Top 5 Projects Currently Underway in Alberta’s Industrial Heartland
Despite upsets and uncertainty in Alberta’s economy, there are some massive construction projects currently underway in the province. When these projects are completed they are expected to generate more revenue for Alberta.
Alberta Carbon Trunk Line
The ACTL is a 240 km pipeline that will collect CO2 from industrial emitters in Alberta and transport it to reservoirs for secure storage. The capture sites are located in the Agrium Fertilizer Plant and the North West Sturgeon Refinery located in Sturgeon County. The Enhanced Oil Recovery Site (EOR) is located in Clive, Alberta. Over 14.6 million tonnes of CO2 per year will be compressed and stored which is the equivalent of removing 2.6 million cars off the road annually. The stored CO2 will then be injected into depleted oil reservoirs which will result in over 1 billion barrels of oil. It will be the largest carbon capture and storage project in the world when completed. The project is being completed by Enhance Energy Inc. and will cost close to $1 billion. The pipeline was approved in 2011 and work at Agrium is currently underway. Work on facilities at the North West Refinery will occur in conjunction with refinery construction.
Atco Energy Solutions’ Salt Cavern Storage
Atco Energy in partnership with Petrogas Energy Corp. is developing four salt caverns that are capable of storing 400,000 cubic meters of propane, butane, and ethylene. The facility is located in an underground salt layer located below the ATCO Heartland Energy Centre in Fort Saskatchewan. Construction on the salt caverns began in 2014 and is expected to be completed by the second quarter of 2017. The cost of the project is $200 million and there is the potential for further development to upwards of 40 additional salt caverns.
Enbridge Norlite Pipeline Project
This project involves the construction of a 24-inch diameter diluent pipeline which originates in Strathcona County at Enbridge’s Stonefell Terminal and terminates at Enbridge’s Fort McMurray South Facility near Fort McMurray. There is also a transfer line to Suncor’s East Tank Farm. The 446 km pipeline will be capable of shipping diluent (a product used to make heavy oil lighter). The project was started in the summer of 2015 and should be completed by the spring of 2017. The estimated capital cost of the project is $1.4 billion.
North West Refining is a 50% owner of the North West Redwater Partnership. Canadian Natural Upgrading Limited owns the other 50%. This partnership is responsible for building the Sturgeon Refinery which is the first refinery to be built in Canada in three decades. Phase One which will process bitumen and produce diesel fuel will be completed in 2017. Approximately 80,000 barrels per day will be processed and available to world markets. There will be a total of three identical phases constructed by the end of the project. The total cost of the project is projected at $8.5 billion.
Keyera NGL Expansion
Keyera Corp. operates one of the largest independent mainstream energy companies in Canada. A project is underway to expand the existing facility’s fractionation capacity of natural gas liquids from 30,000 barrels per day to 65,000 barrels per day. Located in Fort Saskatchewan, Keyera is able to mitigate supply-demand fluctuations by having the capacity to store liquids in slow months while providing increased volumes as the demand goes up. The estimated capital cost for this project is $220 million.