Showing posts with label West Pac LNG Project. Show all posts
Showing posts with label West Pac LNG Project. Show all posts

Monday, October 08, 2007

Proposed Texada Island LNG plant finds welcome not as warm as expected


"Shouldn't a community have a say in whether or not a development, especially one which is potentially dangerous big time, be built in its backyard? " --Rafe Mair

The developers of an LNG plant that at one time was planned for Ridley Island, are finding that the road to development may be one lined with residents not particularly keen on it arriving in their backyards.

It was only a few months ago that West Pac packed up their presentations and studies , deciding that the future of LNG development was not in Prince Rupert but further south, but it would seem that terminal developers may have mis-judged the reception of those living around the Powell River area.

The opposition to the Texada Island project took its first steps there last week, as a public meeting was held to discuss the Safety aspects of the proposed terminal. The opposition is being led by none other that Rafe Mair, a former BC cabinet minister who went onto further fame as one of BC's most popular talk show hosts.

Mair was the chair at the meeting last week and has provided a bit of background on what the people in that part of the province think about the idea of these huge LNG ships transiting their congested waters think about the proposal.

Of interest is the lack of accountability by the political class of the province, with the exception of the local MLA, none of the opposition critics or cabinet ministers responded to their invitations, nor did any Federal representatives or potential representatives take in the public form.

It's interesting that the opposition over Texada plans has already begun to organize, when it was being proposed for Ridley Island there seemed to be less concern over safety, compared to the potential economic benefits for the area. We never actually got around to the actual safety investigation of the project locally, as the prospect of a much larger project further south rendered the Rupert plans to be put on a back shelf, to be looked at again perhaps some other day.

It will be interesting to see if the day when the "project might be revived ", now comes up much sooner than originally thought.
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We should watch how the project proceeds in the south, with such a prominent advocate against its development leading the way, the issue is sure to be kept on the front burner for quite a long time.

North coast residents should keep notes, just in case they decide that it's too hot politically mid island. It might be helpful to have the research done for us, just in case they decide that the North coast was a better choice after all.
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The residents there have been asking the questions that we never really had a forum for at the time, questions that are just as valid on the isolated north coast as they are in the more populated regions between Vancouver Island and the Sunshine coast.

Rafe Mair examined the issue of Texada on the Tyee website, providing an opinion piece for the news website that certainly doesn't bode well for the would be developers.

Texada Gas Project Raises Safety Fears
Scared islanders mad at no-show politicians.
By Rafe Mair
Published: October 8, 2007
TheTyee.ca

Last week I chaired a meeting in Powell River to protest the plan to build a large liquid natural gas (LNG) storing facility and gas-fired power generator on nearby Texada Island. This area is one of the great natural beauties of the province.

I, like many of you I'm sure, get bogged down in megawatts and the like, but suffice it to say that the Texada generating facility would become the single largest independent source of electricity in B.C. since Alcan's Kemano project was completed over 50 years ago. The rest of the gas would go into Terasen pipelines for other uses.

The LNG will be brought to the facility by huge tankers probably every week to 10 days. According to the literature, it's not so easy to transport gas as it is for coal and oil -- LNG requires either pipelines or huge special LNG tankers. To liquefy natural gas, you need to cool it down to about -160°C where it will then occupy 1/640 (0.15 per cent) of the original volume.

Upon reaching its destination, it then has to be converted back to a gas by passing the liquid through vaporizers to warm it. Then it is transported through pipelines as normal gas. About a third of the original energy in the gas is lost in this double-conversion process.

Thus, safety is not a theoretical question. In 2004 an LNG facility in Algeria killed 27 and in July of 2004 an explosion in Belgium from a facility cast debris four miles; 15 people were killed, and 120 injured -- many severely burned. It caused a billion dollars damage.

In 1944, in Cleveland Ohio, a liquid natural gas explosion incinerated a square mile. The explosion destroyed 79 houses, two factories, and 217 cars. Its heat reached 1000 degrees, killed 130 and injured 275. The spill that created this blast was approximately five per cent of the volume held by a modern LNG tanker. Though the safety of LNG facilities has no doubt much improved, this gives an idea of what happens if things go badly wrong.

No show politicians

Added to these concerns is the possibility of terrorism. If you were living next to a LNG plant and you knew that with relative ease there could be an explosion that would wipe out your community, how would you feel? If you live in Kerrisdale, the British Properties or Oak Bay, you have no such worries. Choose Texada Island and it would never be off your mind.

It's also interesting to speculate that because this LNG is not going to an expanded Burrard Thermal plant for the B.C. market -- a much cheaper option -- but is going into a pipeline terminating in the U.S., that the U.S. market is what's being targeted. This suspicion is fueled unto certainty by the fact that B.C. has plenty of gas for its own use. Thus, it would seem, Texada Island runs the risk, the Yankees get the gas.

The general feeling expressed at this meeting was frustration. The Powell River Regional District, thanks to recent amendments to the law, can no longer prevent a development supported by the Campbell government. The folks look to the Environmental Assessment Act for help and learn, as have the people living along the Sea-to-Sky highway, the residents of West Vancouver near Eagleridge, and the good folks in Delta, that the assessment, if any, is done after the deal is done and that the director (a Campbell appointment) has no power to stop a project. In fact Premier Campbell can refuse to allow an assessment to take place or restrict its powers.

There are several ways the Federal government could halt the project but the fact that the member of Parliament for the area, Blair Wilson, wasn't there, though invited, didn't inspire hope. The Tory candidate, John Weston, wasn't there -- considering how hard he's been campaigning, this is astonishing and can only call his political courage into question. Though the MLA, Nicholas Simons, was there, his colleagues, Environment critic Shane Simpson, Transportation critic Maurine Karagianis, Municipal Affairs critic Charlie Wyse and John Horgan, critic for Energy and Mines all gave it a pass.

On the Campbell government side, Richard Neufeld, the Minister of Energy, Mines and Petroleum Resources and the Environment Minister Barry Penner were both invited, and noted for their absence.

Not a NIMBY issue

The Campbell government evidently fears public questions and input. The Municipality of Delta will have a large truck highway built without their council being heard, much less approve, to serve a much expanded Deltaport they had no say in. These related projects will have a severe impact on air quality, on sensitive ecological areas including Burns Bog, and on the Agricultural Land Reserve, yet the Campbell government wasn't interested in what the people had to say. Even their usually loquacious Liberal MLA, Val Roddick, the self proclaimed protector of the ALR, was struck dumb.

Isn't there a principle of basic democracy involved here? Shouldn't a community have a say in whether or not a development, especially one which is potentially dangerous big time, be built in its backyard?

This Texada Island proposal is not a NIMBY issue such as having a half-way house in a neighbourhood might be. This high risk issue goes to the very soul of their entire community. Don't be fooled by the statement that the risk is an "acceptable one." If a risk is not restrained by any time limit, it's no longer a risk but a certainty waiting to happen.

If you live in Vancouver or Victoria you're probably saying "What the hell, this is progress! Can't stop having progress!"

Would you be saying that if an LNG plant was coming to where you and your family live? And therein lies the injustice. Large communities are spared high risk adventures. Communities like Powell River and Texada Island, without the population and political clout, must live with the risk without ever having had a fair chance to make their case.

Surely that can't be democracy even by British Columbia standards.

Related Tyee stories:

Oiling up the CoastHarper shrugs off 35-year ban on risky tanker traffic.
The Lure of Nuclear PowerIt grows with opposition to other options.
How to Curb B.C.'s High Risk Hunger for EnergySpreading pipelines, vulnerable to sabotage, fuel our growing appetite.

Rafe Mair writes a Monday column for The Tyee. You can find previous ones here.
To register for free to hear Rafe Live, Mair's new webcast, visit http://www.rafelive.com/.

Thursday, August 02, 2007

No LNG, No problem!


With a previously touted mega project now gone south (literally), it was time for a little local spin.

The Wednesday Daily News provided some local feedback on Tuesday’s surprise announcement (well surprising to the residents and taxpayers of Prince Rupert anyways), that for WestPac it was adios Rupert and we're Texada Island bound.

From Mayor Herb Pond, to Prince Rupert Port CEO Don Krusel, it seems that as far as the North coast could see, the changing economic landscape of the LNG world isn’t that big a deal.

Despite apparently having been in the loop about its potential demise for a number of months, it appears that at the time, the best approach to the potentially disappointing news was to say nothing.
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Now that the the ship had sailed so to speak, the mayor provided an intriguing anaylsis of the machinations of project development.

“In my view, they were absolutely terrific in not overselling or over-promising, so in turn we didn’t over-plan for it,” said Pond.

The Mayor also decided to the take the glass half full approach in his post mortem on the now dead project:

“It’s losing something we never had. We weren’t banking on that, and it wasn’t a key part of our recovery plan,” said Prince Rupert Mayor Herb Pond.

Over at the Port Corporation, it would appear that it’s a case of there’s always somebody else knocking on the door. Don Krusel CEO of the Port Corporation, while leaving a light on for the folks at WestPac, suggested that there has been significant interest by other industrial commercial developers in the Ridley Island property previously designated for WestPac.

And while it may hurt to be spurned, we apparently are ready to bounce back at a moment’s notice, at least according to the Mayor. He wrapped up his personal outlook on development for the Daily News on Wednesday, with a closing paragraph of classic oscillating oration.

“I’m a big believer that every project, if we’re going to get behind it, has got to be a project that really makes sense,” said Pond on the subject of future development. “There’s no point in having one that’s so far off the bubble it’s questionable before we even get started. I think Rupert can afford now to be looking at projects that really make sense for the operator and make sense for us, and we’ll build long-term strengths in the community.”

It’s an interesting choice of wording, which may find repeat use on a few of the previously touted local developments, which seem to have stalled over the last little while.

The full examination of the local reaction to the WestPac change of plans, was featured on the front page of Wednesday’s Daily News.


LNG TERMINAL LOSS PLAYED DOWN AS WESTPAC MOVES ON
By Kris Schumacher
The Daily News
Wednesday, August 01, 2007
Pages one and three

WestPac LNG Corporation confirmed yesterday that the $300 million liquefied natural gas transshipment terminal planned for Ridley Island will no longer be happening. At least not anytime soon.

Instead, the company has decided to locate a new LNG terminal and natural gas-fired power generation facility on Texada Island, which will provide the North and South Coast, Vancouver Island and the Lower Mainland with access to a natural gas supply.

"We were well advanced in our environmental assessment work, but rapidly changing global market conditions have forced us to delay the Ridley Island project and re-evaluate its economics," said Mark Butler, president of WestPac LNG. "This is the prudent business decision to make."

WestPac LNG cited rising costs of materials and skilled labour as major concerns for the project, as well as pre-existing infrastructure and closeness to established markets as reasons for their decision to build on Texada Island.

WestPac has advised the Prince Rupert Port Authority about the delay and circumstances of the review of the project, and Butler says they are confident the B.C. market for fuel and power generation will be developed in the North Coast when demand grows in the future.

"The Prince Rupert Port Authority recognizes and appreciates the economic factors driving WestPac's business decision to prioritize their proposed southern LNG facility development," said Prince Rupert Port Authority President and CEO Don Krusel. "We look forward to continuing to work with WestPac in exploring future development opportunities in Prince Rupert."

Krusel also noted that as a result of the overwhelming international attention being given to the new Fairview Container Terminal development, there has been significant interest by other industrial commercial developers in the Ridley Island property previously designated for WestPac.

"It's losing something we never had. We weren't banking on that, and it wasn't a key part of our recovery plan," said Prince Rupert Mayor Herb Pond.

"It was something we would have loved to have, and would have certainly been a bonus. We understood from the beginning, and the people from WestPac were always very honest with us about not overselling the project, and that it was a speculative project. They were serious about it, but there were a lot decision points that had to be reached."

The announcement is something that both the port authority and the city have known about for several months, but was only made officially during a press conference yesterday.
"In my view, they were absolutely terrific in not overselling or over-promising, so in turn we didn't over-plan for it," said Pond.

"Obviously, we would have loved to have that project go ahead. It would have been some good jobs, it would have brought some more shipping into the area, and the LNG may well have stimulated some other business activity."

While WestPac has pulled the plug on the LNG project at Ridley for now, the company is hopeful that future growth will permit them to revisit development in the city.

"We appreciate the support of the Prince Rupert Port Authority and residents of Prince Rupert," said Butler. "We hope residents understand our commitment to developing West Coast LNG transshipment facilities that are viable and provide economic benefits to all B.C. residents."
"I'm a big believer that every project, if we're going to get behind it, has got to be a project that really makes sense," said Pond on the subject of future development. "There's no point in having one that's so far off the bubble it's questionable before we even get started. I think Rupert can afford now to be looking at projects that really make sense for the operator and make sense for us, and we'll build long-term strengths in the community."

Tuesday, July 31, 2007

Up in a wee corner, news of a cancelled plan

They must have just made the deadline, when the story broke about the cancellation of the Ridley Island LNG terminal planned by WestPac for Prince Rupert.

The Daily News featured a small quarter column blurb on the front page, with the promise of an analysis of the decision to come in Wednesday's paper.

You can get a head start on your reading, by checking out our post to this blog made earlier today.

REGION LOSES HUGE LNG PROJECT, JOBS
Canadian Press
The Daily News
Tuesday, July 31, 2007
Page one

VANCOUVER (CP) - A $2 billion project to build a liquefied natural gas import terminal and gas-fired power plant in Prince Rupert is being moved.

Instead, the privately held company in charge of the project says it will build the facility on Texada Island, in the Georgia Strait between Vancouver Island and the mainland.

WestPac LNG president Mark Butler says the new project is aimed at providing a secure supply of natural gas to the province and will help B. C. reach its plans for electricity self-sufficiency.

Butler says the company had been working for two years to locate the project in Prince Rupert, but changed its mind because of the soaring cost of materials.

he said the company may consider the North Coast city as a satellite facility in the future.

Butler says officials in Prince Rupert were notified about the company's change of plans in February.

See tomorrow's Daily News for analysis of what this announcement means for the city.

Prince Rupert's LNG project shelved in favour of Texada Island plans


The planned construction of an LNG facility at Ridley Island has been cancelled in favour of a larger development on Texada Island. The Globe and Mail featured the latest developments from WestPac LNG Corp. of Calgary.

The cancellation of the LNG terminal marks the second time that a proposed terminal has been scuttled for the North Coast, back in the eighties Dome Petroleum had proposed a terminal for the Grassy point area of Port Simpson, but market forces at the time scuttled dome before it could launch its plans.

WestPac had originally set their sights on Prince Rupert for their liquefied natural gas import terminal , but apparently began to have second thoughts over the feasibility of the north coast design.

From there it seems they just decided to go elsewhere, now planning on bringing the big LNG ships to Texada Island , where they will also construct a new gas-fired 600-megawatt power plant. How that will be greeted by residents of the sunshine coast and gulf islands remains to be seen.

WestPac LNG president Mark Butler suggested that the Prince Rupert project might be revived some day as a satellite terminal, should the need arise, however for now, the development of the project in Prince Rupert would appear to be on hold for what may be a very long time.

Interestingly enough, he is quoted as saying that he told local officials of his plans as far back as February, though there doesn't seem to have been any local announcement about the potential abandonment of the project locally at the time.

"Mr. Butler held out the hope the Prince Rupert project might be revived some day as a satellite terminal, adding stakeholders in the city were informed of WestPac's changed plans in February."

The cancellation of the Rupert project, comes as plans to develop a similar project for Kitimat continue on towards construction. This archive piece in the Vancouver Sun, quotes city and economic development officials as still suggesting as late as June, that there was room for both projects.

Prince Rupert had trumpeted that the project would provide for 300 construction jobs and 30 full time jobs at the terminal upon its completion.

As it turns out, there may only be room for one terminal, and the construction and operational jobs will be in Kitimat.


B.C. LNG plant now slated for Texada Island
Canadian Press
Globe and Mail
July 31, 2007 at 4:06 PM EDT


VANCOUVER — A liquefied natural gas import terminal planned for the port of Prince Rupert has been cancelled in favour of a much larger project to be built further down the B.C. coast.
The new $2-billion project proposed by privately held WestPac LNG Corp. of Calgary includes an LNG import terminal and a new gas-fired 600-megawatt power plant on Texada Island.

WestPac LNG president Mark Butler said Tuesday the new project makes sense because it provides a secure supply of natural gas, helps meet the B.C. government's goal of electricity self-sufficiency and taps into existing nearby gas pipeline and electric transmission lines supplying Vancouver Island.

“We believe that the project which would combine both a liquefied natural gas receipt terminal with a power facility offers a number of benefits to the people of British Columbia,” he said.
The new project has forced WestPac to suspend plans for a $300-million import terminal at Ridley Island, in the port of Prince Rupert, Mr. Butler said.

He blamed the cancellation on soaring materials costs and the Prince Rupert project's now-unnecessary role as a primary terminal to serve future satellite LNG facilities on the coast.
Mr. Butler held out the hope the Prince Rupert project might be revived some day as a satellite terminal, adding stakeholders in the city were informed of WestPac's changed plans in February.

Texada Island, in Georgia Strait midway between Powell River on the mainland and Comox on Vancouver Island, was also chosen because of its relative remoteness from major urban centres.
Unlike many of the pastoral Gulf Islands, Mr. Butler said Texada, which has about 1,200 residents, has been an “industrial island” since before Confederation, home to quarries.

The WestPac complex, slated to open in 2013 if it wins regulatory approval, would take Asian LNG, regasify it and use it to fuel the power plant.

Additional gas could also be fed into the existing pipeline to supply Vancouver Island, Powell River and, with the flow reversed, the Vancouver area, Mr. Butler said. The approach doubles the existing line's capacity, he said.

“By optimizing the use of this line we have the ability to reduce the tolls that are charged to the citizens of British Columbia,” he said, adding this would effectively cut the cost of gas to consumers.

The power plant would help reduce B.C.'s growing electricity deficit, in line with the government's goal of self-sufficiency by 2016, Mr. Butler said.

It would provide firm electrical capacity to back up green-power projects now on the drawing board, mostly wind and water-powered plants, he said.

Former B.C. attorney general Geoff Plant, who sits on the WestPac board of directors, said the province's forecast demand for electricity outstrips the capacity for traditional types of power facilities to supply it.

“It won't be good enough to rely on the weather,” he said. “There will be a continuing and growing need for always-available dispatchable energy to be there when demand is high and when the wind isn't blowing , when the sun isn't shining and the rivers aren't full.”

The new plant would also help with plans by B.C. Hydro to replace the inefficient, dirtier Burrard thermal plant near Vancouver by 2014, he added.

Co-locating the LNG facility and power plant optimizes the energy efficiencies of both, Mr. Butler went on. Heat to regasify the LNG comes from the power plant and cooling air from the chilled gas increase electric turbine efficiency, reducing greenhouse gases.

The project would create about 300 jobs during construction and 80 jobs once the complex is in operation, Mr. Butler said.
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ARCHIVE: Fight for terminal
Michael Kane
Vancouver Sun
Tuesday, July 31, 2007
From Wednesday, June 7, 2006

Kitimat LNG Inc. has won a B.C. environmental assessment certificate that makes it the front -runner to build the first liquefied natural gas terminal on the North American West Coast.

The announcement came Tuesday as WestPac LNG Corp. formally began its proposal process for a $350-million LNG terminal near Prince Rupert.

Analysts say there is room for both terminals because natural gas imports will become increasingly necessary to meet North American demand.

The environmental certificate for Kitimat includes 243 commitments ranging from emission standards to protection for fish and wildlife, including the coastal tailed frog.

"It's a key milestone for our company and it really provides certainty for our project," Rosemary Boulton, president of Calgary-based Kitimat LNG, said in an interview.

"It's no longer if we are going to be built, it's when. It allows us to go out to the suppliers in the Pacific Basin ahead of 12 or 13 other projects proposed on the West Coast. It gives us first mover advantage."

Subject to federal environmental approval, which could come within four to six weeks, construction at Bish Cove, 14 km south of Kitimat, is due to begin in the fall and be completed in 2009.

The $500-million project is expected to create 700 construction jobs and 50 permanent jobs. In addition to a terminal to receive insulated containers carrying gas cooled to a liquid state by suppliers such as Australia, Malaysia and Indonesia, it will provide storage and re-gasification facilities, a three-kilometre access road and a 14-kilometre pipeline connection to the North American natural gas grid.

Boulton sees a local market, a regional market and a continental market for the terminal which will initially generate about 600 million cubic feet of natural gas daily, some of which could flow south into the Western States. Although it seems counterintuitive, some of the gas is likely to end up in northern Alberta where great quantities are used in oil sands processing.

In contrast, Calgary-based WestPac LNG is proposing to build a transshipment terminal on Ridley Island, an industrial park 11 km outside of Prince Rupert, to initially convert imports into about 350 million cubic feet of natural gas per day for the Northwest Coast, Vancouver Island and the Lower Mainland. It will be shipped out by barge, truck and rail, as well as linking to existing pipelines at the construction site. The project is expected to create at least 300 jobs during construction and about 30 full-time jobs once operational in 2011.

"There is room for both projects because they are based on different business plans and are targeting different end users," said Jim Rushton, manager of the Prince Rupert and Port Edward Economic Development Corp.

"Furthermore, by the time the projects come on line, offshore supplies of natural gas will be required to replace the decline in traditional supply currently satisfying North America's domestic need."

Mark Butler, president of WestPac, said that not only does the market have enough capacity to absorb gas from both projects but the Prince Rupert facility is designed to be expanded as demand grows.

Prince Rupert Mayor Herb Pond welcomed the WestPac proposal, saying a secure supply of natural gas will remove bottlenecks that have constrained growth in the past.
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Saturday, October 21, 2006

Proposed LNG operation to be a shipment hub

If the LNG plant proposed for Ridley Island ever gets up and running it won’t be relying on a pipeline to send its product off to its customers. The WestPac LNG project will not only tap into the existing pipeline system currently in place, but also rely on rail cars, truck transportation and smaller coastal barges and ships to move its product around the coast.

The transportation options were explained in a front page story in the Daily News on Thursday.

‘NO NEED FOR NEW LNG PIPELINE’
LNG facility to be built on Ridley will distribute by truck and rail
By Leanne Ritchie
The Daily News
Thursday, October 19, 2006
Page One

The WestPac LNG (Liquefied Natural Gas) proponents plan to feed the natural gas market in North America by trucks, ships and the existing pipeline system, said Stu Leeson, a vice-president with the company.

Speaking at the Northwest Corridor Development Corporation Conference, Leeson said there is a large coming demand for natural gas and their Prince Rupert project will help meet that demand.

“There is a tremendous amount of natural gas available in isolated areas where the demand for natural gas is not great. A lot of this gas was found when producers were looking for oil,” said Leeson.

“Our plan is to import LNG from various sources around the Asia Pacific region.”

WestPac LNG Corporation has proposed a $350 million dollar LNG receiving and transshipment terminal on Ridley Island. The project will include a new maritime berthing facility and up to four onshore LNG storage tanks. When fully developed, the facility will have the capacity to transship the natural gas equivalent of up to one billion cubic feet per day of LNG.

However, unlike the Kitimat LNG project, WestPac has no plans to build new pipelines to get natural gas to market.

Once LNG hits Prince Rupert, our plans are to transship it using smaller LNG cargos to markets along the West Coast,” he said.

This could occur using trucks, rail cars, barges and smaller ships.

In addition, they have located their project near existing pipeline systems.

“What we are trying to do is come up with a project that does not require anymore pipeline infrastructure.”

LNG is natural gas that has been liquefied by cooling it- 162 degrees Celsius. It’s easier to transport as a liquid because it significantly reduces its volume.

“What that allows you t do is transport it by ship very efficiently,” he said. For example, a standard LNG carrier carries 300 billion cubic feet of natural gas.

LNG is expected to become a crucial part of the North America natural gas supply in coming years. Because of a shortage of natural gas supplies in North America, prices are already spiraling upwards, he said.

“If you project out demand over the next 15 years, you see LNG has to become a critical part of our natural gas supply,” he said.

By 2025 LNG could provide as much as 12 per cent of North American gas supply.

In addition, some of the LNG comes in with a fairly high content of propanes and butanes.

“Those can be extracted and sold as a separate product,” he said.

Stu Leeson joined WestPac in August and he has worked in international LNG markets with some of the largest companies in the industry.

The Prince Rupert LNG terminal will create at least 300 jobs during construction and about 30 full time jobs once it becomes operational in 2011.