west-central Alberta.
The decision follows a successful three-year appraisal program by Chevron after saying the Duvurnay is “considered one of the most promising shale opportunities on the continent.”
Chevron has a net 70 percent operated interest in approximately 330,000 acres in the Duvernay formation near Fox Creek, approximately 260 km northwest of Edmonton.
The program will utilize long-term infrastructure development and service agreements with Pembina Pipeline Corporation and Keyera Corporation, with service expected to be available during the second half of 2019, Chevron says.
Project 8. AltaGas Ridley Export Terminal
On January 3, 2017 AltaGas announced a Final Investment Decision on the Ridley Island Propane Export Terminal. The Project is expected to be the first propane export terminal on Canada’s west coast.
The terminal will be designed to export 1.2 million tonnes of propane per year (roughly 40,000 bbls per day) by the first quarter of 2019.The estimated cost of the project is approximately $450 million to $500 million.
The project is expected to Lead to approximately 200 to 250 construction jobs and 40 to 50 permanent job opportunities once the facility is operational.
Project 9: Pembina Prince Rupert Terminal
The Prince Rupert Terminal will be located on Watson Island, British Columbia on lands leased from a wholly-owned subsidiary of the City of Prince Rupert.
Through site assessments and engagement with key stakeholders, the Company has confirmed Watson Island as the ideal location for the Project to be developed and has executed definitive commercial agreements with the City.
The Prince Rupert Terminal is expected to have a permitted capacity of approximately 25,000 barrels per day of LPG and is expected to be in service mid-2020, subject to Pembina receiving necessary regulatory and environmental approvals.
This Project is expected to provide significant economic benefits to the Prince Rupert area including 150 to 200 construction positions and, once operational, create between 20 to 30 full-time positions.
Project 10: Tidewater Midstream Montney liquids plant
In early November of 2017, Tidewater Midstream indicated it will proceed with a new gas plant near Grande Prairie, Alta. with processing capacity tailored for the region’s liquids-rich Montney natural gas production.
Located in the Pipestone area, the 100 MMcf/d sour gas plant will have acid gas injection and 20,000 bbls/d of NGL processing capability, as well as an extensive gathering pipeline network, the company says.
Based on the proposed construction schedule, operations are targeted to start up in mid-2019. Tidewater said that Phase One is estimated to cost approximately $210 million.
