October 22, 2012
Half billion dollar agreement paves way for oilsands facility
Williams Energy Canada has signed a deal with Canadian Natural Resources Limited (CNRL) to invest about half a billion dollars in the construction of a liquids extraction plant at an oilsands facility near Fort McMurray, Alberta.
“This new agreement will build on the unique expertise and large-scale infrastructure we’ve built in Canada,” said David Chappell, president of Williams Energy Canada.
“The scale that we are building here – with fractionation, distribution and storage – gives us the ability to generate significant long-term incremental value from our operations.”
Under agreement, Williams plans to build a new liquids extraction plant and supporting facilities at CNRL’s Horizon oilsands upgrader.
The company also plans to build an extension of its Boreal Pipeline that will enable transportation of the Natural Gas Liquids (NGL)/olefins mixture to its expanded Redwater facility outside of Edmonton.
Williams will capture and process a rich NGL/olefins mixture that would normally be burned by CNRL.
In exchange for the NGLs and olefins transferred to Williams, CNRL will receive methane in return, which will be used as fuel for its Horizon operations.
The NGL/olefins mixture will be fractionated at Williams’ Redwater facilities into an ethane/ethylene mix, propane, polymer grade propylene, normal butane, an alkylation feed and condensate.
Williams expects to recover 12,000 barrels per day (bpd)of the NGL/olefins by mid-2015 and about 15,000 bpd by 2018.
The new plant and pipeline expansion will allow Williams to extract, transport, fractionate, own and market NGLs and olefins recovered from offgas.
The total capital expenditures expected between 2012-2104 for the project is $500 million to $600 million. Once full operating capacity is achieved at Horizon, processing the offgas is expected to reduce emissions of carbon dioxide (CO2) by an average of about 200,000 tonnes per year.
It is expected to reduce emissions of sulphur dioxide (SO2) by an average of about 2,000 tonnes per year.
JOC NEWS SERVICE
|MOST POPULAR STORIES|
|TODAY’S TOP CONSTRUCTION PROJECTS|
These projects have been selected from 316 projects with a total value of $2,787,806,637 that Reed Construction Data Building Reports reported on Friday.
$1,000,000,000 Edmonton AB Prebid
$220,000,000 Medicine Hat AB Negotiated
$50,000,000 Calgary AB Prebid
- Construction Site Arson
- Journal of Commerce Update for the week of May 20th, 2013
- Industry reacts to surprise B.C. Liberal majority
- Calgary Airport Tunnel
- Worker at centre of union sign up allegations speaks out
- Calgary program aims to get more people into the trades
- Midrise in the City
- Veterans battle barriers into the trades
- Government makes changes to online tendering
- SNC-Lavalin maintains that new bribery allegations have been resolved
- B.C. faces a tough battle for top talent
- Keyano College building state of the art training facility
- Essential skills can play a vital role in an apprentices' success
- Taking a closer look at the risks in green building for contractors
- Colleges conduct construction research in addition to teaching
- Skills Canada BC Competition
- Lower Mainland high school trades program is unique
- Construction Learning Forum aims to educate
- High schools looking for more industry participation
- Industrial construction supervisor program takes off
- Saskatchewan bill passed
- Edmonton garners support for regional cash for arena
- Feds pledge $5 million for Vimy memorial
- VIDEO: Competing in the trades
- Multi-employer approach needed in apprenticeships
- New Perspective
- ACEC’s input helps develop global engineering guidelines
- Clerk of works position gives peace of mind on projects
- World Trade Center developer’s plan for a 926-foot tower moving ahead
- Call for action after MOL says workers are responsible for their own safety
- Cold spring and weak construction hurt Deere’s 2013 predictions
- CanBIM reschedule June session
- More green roofs top Toronto buildings
- Witness recants testimony in Montreal corruption case
|ALEX’S ECONOMICS BLOG|
Reed Construction Data Canada’s Chief Economist Alex Carrick discusses current developments in the North American economic environment with emphasis on the construction industry.
- An Overview of Prices and Sales in the Diverging U.S. and Canadian Housing Markets (April 25, 2013)
- Canada’s Precarious Dependence on the Commodity Price Super-Cycle (April 22, 2013)
- Twenty major upcoming residential and transportation terminal construction projects - April 2013 (April 15, 2013)