Canada

Natural Gas All Around, But None for Nova Scotians

While exports to the United States drive the expanding natural gas sector on Canada’s East Coast, it remains unclear whether there will be a domestic distribution grid in Nova Scotia. The Nova Scotia utility commission has set a deadline of Jan. 14, 2002, to receive applications for a second run at building a gas distribution system in the province. A hearing has been called for Nov. 19 on issues raised by the withdrawal of Sempra Atlantic Gas from the project, including what to do with C$50 million (US$30 million) in installations that the company was able to construct in the Halifax-Dartmouth area.

October 8, 2001

Industry Briefs

BP Canada late Tuesday extinguished the fire on the remaining well at its Fort Saskatchewan plant by setting a plug downhole in the well to isolate the cavern that stores ethane at the natural gas liquids (NGL) facility. The plant fire started following an explosion Aug. 26, which caused two wells to catch fire (see Daily GPI, Sept. 4). BP said it was sending emergency crews home and would bring in a recovery team to return operations to normal. The BP team now will focus on what caused the incident and will bring all pipeline systems and operations up by the end of the week. Most of the systems affected by the fire are now fully or partially operational, BP said, with the Peace and AEGS systems operating at 100%; Co-Ed running at 80%; and Cochin operating at 50% volumes.

September 6, 2001

NEB Expects Pipeline Progress Report In October

Canada’s National Energy Board said last week that the chairs of the boards and agencies responsible for assessing and regulating Northwest Territories energy developments will submit their first progress report in early October, followed by a draft cooperation plan for public comment detailing proposals to construct a northern gas pipeline through the NWT.

August 27, 2001

NEB Expects Pipeline Progress Report In October

Canada’s National Energy Board said this week that the chairs of the boards and agencies responsible for assessing and regulating Northwest Territories energy developments will submit their first progress report in early October, followed by a draft cooperation plan for public comment detailing proposals to construct a northern gas pipeline through the NWT.

August 23, 2001

Industry Briefs

Canada’s National Energy Board has established a mediation process for the resolution of landowner objections during detailed route hearings for oil and natural gas pipelines and power lines. The board sent out for comment in January 2001 a draft of its proposed Mediation Practice Direction to various landowners, landowner representatives and industry stakeholders across the country. It also sought comments and suggestions for using alternative dispute resolution tools for other types of applications. The board has now reviewed and analyzed comments received and, in light of the overall support indicated by many of the respondents, has decided to implement a voluntary mediation process at the detailed route stage of its proceedings. This will provide an alternative method for landowners and companies to resolve disputes over the detailed routes of pipelines and power lines. The board has revised the draft Mediation Practice Direction and incorporated many of the suggestions made by the participants, and will make the process available, if it is requested. For a copy of the draft Mediation Practice Direction, visit the NEB’s web site at http://www.neb.gc.ca/pubs/pdmdro.pdf .

August 16, 2001

El Paso Completes Acquisition of Velvet Exploration

An El Paso Corp. subsidiary, El Paso Oil & Gas Canada Acquisition Inc., has completed the acquisition of Canadian independent Velvet Exploration Ltd., picking up approximately 41.9 million common shares, which equates to 96.7% of Velvet shares outstanding, with its offer of C$8.15 per share. The offer closed at the end of July. Cost of the acquisition, including US$52 million in debt, is estimated at about US$280 million.

August 2, 2001

Industry Brief

White Plains, NY-based U.S. Energy Systems Inc. on Tuesday reported that it is acquiring Trigen Energy Canada Co., an indirect subsidiary of Trigen Energy Corp., in a transaction totaling $18 million. The acquisition includes two district energy systems, one located in Charlottetown, PE and the other in London, ON. The Charlottetown District Energy System provides heating and other energy services to 102 customer buildings under long-term contracts, including provincial and privately owned buildings in the downtown area. U.S. Energy Systems said that energy is produced at Charlottetown’s renewable biomass and energy- from-waste facilities. The London District Energy System features a combined heat and power plant that provides electricity, heating and cooling. Energy services are provided to 71 customer buildings. Electricity is also sold to the municipal utility, London Hydro. U.S. Energy Systems is an independent producer of power, generated close to the customer. It develops, owns and operates combined heat and power plants and energy plants utilizing renewable fuels in North America.

June 13, 2001

NEB Sets Public Comments on Grizzly Extension

Canada’s National Energy Board has begun the public comment period on the environmental aspects of an application by Westcoast Energy Inc. to extend the Grizzly Raw Gas Transmission System and to construct the Weejay Lateral in British Columbia and Alberta. The comment period ends June 27.

May 21, 2001

Third Western Canada Pipeline Expansion Proposed

Where’s that scorecard? It’s never around when you need it. By our count there are now three new proposals on the Canadian side to upgrade service through southern British Columbia and into the U.S. Pacific Northwest. Westcoast Energy entered the Northwest expansion lists last week with an announcement of an open season to run through the end of May for more capacity on its Southern Mainline and Westcoast Alberta line to accommodate additional volumes from supply areas in British Columbia, Alberta and the Northwest Territories.

April 23, 2001

Third Western Canada Pipeline Expansion Proposed

Where’s that scorecard? It’s never around when you need it. By our count there are now three new proposals on the Canadian side to upgrade service through southern British Columbia and into the U.S. Pacific Northwest. Westcoast Energy entered the Northwest expansion lists last week with an announcement of an open season to run through the end of May for more capacity on its Southern Mainline and Westcoast Alberta line to accommodate additional volumes from supply areas in British Columbia, Alberta and the Northwest Territories.

April 23, 2001