Page 12 - NorthAmOil Week 31

NorthAmOil
NEWS IN BRIEF
NorthAmOil
Inter Pipeline announces
new conventional oil
pipeline project
Inter Pipeline announced today that it
has received commercial support for the construction of a $100mn pipeline connection between its Bow River and Central Alberta pipeline systems. e new pipeline, called the Viking Connector, will link various grades of light crude oil from the Viking and Mannville formations in east-central Alberta to the Edmonton market hub.
“ e Viking Connector enables us to cost e ectively leverage our extensive regional pipeline network and provide customers with superior market access,” said Christian Bayle, president and chief executive o cer of Inter Pipeline. “Producers in the Alberta Viking and surrounding plays are currently limited to pipeline services to the Hardisty hub or costly trucking alternatives. is connection will provide economical access to the Edmonton market hub which historically has been a premium market for Alberta light oil products, a clear bene t for producers.”
is $100mn investment is the second phase of a multi-phased development program for the Central Alberta pipeline system. is phase includes the construction of 75km of eight-inch diameter pipeline that will connect Inter Pipeline’s rone Station on the Bow River pipeline system to the Central Alberta pipeline system in the Stettler area.
In addition, Inter Pipeline will complete upgrades to the rone Station, which includes recon guring existing tank storage and expanding truck o oading capacity. Construction will begin immediately and is expected to be completed in the rst half of 2020.
When completed, Inter Pipeline forecasts throughput volume of 10,000 to 15,000 barrels per day on the Viking Connector, with approximately one third of forecast shipments
currently secured for a 10-year term. Additional term transportation agreements are under negotiation and contracted commitment levels may rise by the in-service date.
INTER PIPELINE, August 07, 2019
DOWNSTREAM
BESIX Canada to build an
LNG terminal in British
Columbia
BESIX Canada, together with its joint venture partner Vancouver Pile Driving (Vanpile), will build an LNG export facility in Kitimat, in
the North Coast region of British Columbia, Canada. Via the Douglas Channel, one the principal ords of British Columbia, the port is part of the Northwest Corridor, connecting North America to the Paci c Rim.
e LNG Berth Marine Structure contract was awarded to BESIX Canada and Van Pile by the JGC-Fluor BC LNG Joint Venture (JFJV). Once completed, the LNG Terminal will be maintained by JFJV and operated by LNG Canada, a joint venture between Shell, PETRONAS, PetroChina, Mitsubishi and KOGAS.
Works include the construction of a 500-meter-long quay wall, an LNG platform and all associated mooring and berthing structures. e works also involve the construction of scour protection, roadways, foundations for buildings, electrical works as well as the installation of marine equipment such as automated navigation aids.
Construction will start in 2019 with the removal of the existing facilities, shoreline protection and current infrastructure. e works will be completed in 2021.
BESIX CANADA, August 08, 2019
Chart Industries and Stabilis Energy invest in small-scale LNG North American growth
Chart Industries announced a strategic investment in Stabilis Energy of up to $7mn for up to 9% of common equity. e transaction is scheduled to close within the next thirty days subject to both parties meeting certain closing conditions.
e actual investment and ownership will be determined by an agreed upon formula at closing.
Small-scale LNG is a key aspect of the global LNG infrastructure buildout, as these smaller liquefaction plants serve speci c uses such as marine bunkering, fuel for over the road transport, gas-LDC peak storage and power generation. Stabilis and Chart together built a 100,000 LNG gallon per day lique er in Texas, with the intended purpose to service multiple end markets, including energy, industrial, mining, and Mexican exports. Chart supplied the liquefaction train, storage, gas pre-treatment, and truck loading facilities, which contributed to the record production levels of the plant.
“We are pleased to announce this strategic investment in Stabilis Energy,” said Jill Evanko, Chief Executive O cer of Chart. “We look forward to providing equipment and process to Stabilis and other customers as they
expand in the small-scale and utility-scale LNG market. We expect over $650mn of opportunity in this market for our products in the next three years.”
“Stabilis welcomes Chart Industries as a shareholder,” commented James Reddinger, President and Chief Executive O cer of Stabilis. “As a global market leader in LNG production equipment and process systems, we appreciate Chart’s con dence in us. is transaction better positions Stabilis to pursue our North American small-scale LNG growth strategy, which is currently focused on plant development opportunities in the United States and Mexico.”
Reddinger continued: “Chart’s investment will increase our publicly traded oat
and total shares outstanding, thereby helping Stabilis meet its NASDAQ listing requirements. Furthermore, the investment will reduce our nancial leverage and give
us a stronger balance sheet to support our growth plans.”
CHART INDUSTRIES, August 05, 2019
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Week 31 08•August•2019