Robyn Allan - Posted: Feb 1st, 2014 - Vancouver Observer
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Kinder Morgan Canada President Ian Anderson told analysts in Houston, Texas last week that the Canadian economy is losing big because of limited access to markets—a problem he says his $5.4 billion Trans Mountain expansion will help solve once the project receives regulatory endorsement and Harper Cabinet approval. He expects that could be as early as mid-2015 with a late 2017 in service date for the new pipeline.
Explaining the drive behind oil producer demand for BC west coast access, Mr. Anderson told his audience “tight capacity’s going to be out of the Western Canadian Sedimentary Basin for some time…and as a result of limited access to global markets we continue to see discounts between Brent, WTI and Canadian Mixed Sweet blends… the differentials Canadian producers see adds up to about $50 million a day in lost revenues and profits to the Canadian economy.”
What Mr. Anderson didn’t do is connect the dots. If he’s right, and new, heavy oil pipelines like Trans Mountain raise oil prices and remove the discount, there will be a huge wake-up call for consumers at the pumps. We all know that when crude oil prices are higher at the refinery gate—which is exactly what would have to take place if Canadian producers are paid more for their oil—Canadian refiners faced with these higher costs pass them onto consumers, otherwise their profits fall.
Fifty million a day in “lost” producer revenues translates to an average of $25 per barrel. If crude prices rise by that amount, when refineries pass it on it would mean roughly 15 cents a litre at the gas station.
Read more: http://www.vancouverobserver.com/environment/trans-mountain-will-raise-pump-prices-15-cents-litre-according-kinder-morgan-president
by Korie Marshall – The Rocky Mountain Goat
Kinder Morgan will require additional power, especially in the North Thompson valley from Kamloops to their pumping station at Rearguard Falls, if their proposed Trans Mountain Pipeline expansion is approved. But they won’t say yet how they will get it.
Kinder Morgan estimates the expansion would require an additional 16.7 MW of power, mainly to supply the new pump stations between Rearguard (just north of Valemount) and Kamloops. Borealis Geopower’s proposed geothermal electricity project is estimated to produce 5-10 MW of power.
A statement from Kinder Morgan says they submitted an initial application to BC Hydro in June 2012, outlining their anticipated power requirements for the expansion. In fall 2012, they provided funding to BC Hydro for a scoping study to determine the infrastructure that would be needed to provide that power, and the results were expected by the end of 2013. After the scoping study, BC Hydro would need to do a more detailed study to determine the exact engineering requirements and capital costs. Kinder Morgan is responsible for costs of all project-related applications and studies.
The statement says Kinder Morgan understands that additional power infrastructure will be required in the North Thompson. It also says they are aware some community residents have expressed concerns about power supply in the area, and that BC Hydro has addressed the issue with local governments.
Kinder Morgan anticipates the required infrastructure will be a combination of additions and upgrades to BC Hydro’s current system. Kinder Morgan is not participating directly in any new power projects, but will be responsible to BC Hydro for the costs directly related to the expansion, and BC Hydro will decide how to recover those costs from Kinder Morgan.
A spokesperson for BC Hydro says they will not release the scoping study publicly because it contains confidential customer information. Repeated requests to Kinder Morgan asking if they would be releasing the study have received no response.
read more: http://www.therockymountaingoat.com/2014/02/where-will-trans-mountain-get-their-power/
A series of public information sessions will be held in Langley, Maple Ridge, Abbotsford and Chilliwack to inform Fraser Valley residents about the National Energy Board (NEB) review of Kinder Morgan's Trans Mountain Pipeline proposal. The sessions are organized by ForestEthics Advocacy and the PIPE UP Network.
Kinder Morgan is proposing to build a new export pipeline to carry diluted bitumen to offshore markets. The proposal is to ship an additional 590,000 barrels of bitumen through BC. The National Energy Board can approve or reject applications to make written comment or be an intervenor. The application process is not user-friendly and the NEB has not provided public in-person information sessions about the process. Many people find the on-line information confusing. These sessions will help fill that gap and make it easier for people to voice their opinions.
Information sessions are scheduled for the following locations and dates:
• Maple Ridge - February 3, Municipal Council Chambers, 11995 Haney Place, Maple
Ridge, BC V2X 6A9 7-9:00 p.m.
• Chilliwack - February 4, University of the Fraser Valley, Chilliwack. Room A1354,
45190 Caen Avenue Chilliwack BC V2R 0N3, 7-9:00 p.m.
• Abbotsford - February 5, University of the Fraser Valley, Abbotsford, Room B133,
33844 King Road, Abbotsford, BC, V2S 7M8 7-9:00 p.m.
• Langley - February 6, Ft. Langley Community Hall, 9167 Glover Road, Fort Langley
BC 6-8:00 p.m. (The hall will be open from 2:00 on for people who wish to drop in. Liz
McDowell of CRED will be there from 3:30-5:00 for businesses).
For more information please contact:
Sven Biggs, email@example.com, 778-882-8354
Michael Hale, firstname.lastname@example.org, 604-799-3391