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inside saturn 1
One year ago this month, Shell unveiled its new Saturn 1 Plant to company executives during a commissioning tour at the new facility. The state-of-the-art facility possesses groundbreaking techniques in energy supply, water use and emissions reduction. “50 years from now, this Groundbirch facility will still be producing gas, supplying it to North America and Asia.”
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Fort St. John, B.C.
250.785.7907 Toll Free: 1-888-830-9909
Dealer for WESTERN STAR • DOEPKER • TREMCAR • PACESETTER SALES • PARTS • SERVICE Contact: Wayne Doll • Sales Consultant Contact: Darcy Hofstrand • Sales Consultant Cell: 250.261.9560 Cell: 250.264.7203 www.jamesws.com
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PNN
NUMBERS
The following figures were taken from the stories in this issue of Pipeline News North.
11.80: The Alberta-B.C. Natural Gas Discount is at its lowest level in more than two years. Chart on Page 5. $3:60: The AECO “C” spot price, the Alberta gas trading price, has nearly doubled in the past year, to $4.13/Gj. Chart on Page 5. $15.53: The Japan LNG Import Price continues to trend downward. Chart on Page 5. 21: The number of LNG export projects that have been proposed in Alberta and British Columbia. Story on Page 5. $325M: The cost of a gas plant to be built about 100 kilometres north of Fort St. John. Story on Page 6.
500,000: The capacity in bbls/day of Pembina Pipeline Corporation’s previously announced $2-billion Phase III pipeline expansion. Story on Page 10.
$82,500: What TransCanada’s Prince Rupert Gas Transmission project donated to UNBC so 24 students can take an occupational health and safety officer course. Story on Page 18.
$250M: What Fort Hills Energy L.P. awarded Técnicas Reunidas for the cogeneration plant at the Fort Hills oilsands mining project. Story on Page 11.
2: The number of 20,000-horsepower natural gas turbines at Shell’s Saturn 1 Gas Plant. Photo essay on Page 20.
2 years: The number of years in which it will take Royal Dutch Shell plc to decide whether to develop an LNG export terminal on Canada’s West Coast. Story on Page 12.
200 million: The volume of gas per day in cubic feet that Shell’s Saturn 1 Gas Plant will produce per day. Photo essay on Page 20.
1st: City council approved a company’s proposal to build a liquefied natural gas processing and storage facility within the Dawson Creek city limits. It is the first in the province. Story on Page 14.
$850,000: The amount of money raised by the Oil Rig Rumble for Mobember in 2011. Story on Page 26.
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21st LNG project 5 proposed
16 Trudeau slammed for LNG comments 18 PIPELINE COMPANY FUNDS EDUCATION
$325M gas plant to 6 be built north of FSJ
20 Inside Saturn 1
PEMBINA ADVANCES 10 PHASEIII OF PIPELINE
14 CITY HAS SOME CONCERNS ON ALR 15 Huge camp with Merrick pipeline
Chart: Oil & gas tenders in 5 B.C. & Alberta
14 Dawson Creek home to B.C.’s first LNG plant
26 ARE YOU GOING TO DO MOVEMBER THIS YEAR?
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Técnicas Reunidas gets 11 $250 Million Contract Audit Shows Operational 11 Improvements, says AER
28 Oil & gas conference in FN cancelled 29 ITA TO RECRUIT B.C. LNG WORKERS 30 IS B.C.’S TOURISM INDUSTRY THREATENED?
SHELL AIMS FOR FID 13 IN ‘TWO YEARS’
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Squamish defers vote on 13 Woodfibre LNG LNG conference 13 was a success
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Published monthly by Glacier Ventures International Corp. Pipeline News North is politically independent and a member of the B.C. Press Council. The Pipeline News North retains sole copyright of advertising, news stories and photography produced by staff. Reproduction is prohibited without written consent of the editor.
PIPELINE NEWS NORTH •
the charts
#oilsands
The alberta-B.C. lng discount
December 2013 to September 2014
5
The so-called AlbertaB.C. Natural Gas Discount (ABCD) is the difference in price that a BTU of natural gas costs in Tokyo compared to Alberta. Sources: Natural Gas Exchange, Bloomberg
Alberta gas price The AECO “C” spot price, the Alberta gas trading price, nearly doubled in the past year to $4.13/Gj but fell to $3.60 in August. Source: Natural Gas Exchange December 2013 to September 2014
Japan gas price
Another LNG project proposed on West Coast from the daily oil bulleten
proposed liquefaction terminal that is expected to be located in the Prince Rupert area.
Another LNG export project has been publicly announced. The proponent, Orca LNG Ltd., filed a licence with the National Energy Board to export gas from a yet-tobe-determined site near Prince Rupert, British Columbia. Orca LNG applied for a 25-year term, starting on the date of first export. Subject to the annual tolerance, the quantity of natural gas that may be exported in any consecutive 12-month period would be 1.17 tcf, which corresponds to roughly 24 million tonnes per annum (mtpa). The point of export would be at the outlet of the loading arm of a
Pending NEB export decisions On Sept. 4, Orca LNG Ltd applied to liquefy and export 24 MTPA of LNG from in the vicinity of Prince Rupert. On Aug. 28, Cedar LNG Export Development, a liquefied natural gas export development company owned by the Haisla Nation, filed three applications to liquefy and export LNG from a point in the Northern Douglas Channel, in the District of Kitimat, for 142 Bcf, 284 Bcf and 284 Bcf, respectively. See LNG on Page 25
The Japan LNG Import Price continues to trend downward after reaching all-time highs last year. Source: World Bank
March 2012 through September 2014
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U.S. gas price Left, the Henry Hub Natural Gas Spot Price (dollars per Million Btu) traded at $4.10 in the first week of December and began August at $3.77. Source: U.S. Energy Information Agency
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PNN William Julian Regional Manager 250-785-5631 wjulian at pipelinenewsnorth.ca
Matt Lamers Managing Editor 250-271-7064 editor at pipelinenewsnorth.ca
ELAINE ANSELMI Reporter 250.782.4888 dcreporter at dcdn.ca
Dan Przybylski Sales 250-782-4888 ext 101 c: 250-784-4319 dcsales at pipelinenewsnorth.ca
$325M gas plant
“We are very pleased to enter into this strategic alli-
ance with AltaGas,” said Patrick Ward, president and CEO of Painted Pony. “We have established a strong William Stodalka Staff Writer
Ryan Wallace Sales 250-785-5631 c: 250-261-1143 rwallace at ahnfsj.ca
Janis Kmet BC Sales 250-782-4888 C: 250-219-0369 jkmet at dcdn.ca
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Two gas companies have agreed to partner up to help deliver gas from the Fort St. John region. As part of that agreement, they have agreed to work together to build a plant worth an estimated $325 to $350 million about 100 kilometres north of Fort St. John. The agreement is between AltaGas – which controls quite a bit of the energy infrastructure in the Peace Region – and
Painted Pony, a natural gas exploration and production company. “We are very pleased to enter into this strategic alliance with AltaGas,” said Patrick Ward, president and CEO of Painted Pony. “We have established a strong working relationship with their team and our companies are fully aligned with respect to the potential for Montney gas development and the timing required for achieving our mutual goals. The companies expect the
“Townsend” plant to be built by the end of 2015. The plant is expected to process 198 million cubic feet per day worth of natural gas. The gas produced will be “sweet” – meaning it does not contain the poisonous hydrogen sulfide, which some other natural gas extracted does contain. AltaGas already runs the Blair Creek plant about 20 kilometres north of the Townsend facility. Painted Pony has been a frequent customer at the existing plant. However, it’s still unclear
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to be built north of fsj
MCT
working relationship with their team and our companies are fully aligned with respect to the potential for Montney gas development and the timing required for achieving our mutual goals
when the plant will begin construction, how many people the companies expect to employ during construction, how many people are expected to be employed after construction, or if these workers will be housed in camps or elsewhere. After the plant is completed, the companies said in a release that they could expand the Townsend facility so that it could recover additional natural gas liquids as well as process and potentially sell more of Painted Pony’s natural gas reserves. Ward said that Painted Pony al-
ready owns the property, and that it is already partially developed for industrial purposes. He added that they wanted to build the plant because they have already had success in the Montney region around Fort St. John. During the first and second quarters of 2015, they’ve increased production over 50 per cent, Ward said – and they would like a plant to process the gas they’re taking to make it suitable for the market. Questions directed to AltaGas were not answered by press time. reporter@ahnfsj.ca
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alberta
#LNGinAlberta
Pembina advances phase III of pipeline expansion The project consists of a new 24-inch diameter pipeline that will originate from a
tie-in point at Pembina’s existing pump station at Fox Creek and terminate at a tie-in point at Pembina’s existing facility at Namao Junction.
The necessary applications for the Fox Creek to Namao Junction segment of Pembina Pipeline Corporation’s previously announced $2-billion Phase III pipeline expansion have been filed with the Alberta Energy Regulator, says the company. Pembina expects the segment to have an initial capacity of 320,000 bbls per day and an ultimate capac-
ity of more than 500,000 bbls per day with the addition of midpoint pump stations. Subject to regulatory approval, the project is expected to be in service between late-2016 and mid2017. As part of the project, Pembina also has completed consultation related to, and applied to the AER for, an additional 16-inch diameter
pipeline from Fox Creek to Namao. However, a decision to construct the second pipeline is pending commercial support, said the company, which expects to decide on it later this year. In the meantime, Pembina has begun construction on its $150-million Simonette pipeline expansion, which is part of the Phase III expansion between Simonette and Fox
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Creek. The pipeline, which should be in operation in the third quarter of 2014, initially is expected to deliver 40,000 bbls per day of liquids to Pembina’s Fox Creek terminal. “We are very excited to reach this milestone for the core component of our Phase III expansion,” Jason Wiun, Pembina’s vice-president, conventional pipelines, said in a news release. — Daily Oil Bulletin
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alberta briefs
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Técnicas Reunidas gets $250 Million Contract
Audit Shows Operational Improvements, Says AER
CIBC seeking oil and gas engineers
Fort Hills Energy L.P. has awarded Técnicas Reunidas, an international engineering company based in Madrid, Spain, a lump sum turnkey model contract worth approximately C$250 million for the cogeneration plant at the Fort Hills oilsands mining project. Fort Hills, which has planned production of 180,000 bbls per day of bitumen, is a partnership between Suncor Energy Inc.(40.8 per cent), Total E&P Canada Ltd. (39.2 per cent) andTeck Resources Limited (20 per cent). The contract includes the engineering, procurement, construction and pre-commissioning, up to mechanical completion, for the installation of two nominal 85 megawatt gas turbines, two steam production heat recovery steam generators and all the related auxiliary systems for its interconnection with the utilities system of the Fort Hills oilsands mine. The cogen project is expected to be completed in 31 months. The project is the first EPC power project in North America for Técnicas Reunidas, which said that its oil and shale gas investments in the region represent a substantial opportunity for the TR upstream, downstream and power business. The cogen project also represents a new area that consolidates its presence in Canada, where it has been executing projects since 2012, said Técnicas Reunidas. — Daily Oil Bulletin
The Alberta Energy Regulator has lifted an order that Plains Midstream Canada was subject to, which required additional regulatory scrutiny until it had satisfied the regulator it could operate in compliance with AER requirements. “We are confident that they are moving in the right direction,”Darin Barter, an AER spokesman, said Monday. In response to repeated non-compliance by the wholly-owned subsidiary of Houston, Texasbased Plains All American Pipeline L.P., the newlycreated regulator last year took the unprecedented step of requiring Plains to obtain the approval of the AER’s chief executive for all applications (DOB, July 5, 2013). Between Jan. 1, 2011 and July 4, 2013, the AER issued and identified 19 high-and-low-risk deficiencies and regulatory non-compliant events, including 14 high-risk and five low-risk in connection with Plains’ AER-licenced pipelines and facilities. A number of high-risk non-compliances were related to major crude oil pipeline spills on the Rainbow pipeline in April 2011 and on the Rangeland South pipeline in June 2012. Monday’s decision to lift the “global refer” order followed the release of a full audit report of the company’s Alberta operations. The purpose of the audit was to determine the effectiveness of Plains’ various management, oversight and reporting programs. — Daily Oil Bulletin
ClBC is seeking to expand its A&D capabilities and is seeking energetic self-motivated senior and junior engineers with 5 to 20 years experience in the oil and gas industry with a focus on evaluations, exploitation engineering and corporate development. Direct A&D experience as well as familiarity with geoSCOUT, XI Technologies and Value Navigator software would be an asset. The individuals would work with the CIBC technical group, with the main responsibility of providing all the technical marketing materials required to market properties and/or companies. In addition, these individuals will be actively involved with our investment banking group and would provide technical expertise on a broad range of energy mandates. CIBC World Markets Inc. has a very active energy advisory group in Calgary. In addition to M&A advisory, CIBC also provides access to capital markets through IPOs, secondary offerings or private placements and has an active A&D group. CIBC’s goal is to be the premier client-focused wholesale bank based in Canada with a working environment that promotes teamwork as well as innovative thinking that allows employees to perform to their fullest potential. — Daily Oil Bulletin
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Shell aims For LNG FID in ‘two years’ Royal Dutch Shell plc expects to decide whether to develop an LNG export terminal on Canada’s West Coast in about two years, analysts heard on Friday. “We are aiming for FID [a final investment decision] in about two years followed by four to five years of construction and first LNG shortly after,” Marvin Odum, Shell’s upstream director for the Americas, told the company’s investor day in New York. He said Shell could establish a one-million-tonne-a-year LNG export operation in the first phase of the proposed Kitimat project. “This is an exciting opportunity,” he said. Odum said the company’s strong resource position in dry gas in Western Canada will be targeted at LNG. To improve its profitability, Shell has been focusing on projects it believes can deliver cash flow relatively quickly. It sold assets it felt would take too long to develop profitably.
“In liquids-rich plays, we have retained Western Canada and Permian acreage for further appraisal and development,” Odum said, noting the company has cut spending in resources plays this year by more than 20 per cent. “Some 30 per cent of this is aimed at dry gas, where production is likely to decline somewhat, ahead of growth
SAFE & SOUND
into Canada LNG later in the decade.” He said 70 per cent of resourceplay spending is going into appraisal of liquids-rich plays that have growth potential. “In Canada, we continue to derisk our exploration LRS [liquidsrich shale] acreage in the Montney and Duvernay formations in both
Alberta and British Columbia,” he added. “We are very encouraged from the early exploration and appraisal well results. “These projects could offer additional value uplift opportunities through integration with the chemicals business at Scotford or our heavy oil Carmon Creek project.” By “integration” of liquids-rich shales with “heavy oil,” Odum presumably means using condensate from plays such as the Duvernay to dilute Carmon Creek bitumen for pipelining. After decades of experimenting with various production methods, Shell last year sanctioned construction of the 40,000-bbl-a-day first phase of its Carmon Creek project in the Peace River heavy oilsands. The project will use vertical steam drive wells. According to a Carmon Creek brochure the company’s website, the Carmon Creek construction. — Daily Oil Bulletin
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PIPELINE NEWS NORTH •
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the north
matt lamers photo
Squamish defers vote on Woodfibre LNG
LNG conference was a success
City councillors have put off voting on a constroversial call for referendum on a proposed LNG facility in the city. Instead, they are considering holding a town hall meeting next month on Woodfibre LNG, a proposed LNG export facility that would operate from a former pulp mill site. A vote on the referendum question would only take place after that town hall meeting and once they have more information from a district-appointed committee. The issue goes to council tonight. The referendum idea was first raised at council on July 15, when Coun. Patricia Heintzman suggested a question be added to the local ballots when Squamish goes to the polls in November. Heintzman said the referendum will help gauge public opinion and make the public discourse more open. She said she was sceptical of the information provided by the proponent and that the community has felt alienated from decision making. “It’s the most divisive issue that I have seen in the council in a long time,” she said. But some of her fellow councillors have questioned her motives and said she is exploiting the issue for political gain. — Squamish chief
The Canada LNG Export Confernece was helpd in Calgary from Sept. 16-18, bringing together industry leaders, government officials and First Nations representatives. Speakers included Fort St. John Mayor Lori Ackerman, Dave Byng, Former Deputy Minister, Ministry of Jobs; , Hon. Perrin Beatty, President & CEO, Canadian Chamber of Commerce, and Shinya Miyazaki, Chairman, Diamond Gas Management.
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dawson creek
Dawson Creek home to B.C.’s first LNG plant City has some concerns on ALR
Christy Clark visits Dawson Creek in July.
Jonny Wakefield Staff Writer
City council approved a company’s proposal to build a liquefied natural gas processing and storage facility within the Dawson Creek city limits. Chief administrator Jim Chute said that AltaGas Ltd.’s proposed facility will be the first ever built in Dawson Creek. He added that it will likely be the first LNG plant built in British Columbia. However, unlike the facilities expected to fuel a LNG “boom,” the gas produced is intended for local markets. “Instead of being put in a
tanker and shipped overseas, [the gas] will be put in trucks and shipped north,” Chute said. “The provincial government isn’t having any luck getting LNG plants built on the west coast, but we’ll have one in Dawson.” The B.C. government hopes to export LNG to Asia, where the price is three to four times higher than in North America. The AltaGas facility, slated to be built on a five acre parcel on 27th Street, will process sweet natural gas, and will not “flare” or burn off excess fuel. It will not emit any odours, and is certified “dark sky friendly.” AltaGas’s facility was one of
courtesy PHOTO
several Premier Christy Clark touted on her visit to the Peace earlier this summer. At a stop at Northern Lights College in Dawson Creek, the premier signed a letter of intent with the company’s CEO. “LNG is a cleaner, cheaper energy source for northern communities,” the premier said in a release. “This letter of intent is another milestone for the development of B.C.’s LNG industry – not just for export, but also here at home.” The facility is expected to produce 500,000 gallons of LNG per day at its peak, and will cost around $25 million. reporter@dcdn.ca
Reforms to the Agricultural Land Reserve that could allow industry to operate on farmland without seeking exclusion would cut the city of Dawson Creek out of the oil and gas boom. That’s one of the messages the city will deliver to Victoria as part of its feedback on the provincial government’s proposed changes to the ALR. In May, B.C.’s Liberal government passed legislation to divide the land reserve into two zones – one for the Vancouver Island, the Okanagan and the south coast, and another for the interior, Kootenays and North. The land reserve was created in the 1970s by the province’s first NDP government, as a way of protecting farmland from suburban sprawl. However, critics – especially in the Northeast – often complain that the ALR was created with the Fraser Valley in mind, and is an unnecessary layer of red tape. The government is consulting local governments on the reforms. Municipalities have until Friday to give feedback. Among other things, the government has asked municipalities whether they support “expanding the parameters for when nonagricultural related businesses are allowed to operate on ALR properties in Zone 2.” According to a city report delivered to council Monday, the most common non-agricultural use of farmland is for oil and gas drilling. Relaxing the rules around local permitting of industrial development in rural areas would likely send oil and gas related companies fleeing to rural area, where property taxes are significantly lower and development standards more lax. “The result ... could well be a flight of servicing companies out of the [city] boundaries to locate their premises in the surrounding rural area,” the report noted. “Fort St. John has identified significant negative impacts from this trend.” “Out of the oil and gas boom, you would get nothing,” chief administrator Jim Chute told council. Ultimately, council decided they could only support the relaxed rules if new oil and gas servicing companies agreed to build within the city. Alternatively, they could agree to come within municipal boundaries. reporter@dcdn.ca
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dawson creek
reporter@pipelinenewsnorth.ca
TRANSCANADA photo
Huge camp with Merrick pipeline Dawson Creek businesses wondering how much will trickle down from the $1.9 billion natural gas pipeline slated to run less than 40 kilometres outside town. Jonny Wakefield Staff Writer
“Some of the companies actually have databases [of local suppliers] and insist the general contractor use the local databases to find local services they can engage.”
Dawson Creek businesses are wonding how much will trickle down from a $1.9 billion natural gas pipeline slated to run less than 40 kilometres outside town. On June 4, TransCanada Corp. announced it had been contracted to build a 260-kilometre pipeline from just outside Dawson Creek to Summit Lake in the interior. From there, the gas will flow to Kitimat on existing infrastructure. Dubbed the Merrick Mainline, the project will transport natural gas from plays in the Northeast operated by Chevron and Apache – co-owners of the Kitimat LNG project. Since the pipeline was announced, however, Apache Energy pulled out of the Kitimat LNG project, citing pressure from shareholders. Davis Sheremata, a spokesperson for TransCanada, said the pipeline’s fate is up in the air. “It is very difficult to know what impacts this could have, and we will need to study that in greater detail,” he wrote in an email. “According to our agreement, if the agreements exe-
cuted by Chevron/Apache terminate, any costs incurred [by TransCanada] will be covered by Apache.” Shelley Milne, owner of Action Health and Safety, said what local businesses can gain all depends on which company TransCanada appoints as its contractor for the project. “Some of the companies actually have databases [of local suppliers] and insist the general contractor use the local databases to find local services they can engage,” she said. Action Health and Safety provides medic services for oil and gas producers. Milne said that unlike government contracts, managers on many private projects won’t open contracts up for general bids – relying instead on word of mouth or relationships with past contractors. Then there’s the recurring worry about work camps. The Dawson Creek Chamber of Commerce recently heard at a meeting with TransCanada that the project would include a 650-person work camp near Groundbirch – or somewhere between Dawson Creek and Chetwynd; the precise location is unclear. “I know TransCanada is working to create some systems to engage more
local businesses, but of course our concern is 650 men living out near Groundbirch,” said Chamber Executive Director Kathleen Connolly. For now, she said, she’s encouraging local businesses not to overextend themselves to get contracts that may not materialize. The Chamber passed a motion at the B.C. Chamber of Commerce general meeting recently asking government to streamline the permitting process for work camps and to require camp operators to buy certain goods and services from local companies. Work camps can be approved by several different government agencies, depending on where and for what purpose they’re built. Many local officials have complained about the difficulty of knowing even how many camps are operating at any given time. The TransCanada project is still in the early stage, and whether it’s built depends on Kitimat LNG’s decision to invest in the project. Of the 19 new LNG projects slated for development in northeast B.C., none have made final investment decisions. See CHAMBER on Page 24
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trudeau slammed Mayors of dawson creek and fort nelson, senator richard neufeld William Stodalka & Jonny Wakefield Staff Writers
Some Northeast B.C. politicians are saying even a temporary halt to fracking could have dire effects on the region that one of the front-runners in the 2015 prime minister’s race may not have fully considered, based on recent comments. At a stop in New Brunswick last week, Liberal Party of Canada leader Justin Trudeau said more scientific study is required before Canada expands natural gas exploration and drilling. “In terms of fracking and shale gas, we need to make sure that we have all the information, that there is proper science done,” Trudeau said. “That’s why we need to make sure that we’re strong on both the science and the long-term vision ... before we move ahead with that.” But comments from the man who many polls say could unseat Prime Minister Stephen Harper have politicians in B.C.’s gas country firing back. Northern Rockies Regional Municipality Mayor Bill Streeper condemned Trudeau’s statements, saying the Liberal leader was ill-informed. “He has no idea about the oil patch at all,” he said. “To say that we need to
study fracking more shows the ignorance that comes out of the East and the West.” Streeper was also pessimistic about the future of northern B.C. if the Federal government were to order a stop on shale gas exploration for further study. He also compared Trudeau’s recent statements to the National Energy Program introduced by his father, Pierre Trudeau. The program, while intended to promote energy independence, was reviled in Western Canada because it aimed to keep domestic oil prices below world prices. “So like father, like son,” Streeper said. Conservative Senator Richard Neufeld, who represents the Northeast, said any slowdown of natural gas development “would devastate us,” saying natural gas production “is what makes Northeast B.C. tick.” A study released in November more than doubled the amount of natural gas thought to be trapped in the Montney formation that straddles B.C. and Alberta. It was the first assessment of its kind for the region and estimated that the field can support commercial gas drilling activity for 150 years or longer. The volume of marketable gas is now believed to be 12.7 trillion cubic metres, which is roughly the volume of Lake Superior. “The government does the right
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feature report
for LNG comments mp bob zimmer say fracking ban would ‘devastate’ economy thing, and continues to do the right thing when it comes to researching fracking,” said Neufeld, who added that B.C. leads Canada in unconventional natural gas production. There are currently 19 gas projects in various stages of development in B.C., two of which would transport natural gas produced in British Columbia and Alberta to Oregon, where it would be liquefied and shipped to markets in Asia. The other 17 would be based up and down B.C.’s Pacific coast. The opening of just five LNG plants by 2021 would create more than 60,000 jobs at peak construction, estimated the Grant Thornton LNG Employment Impact Review. The report also estimated that another 75,000 jobs will be created after the five LNG projects are fully operational. That’s one of the reasons Dawson Creek Mayor Dale Bumstead said that he was opposed to shutting or slowing down the fracking industry to study the issue. “I absolutely want it done safely,” he said. “[But] I haven’t seen anything to the contrary, where it’s causing this kind of issue.”
Bumstead also praised the existing regulations of the B.C. Oil and Gas Commission, and said that slowing resource development would cut funds for healthcare and education. “We have to stop saying no to everything,” he said. “We all want more in terms of our social programs.” Some studies appear to back up Trudeau’s point, like one commissioned by Environment Canada and released earlier this year, which stated “data about [fracking’s] potential environmental impacts are neither sufficient nor conclusive.” “There is reason to believe that shale gas development poses a risk to water resources, but the extent of that risk and whether substantial damage has already occurred, cannot be assessed because of a lack of scientific data and understanding,” the report concludes. When asked for comment, Fort St. John Mayor Lori Ackerman said in an emailed statement that she supported further research. “Canada is a resource nation and our resources support the development of our knowledge economy,” she wrote.
“We know that investment in research and development can make resource industries safer, more efficient, effective and leave a lighter footprint. I believe that R&D is where we should be putting the focus.” But Prince George-Peace River MP Bob Zimmer said that Trudeau “needs to understand the science of hydraulic fracking and the LNG and also oil and gas industry as a whole and understand that it is safe.” “There has been no issue of water contamination in B.C.’s history, not to mention across the continent,” he added. “There have been stories and innuendo, but they’ve been found baseless.” Zimmer said that a moratorium would be “catastrophic” for northern B.C. “Even a slowdown wouldn’t be a good thing for British Columbians or Canadians. It wouldn’t be good for anybody,” he said. “I just wish he would do more research before he makes comments like that.” Trudeau’s office did not return phone calls seeking comment. reporter@dcdn.ca, reporter@ ahnfsj.ca
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#LNGinBC
Pipeline company funds safety education ‘We’re very pleased with this donation from TransCanada to UNBC to help fund student spaces in the occupational health and safety officer course that’s offered through continuing studies.’ Devan Tasa A donation from a pipeline construction company will allow 24 students to take an occupational health and safety officer course at no charge. TransCanada’s Prince Rupert Gas Transmission project donated $82,500 to UNBC so that the $7,000 course would be free for a single cohort of students. The project aims to construct a natural gas pipeline from a point
north of Hudson’s Hope to a proposed liquefied natural gas facility on Lelu Island close to Prince Rupert. “We’re very pleased with this donation from TransCanada to UNBC to help fund student spaces in the occupational health and safety officer course that’s offered through continuing studies here at UNBC,” said Mark Dale, the university’s interim president.
“As we know, the natural resource sector is growing and there is increasing need to have qualified occupational health and safety officers. This program will help meet that need.” “It’s important to build a strong, skilled workforce in Northern B.C. and we can’t emphasize enough how important this is to TransCanada,” said Dale O’Dwyer, a safety manager with
TransCanada. “Should even a few of the LNG projects go [ahead] and the related natural pipeline approved, the demands on the labour force [would be] significant.” The course, which has existed at UNBC in various forms over the last eight years, teaches students a variety of skills, from developing emergency plans, understanding safety legislation and auditing an
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organization’s overall safety system, over a period of nine weeks. “We believe that the programs that create a safe work environment are just as important as the construction,” O’Dwyer said. “As such, the occupational health and safety officer training will form an integral part of the future labour force.” The course has been slightly modified to meet the needs of the pipeline company. The final day of the course has subjects specific to pipelines, but the rest of it is general enough to fit the needs of ten major industries, said Lisa Haslett, manager of continuing studies at UNBC. The 24 students have not been selected yet. “People need to apply to be part of the program and then out of the applications that come in, we’ll select [24] people based on eligibility,” she said, adding the university would be sending out application packages. To be eligible one has to be 19 or over, be fit enough to handle the demands of construction, supply a resume, write an essay about why they want to take the course,
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and either have a Grade 12 education or complete an assessment. “We only have a select number of seats that this money allows us to give tuition-free and after that people could, if they wanted to, sign up for a paid program,” Haslett said. One of the people who chose to
pay for the course was Sherry Earles, who choose to take it in March after she became unemployed. She said the course brought in speakers and gave her access to a network of resources and connections. One of the highlights for her was the hands-on experience. “We also went out and did some
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site tours,” she said. “We did some inspections in different facilities and to me, that was very important.” Earles said she was taking additional safety training, which she hoped would result in future employment. — Prince George Citizen
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photo essay
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inside saturn 1 One year ago this month, Shell unveiled its new Saturn 1 Plant to company executives during a commissioning tour at the new facility. The state-of-the-art plant has groundbreaking techniques in energy supply, water use and emissions reduction. “50 years from now, this Groundbirch facility will still be producing gas, supplying it to North America and Asia.”
Rej Tetrault, Shell Operations Manager, at the Saturn 1 Gas Plant. Saturn 1’s inventive on-site projects include its own electric plant, powered by two 20,000-horsepower natural gas turbines, as well as a self-integrated recycled water system and two vapour recovery units that allow for 100 per cent emissions control during the end-stage refrigeration process. matt lamers PHOTOS
The state-of-the-art facility possesses groundbreaking techniques in energy supply, water use and emissions reduction, as Shell looks to be a leader in effective, mass-fuel extraction for supply to B.C.’s coast. “Forty years from now, 50 years from now, this Groundbirch facility will still be producing gas, supplying it to North America and
Asia,” said Shell Canada’s onshore vice-president, Dave Todd, at the Saturn 1 opening one year ago. “It’s taking the best of what we’ve got from this site and tweaking the bits we think we can do a little smarter for the next plant. It’s all about learning.” Saturn 1’s inventive on-site projects include its own electric plant, powered by two 20,000-horse-
power natural gas turbines, as well as a self-integrated recycled water system and two vapour recovery units that allow for 100 per cent emissions control during the end-stage refrigeration process. Furthermore, the plant’s fully automated system requires the work of only four Shell operators. At full capacity, it will produce
200 million cubic feet of gas per day — equivalent to roughly 6 per cent of the current natural gas production in British Columbia. Shell plans to add two more Saturn plants in the next 10 years with the same capacity, meaning that when done, roughly a fifth of the province’s gas will come from these fields, based on 2013 data. — Files from Brock Campbell
courtesy photo PIPELINE NEWS NORTH •
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reporter@pipelinenewsnorth.ca
matt lamers PHOTOS
“Forty years from now, 50 years from now, this
Shell Canada’s onshore vice-president, Dave
Groundbirch facility will still be producing gas,
Todd, at the Saturn 1 Gas Plant’s grand opening
supplying it to North America and Asia,” said
one year ago this month.
From Left: Rayel Cooper, Rej Tetraul, Patty Richards and Peter Dichrow walk the grounds of Shell’s Saturn 1 Gas Plant. The state-of-the-art facility possesses groundbreaking techniques in energy supply, water use and emissions reduction.
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photo essay
matt lamers PHOTOS
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Rayel Cooper is a Field Operator at Shell Canada. The state-ofthe-art facility possesses groundbreaking techniques in energy supply, water use and emissions reduction.
inside saturn 1
Saturn 1’s inventive on-site projects include its own electric plant, powered by two 20,000-horsepower natural gas turbines.
Pipeline pigs are devices that are inserted into and travel throughout the length of a pipeline. They’re commonly used for internal inspection, displacement, and to batch separate products.
PIPELINE NEWS NORTH •
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reporter@pipelinenewsnorth.ca
Mike Willson.
matt lamers PHOTOS
At full capacity, it will produce 200 mil-
the best of what we’ve got from this site and
lion cubic feet of gas per day - equivalent to
tweaking the bits we think we can do a little
roughly 6 per cent of the current natural gas smarter for the next plant. It’s all production in British Columbia. “It’s taking
about learning.”
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Chamber urges oilfield firms to remain cautious CHAMBER from Page 15 The slated completion date for the Merrick Mainline is 2020, although the pipeline is still awaiting approval from the National Energy Board. “We’re telling our members that if these projects happen, and all this work comes out of it, to make sure they have access to capital so they can grow their business,” said Connolly. “But I’m not sure it’s the smartest thing to do right now until we know which of these LNG plants are actually going to see investment.” Some businesses hire employees specifically for the time-consuming process of bidding on contracts. Major companies tend to have their own databases of businesses that provide certain services. In addition. BC Hydro and all levels of government have separate bidding systems. A spokesperson for TransCanada said the company does have a policy to buy certain goods locally, but did not elaborate. According to a fact sheet on the Merrick project, pipeline work creates “demand for local goods and services including food and accommoda-
tion, hardware, industrial parts, automotive parts and servicing, fuel and more.” But according to Milne, some contractors won’t issue requests for bids on certain services – including water hauling, garbage removal health and safety. “I would love to put work into bidding,” she said. “But unfortunately, we never get approached for that type of job.
‘We’re telling our members that if these projects happen, and all this work comes out of it, to make sure they have access to capital so they can grow their business.’
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industry news
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twitter.com/pipelinenn
LNG projects hit mct
LNG from Page 5
In July the Canadian unit of Fort Worth, Texas-based Quicksilver Resources applied to the National Energy Board to export up to 20 million tons per annum (mtpa) of LNG. The project is named Discovery LNG and would be based near the Campbell River on Vancouver Island. In July, Woodside Energy Holdings, a unit of Australia’s Woodside Petroleum, applied to the NEB for a license to export 20 million tonnes of super-chilled gas per year for 25 years from a proposed terminal on the Northwestern coast. Last January Woodside purchased rights from the B.C. government to build an export facility at Grassy Point. On July 8, 2014, Steelhead LNG applied for five licenses to export LNG from Vancouver Island for 25 years. On June 20, 2014, WesPac Midstream Vancouver LLC applied to export up to 400 million cubic feet of liquefied gas a day from a liquefaction plant to be built in Delta, B.C. On March 5, 2014, Canada Stewart Energy Group Ltd. applied for
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a permit to export 30 MMt of natural gas per month for a period of 25 years from a liquefaction terminal to be located near Stewart.
LNG Exports Limited was granted a license to export 21.6 million tonnes of per year for a term of 25 years.
On Dec. 18, 2013 Kitsault Energy Ltd. applied for a permit to export up to 20 million tons of liquefied natural gas per year, for 25 years.
On Dec. 16, 2013, Pacific NorthWest LNG received permission from the NEB to export 19.68 million tonnes of LNG per year. Pacific NorthWest LNG has emerged the frontrunner, potentially making an FID by year-end.
Export approvals On May 1, 2014, Oregon LNG Marketing Company received permission from the NEB to export 473 Bcf of natural gas to the U.S., where it will be liquefied and shipped to Asia. The export point is the vicinity of Kingsgate B.C. On May 1, 2014, Aurora Liquefied Natural Gas Ltd. received permission from the NEB to export 2.3 million tonnes of LNG per year for a 25-year term from a terminal near Prince Rupert, B.C. On April. 16, 2014 Triton LNG Limited Partnership received permission from the NEB to export 2.3 million tonnes of LNG per year for a 25-year term from a floating processing plant. On Feb. 20, 2014 Jordan Cove LNG L.P. was granted approval by the NEB to export 9 million tonnes of gas per year to the U.S. for 25 years, where it will be liquefied and shipped to Asia. On Dec. 16, 2013, Prince Rupert
matt lamers
On Dec. 16, 2013, WCC LNG was granted a license to export 30 million tonnes of LNG per year for a term of 25 years. On Dec. 16, 2013, Woodfibre LNG Export Pte. Ltd. earned a license to export 2.1 million tonnes of LNG per year for 25 years.
mct
On Oct. 13, 2011, KM LNG was granted a 20-year permit by the NEB to export an annual volume of 10 million tonnes of LNG. It was the first LNG export license issued by the NEB since the deregulation of the natural gas market in 1985. On Feb. 2, 2012, BC LNG Export Co-operative LLC received a 20year license from the NEB to export 1.8 million tonnes of LNG per year. On Feb. 4, 2013, LNG Canada was awarded a 25-year permit from the NEB to export 24 million tonnes of LNG per year at a terminal that will be built near Kitimat.
matt preprost
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reporter@pipelinenewsnorth.ca
Are you going to do Movember this year? Dave Dyck Staff Writer
The month of November means a chill in the air and the start of another long winter. It also means the beginning of Movember, a facial hair challenge to raise money for men’s health that is fast becoming a tradition, particularly in the oil and gas industry. They even have a name for it: the Oil Rig Rumble, and it’s only getting bigger. 2011 saw 972 participants raise $850,000. In 2012, 1,391 people participated, raising $1.29 million. Then last year saw the biggest numbers yet, with 2,500 participants raising over $1.5 million for Movember Canada.It isn’t just for men, either. “Mobros” are joined by “Mosisters” as they’re dubbed, who aid in fundraising. That money supports three men’s health issues: prostrate cancer through research and programs, tes-
ticular cancer through research, and men’s mental health, which organizers say is one area that’s particularly lacking. “We’re trying to fund some grassroots and some new innovative approaches to dealing with what are becoming increasingly difficult in the men’s mental health space,” said Jeff Lohnes, business engagement manager for Movember Canada. Lohnes credits the playful nature of the movement that has helped it catch on, particularly in the oil and gas sector. “I think the good type of people that are in that industry that don’t mind making fun of themselves a little bit for a month and having a laugh are the type of people who pick it up and are looking to do it,” he said. Last year, the top earner for Movember worldwide was a participant from the Oil Rig Rumble out of Calgary.
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“I think part of the reason it’s done so well in that community is … it’s a male-dominated industry in terms of numbers of staff, so there’s that appetite for a cause that does support a lot of the individuals who are in the industry,” said Lohnes. Another high earner, Neil Evans, was born and raised in Fort St. John. He’s been participating for four years, and has raised over $25,000 for the Movember cause. “You look at the transient population and the oil workers up in this area, and there’s a lot of guys hanging around,” said Evans. “I hate to use the term ‘redneck,’ hopefully that’s not too discriminatory, but we have a very large redneck population, and they get right into it, growing moustaches.” He said he’s also seen an uptake in the number of larger oil and gas companies that embrace the movement. As for his own moustache, he described the thing as “absolutely horrible” and “patchy.” That just encourages him to raise more money. “My motto behind the whole thing is ‘I may not be able to grow a moustache,
but I make up for it in fundraising,’” he said. He agreed that a sense of humour is important for participants. “It’s hilarious to see guys who never wear a moustache, to see what comes out on their face. It’s rather entertaining,” he said. As a manager at the Fort St. John Hospital, he understands the stakes only too well. and much of it is helping to battle the stigma that plagues discussion surrounding men’s health. “[It’s great] to have something male-oriented that raises awareness about health, especially stuff that we don’t like to talk about, i.e. prostate cancer, testicular cancer, or mental health in men,” he said. “I fell in love with the whole idea of Movember, I really took it by the horns and promoted the hell out of it.” Originally started in Australia, the Movember movement was imported to Canada in 2007. Last year, 176,000 Canadian mobros and mosisters raised just over $29-million, more money for the cause than in any other participant country. peacereporter@ahnfsj.ca
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Oil & gas conference in FN cancelled
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The council for the Northern Rockies Regional Municipality cancelled the 2014 Oil and Gas Conference scheduled to be held next month in Fort Nelson, citing poorer than expected registration numbers, among other factors. The decision was made at a special meeting held on Tuesday. “The conference has been cancelled due to…limited resources and low participation from key industrial and government stakeholders,” the Northern Rockies website states. “The conference was in competition with other related events such as the Northeast B.C. Natural Gas Summit occurring in Vancouver.” They wrote that it would be bet-
ter to cancel an event than “host an event that does not meet the needs of the local community.” The event has been going on for over a decade, rotating between Fort Nelson, Fort St. John, and Dawson Creek. Northern Rockies Mayor Bill Streeper said that they had asked every provincial minister, ministry, and premier to attend, and the only response they received was a ‘no’ from Christy Clark’s office. Streeper said it was “very disappointing.” He also blamed it on the slowdown of gas drilling in Fort Nelson, which he blamed in part on the long-delayed LNG taxation plans of the provincial government. reporter@ahnfsj.ca
A&B is recruiting for a large number of positions for upcoming projects in the Grande Prairie area. First hiring priority will go to current and former employees, followed by external candidates with pipeline & facility experience. We encourage you to apply right away!
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EMPLOYMENT
reporter@pipelinenewsnorth.ca
ITA creates new trade for LNG industry ‘We are very pleased to support the launch of the new Construction Craft Worker programme. It will formally recognise the high level of skills required to perform work included in the trade.’ A rig in Fort Nelson.
perform demolition, excavation and compaction activities. “We are very pleased to support the launch of the new Construction Craft Worker programme,” said Randy Callaghan, Field Personnel Advisor, PCL Constructors Westcoast Inc. “This new programme will formally recognise the high level of skills required to perform work included in the trade. As a designated Red Seal trade, the formal technical training will increase the skills and abilities of the tradesperson while increasing both the productivity and quality of the work performed for the employer.”
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“Creating the Construction Craft Worker Red Seal certification is another important example of our Blueprint in action,” said Shirley Bond, Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour. “Labour market data has identified a critical need for this trade in the LNG industry and other sectors of our growing economy, and through the ITA we are responding decisively to the demand.” TA has issued a Request for Expression of Interest (RFEI), and will work with training providers to develop a plan for initial rollout. — Provided article
Our goal is to get you
R001693908
B.C.’s Industry Training Authority (ITA) announced the introduction of Construction Craft Worker (CCW) as B.C.’s 48th Red Seal trade. This move was in direct response to the LNG industry’s demand for skilled workers in the north of B.C., specifically construction trades helpers and labourers. “Our organisation is very excited about having the CCW Red Seal occupation in B.C. This programme validates the work that our members have been doing for over 85 years,” said Dean Homewood, Training Plan Administrator, Construction & Specialized Workers’ Union (CSWU) Local 1611. “This occupation will unite the CCW programme across Canada and allow for the transferability of trained workers across Canada. The programme is needed because the labourer is the top manpower position required on the LNG project and/or the pipeline project.” Recent LNG data indicates that the construction of five LNG plants in B.C. between 2015 2024 would create a total industry investment of $175 billion, and up to 100 000 jobs: 58,700 direct and indirect construction jobs, 23,800 permanent direct and indirect jobs for operations, and thousands more of induced jobs as a result of households having more income. “The recent B.C.’s Skills for Jobs Blueprint positions ITA to play a critical role in helping to meet the booming LNG industry’s workforce challenges,” said Gary Herman, CEO, ITA. “We heard there was an immediate need to amplify and raise the standard of excellence for the Construction Craft Worker trade here in B.C., and we responded. It’s a small but crucial step to help ensure we have the right people, in the right place, at the right time.” Construction trade helpers and labourers are in high demand for LNG occupations, with an estimated demand for 11,800 construction trade helpers and labourers by 2018. Construction craft workers work primarily outdoors; their tasks include site preparation and cleanup, setting up and removing access equipment, and working on concrete, masonry, steel, wood and precast erecting projects. They handle materials and equipment, and
Toll-Free 1.855.436.3676
www.enformbc.ca
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#LNGinBC
closing argument
Is B.C.’s ‘super, natural’ tourism industry threatened by the LNG sector? No.
Vancouver sun
John Winter Opponents of the liquefied natural gas (LNG) industry would have us believe that our appreciation for pristine oceans and clean air is at risk if LNG tankers join the marine traffic already travelling our coastline. These activists who engage in their own brand of political spin are not being held accountable for what they say, and have successfully rammed through decisions without proper debate.
Two municipal councils recently passed resolutions opposing the Woodfibre LNG proposal before even hearing from the proponent. Not to mention, these resolutions seek to limit shipping in Howe Sound, when not unlike Burrard Inlet, shipping is happening, and has been happening safely for decades. Local MP John Weston is right when he said elected officials should wait until they know all the concerns, how significant they are, and what can be done to mitigate them before voting to
support or oppose a proposal. The Woodfibre LNG project has a lot of positives: the site is zoned for industrial use, has a deepwater port and access to the BC Hydro grid. The District of Squamish estimates they’ll receive $2 million plus in taxes, annually, which is a significant amount in a community facing double digit increases to property taxes since the pulp mill closed in 2006. Anti-industry activists waging a war against Woodfibre LNG’s proposed LNG processing and export facility outside Squamish are
matt lamers
taking their fight to mayors and councillors. The wealth that B.C. takes for granted — that funds our schools, hospitals and social programs — is directly correlated to industry like LNG. The resource industry is a major contributor to our province’s prosperity, so let’s get behind LNG in B.C.
— John Winter is President and CEO, BC Chamber of Commerce. The opinions expressed are his own and not necessarily those of PNN.
Students benefit from Spectra Energy Foundation Students in three programs at Northern Lights College have benefitted from a special $7,500 award provided by the Spectra Energy Foundation to support trades programs. The funds supported students in the following programs: · Wind Turbine Maintenance Technician: exam fees not included in regular program tuition were covered for seven students. · Electrician: Skills Canada competitors Robbie McMullin and Hayden Stebing received funds to
help cover travel expenses to the national championships in Toronto. · Industrial Instrumentation Mechanic: A Level 3 Apprenticeship student’s accommodation was covered while attending at the British Columbia Institute of Technology to complete a component of the Level 3 program. “We are very appreciative of the generosity shown by the Spectra Energy Foundation in providing this funding that assisted 10 NLC students in resolving financial questions that could have poten-
tially had a negative impact on the students,” said Rene Tremblay, Dean of Trades and Apprenticeship. “At Spectra Energy, it’s critically important for us to invest in the communities where we live and work,” said Gary Weilinger, Vice President External Affairs. “Supporting education and workforce development is a high priority and ensures future success for these students.” Student awards are administered by the NLC Foundation. — Article provided by NLC.
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locations that suit your business needs • Distributed to the community in general through these fine publications, Alaska Highway News, Dawson Creek Daily and Fort Nelson News. • Distribution by mail and direct drop-off to Oil & Gas companies,and related businesses and organizations, in the following communities: British ColumBia – Arras, Baldonnel, Cecil Lake, Charlie Lake, CHETWYND, Clayhurst, DAWSON CREEK, Farmington, FORT NELSON, FORT ST. JOHN, Goodlow, Groundbirch, HUDSON’S HOPE, Moberley Lake, Pink Mountain, Pouce Coupe, Progress, Rolla, Rose Prairie, Sunset Prairie, Taylor, Tomslake, TUMBLER RIDGE, and Wonowon. alBerta – Baytree, Bear Canyon, BEAVERLODGE, Berwyn, Bezanson, Bonanza, CLAIRMONT, Eaglesham, FAIRVIEW, Falher, Girouxville, GRANDE PRAIRIE, Grimshaw, Grovedale, HIGH PRAIRIE, Hines Creek, Hythe, LaGlace, MANNING, McLennan, PEACE RIVER, Rycroft, SEXSMITH, Silver Valley, Spirit River, VALLEYVIEW, Wembley, and Worsley, Zama City. R003424352
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• PIPELINE NEWS NORTH
Awesome LeAses 2014 GMC Sierra 1500
31 MPG*
4x4 Double Cab Pickup
equipped with 4.3 litre, fuel injected V6, HD trailer towing, 6-speed automatic, 17” wheels, stainless steel exhaust HD battery, 4-wheel abs, stabilitrak, my LinkAudio system, bluetooth, onstar, 5 yr 160,000 km powertrain warranty
Redesigned fRom Hood to HitcH
LEASE FOR
$168*
* 60 month lease, not including taxes Includes truck owner loyalty
/Bi-Weekly
51 MPG*
R001863595
2014 Chevrolet Cruze LT Turbo
tURBo cHARged
LEASE FOR
$109*
“get the most from each litre”
equipped with 1.4 litre cylinder, turbo charged engine, air conditioning, automatic transmission, bluetooth, onstart, Chevrolet myLink entertainment system, Xm satellite radio, 5 yr 160,000 km powertrain warranty
/Bi-Weekly
www.murraygmc.com Check us out on Facebook! murray Gm Fort st. John
250-785-8005 DLR# 10839
11204 Alaska Road, Fort st. John, BC