Page 8 - NorthAmOil Week 37 2021
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NorthAmOil PIPELINES & TRANSPORT NorthAmOil
Suncor partners with indigenous groups
to buy Northern Courier stake
ALBERTA CANADA’S Suncor Energy announced this to the Alberta Investment Management Corp.
week that it had signed agreements with eight (AIMCo).
indigenous communities to acquire all of TC The Astisiy partners will generate revenues
Energy’s 15% equity interest in the Northern through competitive tolls from long-term trans-
Courier Pipeline Limited Partnership in Alberta. portation and terminalling services agreements
The indigenous communities include three supporting the pipeline, with Suncor noting
First Nations and five Métis groups. Together that this would happen regardless of the price of
with Suncor, they will take ownership of the crude. The partnership is expected to generate
Northern Courier stake, which is estimated to gross revenues of about CAD16mn ($13mn) per
be worth around CAD1.3bn ($1.0bn). Together, year.
the partners will be known as Astisiy Limited The indigenous groups’ participation in the
Partnership. transaction was funded by non-recourse financ-
The pipeline connects Suncor’s Fort Hills oil ing that was supported by a loan guarantee of up
sands project and its East Tank Farm operations. to CAD40mn ($32mn) from the Alberta Indig-
Upon completion of the purchase by Astisiy, enous Opportunities Corp.
which is anticipated in the fourth quarter of The deal comes as oil and gas companies
2021, the pipeline will be operated by Suncor. have been increasingly partnering with Cana-
Suncor said in a September 16 statement that da’s indigenous groups on a variety of projects.
it had obtained the rights to purchase all of TC Governments and companies have a legal duty to
Energy’s stake in the pipeline in 2019, with the consult and accommodate First Nations before
collaboration with indigenous groups in mind. proceeding with resource projects affecting their
At the time, it made the move as part of North- territories. Bringing the groups in as direct part-
ern Courier’s execution of long-term, non-re- ners can make a significant difference to levels of
course financing of CAD1bn ($790mn) and support – or, conversely, opposition – for a pro-
TC Energy’s sale of its remaining 85% interest ject among local communities.
NGTL updates Canadian regulator
on West Path expansion
WESTERN NOVA Gas Transmission Ltd (NGTL), a subsid- Delivery 2022 and Foothills Zone 8 West Path
CANADA iary of Canada’s TC Energy, has told regulators Delivery 2023.
that shipper contracts still support the latest phase The entire programme is worth CAD1.2bn
of its West Path expansion plans despite increas- ($949mn), and will bring sanctioned expan-
ingly ambitious emissions reduction goals. sions of NGTL and Foothills infrastructure to
This comes after as the Canada Energy Reg- CAD10bn ($7.9bn).
ulator (CER) has begun hearings on the NGTL According to the CER, the NGTL West Path
West Path Delivery 2023 construction applica- Delivery 2023 project includes the construction
tion. NGTL tested the gas market with a June and operation of roughly 40.1 km of 48-inch
pipeline capacity auction. No shippers accepted (1,219-mm) pipeline across Alberta, in three
an offer to drop current contracts and allow a sections. If the project is approved, construction
reduction in the size and cost of the expansion will begin in the third quarter of 2023 and the
project, it told the regulator. pipeline will enter service in November of that
“Climate change laws, policies and regula- year.
tions are one set of factors,” NGTL told the CER NGTL anticipates flows on its system to rise
about the evolving environmental rules. The by 19% from 13.9bn cubic feet (394mn cubic
company said it was also taking into account metres) per day to 16.6 bcf (470 mcm) per day
“other factors such as contracts, producer activ- by 2026. The added volumes are expected to
ity and observed flow trends”. originate from unconventional gas formations in
NGTL West Path Delivery 2023 is one of four north-eastern British Columbia and north-west-
projects that together comprise the West Path ern Alberta.
Delivery Programme, along with Foothills Zone Earlier phases of the NGTL expansion are
8 West Path Delivery 2022, NGTL West Path currently under construction.
P8 www. NEWSBASE .com Week 37 16•September•2021
