Special down on�lights B.C., investing $600M Montney SpecialReport: Report:Encana Airlinesdoubles mull new daily for Fort St. John, in Dawson Creek
january / february 2015 FEBRUARY / MARCH 2015
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Pipeline News North analyzed the proposed LNG projects on the West Coast to bring you the latest on those that are on track and Dawson Creek’s the ones that face delays. Currently 20 projects are vying to export Alberta and British Columbia’s natural gas to Asia.
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R001697746
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FEBRUARY / MARCH 2015
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FID expected this year on $2.5 billion
chetwynd gas plant
A final investment decision could be made this year on the first phase of Blue Fuel’s proposed $2.5 billion gas plant near Chetwynd that would come with 2,000 jobs during construction and 250 to 300 full-time positions once it’s up and running.
Blue Fuel Energy proposes to build a massive $3.8 billion natural gas-to-gasoline plant outside of Chetwynd, similar to the one pictured here in New Zealand.
Blue Fuel says it hopes to have an Environmental Assessment Certificate granted by mid- to late 2015. The first phase of the Sundance Fuels project will cost approximately $2.5 billion, and will consist of a plant that will use natural gas, wind and hydro power to produce reduced-carbon gasoline. By Mike Carter
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• PIPELINE NEWS NORTH
FEBRUARY 13, 2015
Ditmarsia Holdings winners of last years 11th Annual Fort St. John Oilmen’s 4 on 4 Hockey Tournament. (Matt Lamers Photo) (Matt Lamers Photo)
The next Fort St. John Petroleum Association meeting is on March 5, 2015 @ the FSJ Curling Club. See you there! R003152861
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FEBRUARY 13, 2015
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: Contact: Wayne Doll • Sales Consultant Contact:Ryan DarcySaunders Hofstrand• •Sales SalesConsultant Consultant Cell: 250.261.9560 Cell:778.256.2117 250.264.7203 Cell: www.jamesws.com
Tribune News Service
PNN
NUMBERS
The following figures were taken from the stories in this issue of Pipeline News North.
$2.60: The AECO “C” spot price on Feb. 10. Chart on Page 7 19: The number of LNG projects based in B.C. after the entry of NewTimes Energy. Story on Page 7 $2.5 billion: The price tag for the first phase of a proposed gas plant in Chetwynd. Story on Page 8 810,000: The number of barrels of oil the International Energy Agency expects Canadian oil production to expand by 2020. Story on Page 11
$3.7 billion: What Woodside paid for Apache assets in Australia and Northeast B.C. Story on Page 13 $500 million: The cost of Douglas Channel LNG, which is ‘advancing toward’ an FID this year. Story on Page 14 3: The number of carriers that will service Fort St. John-Vancouver if Jetlines makes it off the ground. Story on Page 18 2018: The year Kitsault Energy aims to be in service, shipping LNG from B.C. to Asia. Story on Page 20
$250,000: Northern Gateway’s donation to the College of New Caledonia (CNC) in Prince George, to go towards educational programming. Story on Page 24 70: The number of people who turned out for the last Fo4t St. John Oilmen’s Association. Story on Page 25 300,000 gigajoules: The amount of LNG FortisBC will provide to BC Ferries for its new LNG-powered ferries. Story on Page 28
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20
The Alberta-B.C. LNG 5 discount (chart)
U.S. gas price 5 (chart)
B.C. land auction 5 (chart)
pnn 12
Japan gas 5 price (chart)
14
FID expected this year 8 on Chetwynd gas plant Less competition helps Fort 10 Hills’ costs decline (brief) MEG beats 10 production targets (brief)
Look for PNN on FB: 11 pipelinenewsnorth
18 NEW DAILY AIR SERVICE FOR FORT ST. JOHN?
20 LNG IN B.C. GETS FIRST FID - KIND OF 22 TransCanada looks to local contractors 23 Alliance president talks up LNG in Fort St. John. 24 Northern Gateway gives $250,000 to college
Existing oilsands projects 10 expected to plow ahead (brief) IEA FORECASTING CANADIAN 10 OIL SUPPLY GROWTH
14 Douglas Channel LNG ‘advancing toward’ FID
19 NEW DAILY AIR SERVICE FOR DAWSON CREEK?
Alberta petroleum 5 land auction (chart)
12 FORT NELSON OPTIMISTIC AFTER APACHE SALE
19
25 Fort St. John Oilmen discuss health & hockey 26 Keystone will survive: Jim Prentice 28 FortisBC gets LNG contract for ships Look for PNN on Twitter @PipelineNN
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.
FEBRUARY 13, 2015
PIPELINE NEWS NORTH •
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the charts
#oilsands
alberta O&G land auction Alberta’s oil and gas land tender pulled in $5.5 million in late Jan. The next land sales is Feb. 11. Source: Alberta Energy Regulator
NewTimes Energy Ltd. joins LNG race in B.C. It’s the 19th project that has proposed exporting natural gas to Asia from the West Coast
David Dyck Staff Writer
December 2013 to February 2015
alberta-b.c. lng discount The Alberta-B.C. Natural Gas Discount (ABCD) is the difference in price that a BTU of natural gas costs in Tokyo compared to Alberta. It sits at a four-year low of $14.00. December 2013 to February 2014
alberta spot gas price The AECO “C” spot price, the Alberta gas trading price. Source: Natural Gas Exchange
December 2013 to February 2015
Despite plunging energy prices, proponents continue to pop up in the race to export British Columbia’s natural gas. NewTimes Energy Ltd. applied to the natural energy board (NEB) for a 25-year license to export up to 12 million metric tonnes of LNG annually. NewTimes Energy is proposing to build a floating facility, located near Prince Rupert, according to the license application filed Feb. 11. The facility will consist of up to three LNG trains. The proposed project “is expected to occur in 2019,” according to the filing in three stages: 4 MMt in 2019, 8 MMt in 2020 and 12 MMt in 2021. As far as LNG projects in B.C. go, this would be mid-scale. Other range 30 MMt (WCC LNG) to 1.8 MMt (Douglas Channel LNG). NewTimes is still in working through upstream, mistream and downstream aspects of the project, and is currently in talks with
investors, gas suppliers, offtakers, and pipeline companies. “The applicant is currently in discussions and negotiations with a view to reaching agreement with a number of invertors, gas suppliers, LNG purchasers, pipeline transmission companies, technology providers, land owners, terminal builders and shippers, which are top tier enterprises in their respective industries,” according to the filing. “The particular business models have yet to be finalized.” NewTimes says there is ample supply and demand. “Prospective LNG buyers are looking to acquire reliable longterm supply to meet growing demand in their downstream markets,” stated the applicant in the 12-page report. “Obtaining the License is an important threshold step in the development of the Project because it will facilitate NewTimes’ ability to enter into long term sales agreements that will in turn enhance the viability of the project.” LNG on PAGE 23
b.c. o&g land auction
japan lng import price
The BC Oil and Gas Commission’s monthly land tender pulled in $2.2 million in January’s sale. The next sale is Feb. 25.
The Japan LNG Import Price fell to lows unseen since 2011 in December and January, following oil prices. Source: World Bank December 2013 to December 2014
December 2013 to January 2014
Oil price wti price
u.s. spot gas price
The price of West Texas Intermediate has fallen dramatically in the past six months, losing more than half its value. Source: U.S. Energy Information Agency
Left, the Henry Hub Natural Gas Spot Price (dollars per Million Btu). Source: U.S. Energy Information Agency
December 2013 to February 2015
May 2010-February 2015
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FEBRUARY 13, 2015
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PNN FID expected this year o William Julian Regional Manager 250-785-5631 wjulian at pipelinenewsnorth.ca
Matt Lamers Managing Editor 250-271-7064 editor at pipelinenewsnorth.ca
David dyck Reporter 250.782.4888 dcreporter at dcdn.ca
Dan Przybylski Sales 250-782-4888 ext 101 c: 250-784-4319 dcsales at pipelinenewsnorth.ca
Ryan Wallace Sales 250-785-5631 c: 250-261-1143 rwallace at ahnfsj.ca
chetwynd g
Blue Fuel says it hopes to have an Environmental Assessment Certificate grante Fuels project will cost approximately $2.5 billion, and will consist of a plant tha reduced carbon gasoline. By Mike Carter
Janis Kmet BC Sales 250-782-4888 C: 250-219-0369 jkmet at dcdn.ca
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www.pipelinenewsnorth.ca billing: Lisa Smith - Accounting Manager 250-562-2441 ext 352 Fax:250-960-2762 accounting@ pipelinenewsnorth.ca
New Zealand Plant: Blue Fuel Energy proposed to build a massive $3.8 billion natural gas-to-gasoline plant outside of Chetwynd, similar to the one pictured here in New Zealand.
FEBRUARY 13, 2015
PIPELINE NEWS NORTH •
9
on $2.5 billion
gas plant
ed by mid- to late 2015. The first phase of the Sundance at will use natural gas, wind, and hydro power to produce A decision could be made this year on a proposed $2.5 billion gas plant near Chetwynd that would come with up to 300 full time jobs. Blue Fuel says it hopes to have an Environmental Assessment Certificate granted by mid- to late 2015, and it will make a final investment decision by the end of the year. The first phase of the Sundance Fuels project will cost approximately $2.5 billion, and will consist of a plant that will use natural gas, wind, and hydro power to produce reduced carbon gasoline. The large natural gas-togasoline and methanol plant planned for a 1,055-acre site outside Chetwynd is projected to create 1,500 to 2,000 jobs during construction and 250 to 300 fulltime positions once its up and running. The first phase of the Sundance Fuels project will cost approximately $2.5 billion, and will consist of a plant that will use natural gas, wind, and hydro power to produce reduced carbon gasoline. The second phase will be lead by Canadian Methanol Corporation, and will consist of a second plant on the site, using the same natural gas to produce methanol, which will be sold overseas for use in developing plastics, lubricants and
gels. All told, the capital cost of the Sundance Fuels facilities is projected to be in the range of $3 billion to $4 billion. The two companies are independent but will share infrastructure at Sundance. Two hurdles remain for the project: a shortage of local labour, and the lack of a secure source for the natural gas. According to Blue Fuel Energy’s CEO Juergen Puetter, some of the temporary positions may be filled by Temporary Foreign Workers (TFWs). “We may have to [use TFWs for construction]. This is something we are working with our engineering firms on, because we don’t know where we are going to get the people from,” Puetter said in an interview. He also said Site C will make it more challenging to attract a workforce. Blue Fuel’s communications director Alan Bryce admits they don’t have any firm plans yet on a natural gas source. “We are currently in discussion with a couple of potential suppliers,” he said. “That is a key element of the equation, but its not going to be very difficult to solve. People want to get rid of their gas up there.” See CHETWYND on PAGE 28 R001622840
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alberta
courtesy suncor
Less competition helps Fort Hills’ costs decline Suncor Energy Inc. says construction costs are falling at Fort Hills, its $15-billion oilsands mine, as a result of the recent downturn in project spending across the industry. The project is experiencing deflation thanks to lower fuel costs and better productivity from a higher-quality workforce that lives nearby, cutting down on the need to fly workers in from long distances, said Steve Williams, president and chief executive officer, on a conference call to discuss year-end results. Construction of Fort Hills is going very well, said Williams. “The project is 25 per cent complete; it will be 50 per cent complete by the end of this year. All the partners are supporting it, all of the partners have approved the details of this year’s spend and we are seeing what we anticipated, which is improved productivity and quality in the market so you will see us protecting those large strategic growth projects as long as we reasonably can.” Labour has become more available and there are now more than 3,000 workers at the site, he said. “We haven’t put out revised numbers but there is definitely a deflationary pressure in the contracting and construction business at the moment,” he added. All critical 2014 milestones were substantially completed on schedule and, overall, engineering and procurement progress has surpassed 60 per cent, according to plans, he told callers. Detailed engineering activities were approximately 65 per cent complete by the end of the fourth quarter. The majority of long-lead procurement orders have been placed and fabrication is progressing as planned with components starting to be delivered to site. — Daily Oil Bulletin
courtesy MEG
MEG beats production targets MEG Energy Corp.’s annual production for 2014 averaged 71,186 bbls per day, an increase of 102 per cent over 2013 volumes of 35,317 bbls per day, marking the company’s seventh consecutive year of annual production gains. Production rates for the fourth quarter of 2014 increased to a record 80,349 bbls per day from comparative fourth quarter 2013 production of 42,251 bbls per day. MEG had initially targeted 2014 average production volumes at 60,000 to 65,000 bbls per day at a non-energy operating cost of $8 to $10 per bbl. With strong performance in the first half of the year, production targets were later upwardly revised to 65,000 to 70,000 bbls per day. “In the fourth quarter production exceeded 80,000 barrels per day. This puts us ahead of our near-term 80,000 barrels-per-day target, which was planned for early 2015,” Bill McCaffrey, president and chief executive officer, said during the company’s fourth quarter conference call this morning. “With the strong operating performance that we’re seeing, we’re obviously pleased with all the elements of our business that are in our direct control. However, as is the case with the entire industry in Q4, there were challenges from external factors, particularly the dramatic drop in global oil prices.” McCaffrey said that with the successful rampup of Christina Lake Phase 2B and the continuing implementation of MEG’s RISER initiative, the company has built a low-cost production base. “This provides a solid foundation in the current price environment and attractive opportunities in the future,” he said. — Daily Oil Bulletin
Existing oilsands projects expected to plow ahead Although many oilsands developers are cutting their capital budgets, projects well underway will not only survive current and expected low oil prices but will see their costs fall while smaller, nascent projects are delayed and deferred, say industry analysts. There’s no way oilsands mines will shut down regardless of near-term oil prices because their costs are largely fixed and some revenue is better than no revenue, they say. “It’s a fixed-cost game,” Michael Dunn, an analyst with FirstEnergy Capital Corp., told the Daily Oil Bulletin. The projects’ owners would consider shutting down those assets only if they believed the long-term price of oil would be below their cost thresholds, so that the cost of permanently laying off staff and funding reclamation and abandonment liabilities were expected to be less than anticipated future operating losses, said Dunn. In the 1980s, Syncrude Canada Ltd. and Suncor Energy Inc.experienced a few years when oil prices were below their sustaining cash costs but they continued to operate, he noted. According to Dunn, the cost structure in the Athabasca oilsands region has more than doubled in the past 10 years due to factors such as continued salary escalation, labour availability and lower capacity utilization. He expects that while inflationary pressures will recede with lower oil prices, some modest cost-inflation pressures will remain and improved production rates, spreading fixed costs over more barrels, are the only obvious means of offsetting those costs. Dunn provided the Daily Oil Bulletin with his cash-cost comparison between Syncrude, Suncor and Canadian Natural Resources Limited’s Horizon mine. He estimates that Horizon needs a WTI price of around $60 per bbl (US$52 per bbl) to generate positive, free cash flow assuming zero current tax expense before funding dividends and growth projects. — Daily Oil Bulletin
FEBRUARY 13, 2015
PIPELINE NEWS NORTH •
alberta
11
IEA forecasting Canadian oil supply growth In Canada, where much of the capital spending for projects due to come online by mid-2016 has already been committed, a reduction in spending will affect projects that are slated to start up beyond that timeframe, says the IEA
MEG’s Christina Lake facility uses steam-assisted gravity drainage to recover bitumen while minimizing surface impacts on the land.
Richard Macedo Daily Oil Bullletin
Canadian oil production will expand by 810,000 bbls per day to just under five million bbls by 2020, according to an International Energy Agency outlook but low oil prices are hitting its main source for growth — oilsands projects. Offshore projects, too, will see delays and cancellations, the IEA said this morning in its medium-term market report.
In contrast to United States light, tight oil (LTO) projects, Canadian output mainstays are projects with long payback periods, it noted. Although oilsands projects in which companies have already invested will not be deterred by lower prices, the IEA said, new projects are unlikely to be sanctioned and will probably be delayed. Canada’s price sensitivity differs greatly from that of the United States The oilsands, which account for most of Canada’s oil output growth, require
relatively high upfront capital costs and have long lead times. Companies that have already invested in oilsands projects will proceed with them despite lower prices and there will be an incentive to maximize output in a bid to recoup investment costs, the report stated. Once cancelled or postponed, oilsands projects cannot be brought online quickly in response to increasing prices, the IEA noted. See OIL PRICE on PAGE 26 OIL PRICE from PAGE 11
COURTESY MEG
Projects in which firms have already invested will not be deterred, the IEA said. R001697755
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fort nelson Fort Nelson optimistic after Apache sale Once the deal closes it will have Chevron — one of the biggest oil companies in the world — paired equally with Woodside, one of Australia’s biggest LNG producers, on the export project
David Dyck Staf writer
Although no final investment decisions were made in B.C.’s anticipated liquefied natural gas (LNG) export business before the close of 2014, Apache did announce that it would be selling its 50 per cent stake in the Kitimat LNG project to the Australian LNG company Woodside Petroleum Ltd., a deal that could very well have very a significant impact Northern Rockies Regional Municipality. The agreement is expected to be finalized in the coming weeks, but once it closes it will have Chevron — one of
the biggest oil companies in the world — paired equally with Woodside, one of Australia’s biggest LNG producers, on the export project. Apache sold their stake, along with a 13 per cent share of the Wheatstone LNG project in Western Australia, for a total of $3.7billion. Zoher Meratla, a B.C.-based LNG consultant, said that this was a positive move for the province’s nascent LNG industry. “Woodside has international experience in LNG, it has credibility with purchasers, and it’s a major player,” he said. “I can tell you firsthand that Apache is a world class company, they simply don’t have the LNG credibility that Woodside has.”
He said that when it came to buyers, that credibility is “critical.” “Purchasers want to deal with somebody who has done it before, who has the experience in delivering a project on schedule, meeting delivery dates and things like this,” said Meratla. Kitimat LNG was once thought to be the front runner to make a final investment decision, but the project faced a major stumbling block when Apache was forced to sell its shares by activist investors last summer. The project has been approved by the National Energy Board to export up to 24 million tonnes of LNG per year, from a land-based facility on Bish Cove, near the town of Kitimat.
FEBRUARY 13, 2015
PIPELINE NEWS NORTH •
courtesy devon
This project means a lot for the small town of Fort Nelson, in the Northern Rockies Regional Municipality (NRRM), since that is where most of the gas for the project would come from. “We’ve been waiting three years,” said Fort Nelson mayor Bill Streeper. “We have had 30 businesses close in Fort Nelson in the last two years.” With Canfor closing two lumber mills in the town several years ago, LNG is all the municipality has to look forward to. “We are a one-industry town and that industry is natural gas,” said Streeper. “If you go back to some of the original announcements, we should have been producing this year, plants completed,”
he added. “Well, we all know that’s not going to happen.” The mayor said he was sad to see Apache go, and described the town’s relationship with them as second to none. “They do care about communities. We had many meetings on the effect that Apache would have on our community, Apache wanted our opinions,” he said, adding that although he hasn’t met with them yet, he expects the same kind of relationship with Woodside in the future. Streeper agreed that the Australian company’s interest in B.C. LNG was as a good sign. “They’ve got billions and billions of dollars behind them, and they’ve got the people that know what
they’re doing, and there’s something they see, which is going to be good for our community.” Apache announced in August that they were looking to get out of the LNG business altogether, citing pressure from hedge fund group Jana Partners LLC. Since then, they’ve continued to sell off oil and gas assets in Louisiana and the Anadarko Basin. Woodside has made other moves on LNG in B.C., filing another export facility project description with regulators in August of 2014. This facility would be located at Grassy Point, north of Prince Rupert. That project’s fate is unknown. peacereporter@ahnfsj.ca
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final investment decision
$500 million Douglas Channel LNG ‘advancing toward’ FID this year
David Dyck Staff Writer
Things are looking better for oncetroubled Douglas Channel LNG, a proposed liquefied natural gas export facility near Kitimat, now that partners in the consortium officially completed the transfer of ownership. The Douglas Channel LNG Con-
sortium includes AltaGas, Japan’s Idemitsu Kosan Co., Ltd. EDF Trading Ltd., a subsidiary of Electricite de France S.A., and Belgium-based LNG shipper EXMAR NV. Together, they say they are on track to make a final investment decision by the end of this year, and start shipping around 2018. “The project is well positioned to
be an early exporter of LNG off the West Coast of Canada with unique competitive advantages,” said John Rittenhouse, EDF Trading executive, in the press release. The consortium has also made agreements with Pacific Northern Gas Ltd. to pipe the gas to the facility, and Haisla Nation for land and water use.
“The consortium is excited to advance this small scale floating LNG project and is looking forward to a long and mutually beneficial relationship with the Haisla Nation, building on the newly signed longterm land and water lot leases,” said AltaGas president and COO David Harris. The province also expressed their R001962164
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FEBRUARY 13, 2015
PIPELINE NEWS NORTH •
“The consortium is excited to advance this small scale floating LNG project and is looking forward to a long and mutually beneficial relationship with the Haisla Nation.”
approval for the new consortium, stating that this was a positive step in B.C.’s LNG export industry. “The province of British Columbia welcomes today’s news that the partners in the Douglas Channel LNG consortium have completed the transfer of ownership and are moving forward on their proposal,” said Minister of Natural Gas Devel-
R001697743
opment Rich Coleman in a separate release. AltaGas, a midstream company, is known in the Peace as the operator of the younger gas plant in Taylor and the Bear Mountain Wind Park in Dawson Creek. Earlier this year when Premier Christy Clark toured the Peace, she signed a letter of intent with
AltaGas executive John Lowe to use LNG domestically. The company has plans to build small facilities throughout B.C., with the first plant planned for Dawson Creek. AltaGas and Idemitsu are also partners on the much Triton LNG. That proposed project holds a permit from the NEB to export 2.3 mil-
15
lion tonnes of LNG per year. AltaGas has also proposed British Columbia’s first natural gas liquefaction facility for Dawson Creek, which will be for local consumption. Douglas Channel LNG is one of 21 projects that propose liquefying Canadian natural gas and shipping it to Asia. peacereporter@ahnfsj.ca
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DLR# 10839
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fort st. john
Airlines mull new service for Fort St. John has been selected as a possible location for a new low-cost flight service to Vancouver, while Dawson Creek and Hawkair have entered into talks on adding a daily flight to Calgary
Fort St. John <> Vancouver
Currently, there are two carriers — WestJet and Air Canada — that fly to Vancouver from Fort St. John. Jetlines flight map includes locations in California, Cabo San Lucas in Mexico, and locations in Florida. William Stodalka Staff Writer
Fort St. John has been selected as a possible location for a new lowcost flight service to Vancouver. It remains to be seen if this will actually leave the hangar, since the airline in question isn’t in possession of its airplanes yet. In December, the fledgling company signed a purchase agreement to buy 21 planes for Canadian flights. This week Canada Jetlines put out a map detailing the air corridors it wants to service — and Fort St. John was on the list.
Canada Jetlines hopes to begin flying sometime this year. There are seven locations on the map in B.C. Canada Jetlines would fly straight to Vancouver from Fort St. John, but not directly to any location in Alberta. A flight from Prince George would go to Edmonton, then Fort McMurray. The company “plans to offer base airfare below the base airfares of major existing carriers in Canada,” their website states and “where possible (Jetlines plans to) use non-major airports in Canada to attract new passengers.” “Jetlines intends to select routes which avoid direct competition
with existing carriers in Canada and focus on cost discipline in order to keep operating costs low,” their website also states. Questions sent to Jetlines asking about their decision to put Fort St. John on its list were not returned as of press time. Currently, there are two carriers — WestJet and Air Canada — that fly to Vancouver from Fort St. John. Jetlines flight map includes locations in California, Cabo San Lucas in Mexico, and locations in Florida. Jetlines is currently devising a financing plan. reporter@ahnfsj.ca
FEBRUARY 13, 2015
PIPELINE NEWS NORTH •
dawson creek
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Fort St. John and Dawson Creek
courtesy jetlines
Mike Carter Staff Writer
The City of Dawson Creek and Hawkair have entered into exploratory talks on adding a daily flight to Calgary from the Dawson Creek Airport. High-level meetings with industry officials in Calgary, who have displayed significant interest in having the flight, are in the works and are likely to happen in a month to six weeks. “We’re in early stages right now,” Hawkair president Jay Dilley said in an interview with the Alaska Highway News. “We’re reviewing the viability of doing a Calgary to Dawson flight. What we’re trying to do is we’re trying to build support for that route. If we can gather enough support for it in the way of presales than we’ll go to launch.” Dilley says that interest for a flight to Calgary from Dawson Creek exists among oil and gas companies
Dawson Creek <> Calgary
operating in the area. The company will target them first for presales. Mayor Dale Bumstead said talk of a flight to Calgary first arose during a mayor’s roundtable meeting last fall. “It was really evident from the discussions in that event from the industry folks that they would really like to have a flight from Calgary to Dawson Creek because of the difficulties they find in transporting their employees when they fly into Grande Prairie or Fort St. John,” Mayor Bumstead said. Bumstead acknowledged that he and councillor Terry McFadyen have been in ongoing discussions with Dilley about the possibility of the flight. “It’s certainly something we’re focusing on and trying to build for the community,” he said. “We see it as an opportunity to create increased business traffic into our community as well as for those people that are trying to get to Calgary to connect
for holidays — it’d be a great flight to have.” Bumstead notes it’s encouraging for the city to see a growing interest in the airport. Once enough firm support has been gathered from the big players in industry, Hawkair would then move towards gauging interest from the public for the flight through presales. Dilley estimates that presales could open in as little as three months. “It could move very quickly if industry gets on board and it might be a bit slower if it takes longer. Possibly sometime in the spring we would look at [opening presales],” Dilley said. “The alternative is nothing happens because there is no interest. But, from what we understand there is significant interest in going to Calgary especially for the industry guys.” dcreporter@dcdn.ca
“It was really evident from the discussions in that event from the industry folks that they would really like to have a flight from Calgary to Dawson Creek.”
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FEBRUARY 13, 2015
kitsault
LNG in B.C. gets first final investment decisi
Proponent of Kitsault Energy, a proposed 20 MTA LNG in B.C. project, says the final decision has been mad Construction is planned to begin in 2016, with the first shipment made in 201
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The proponent of Kitsault Energy says he’s already made a positive final investment decision on his $10 billion LNG project. The Kitsault facility would have an advantage over those further south. Rather than piping the extra kilometers down to Prince Rupert or Kitimat, at a cost that he estimated to be $2 to $4 billion more, the pipeline could end at Kitsault Energy. Above, a lake in Kitsault.
FEBRUARY 13, 2015
de, but he added some caveats. 18
courtesy kitsault energy
The proponent of Kitsault Energy says he’s already made a positive final investment decision — what would be the first in British Columbia — for his proposed 20 MTA project in the onceabandoned village of Kitsault. But the proponent admits the decision comes with some major caveats. Sales contracts have yet to be announced, regulatory work is far from being completed, no environmental assessments have been conducted for LNG facilities and no deals have been reached with local First Nations. There’s no pipeline or export license, either. If it sounds far-fetched, that’s because owner and entrepreneur Krish Suthanthiran says the dynamics at play when it comes to making a final investment decision for Kitsault Energy are different than other proposed LNG projects. “I’m an entrepreneur, a private owner,” he said. “Unlike other publicly held multi-national, multibillion dollar public companies, we already have a place, we already have resources, so that’s a big, big start for us, whereas all of them are trying to find a place.” He referred back to the beginning of January of this year when China’s CNOOC Ltd. decided on a Digby Island location near Prince Rupert for their export facility. Aside from meetings with the Niska’a First Nations and attending some leadership election conferences, he hasn’t started negotiating with First Nations in earnest. “First Nations groups are not necessarily monolithic, there’s a lot of diverse views, so you have to work with each one of them, not just collective,” said Suthanthiran. In the crowded field of proponents who hope to liquefy and export Northeast B.C.’s natural gas, his project is unique in a number of ways. Suthanthiran bought the empty town in 2005. At the time, he didn’t think of it as an LNG export facility. It has been abandoned since 1983, but Suthanthiran said the existing infrastructure and location of the site gives it an edge over the others. He decided to move ahead with his plan to ship LNG out of the abandoned mining town two years ago. He says he’s certain it’ll happen, but he still has a long way to go. How far along is the project? It has made progress in the past year. Suthanthiran said he has identified offtakers for the product in Asia, and he’s drummed up interest from parties he said can finance the pipeline that would deliver the gas to the coastal facility. Now he’s working towards
21
making partnerships with upstream sources in western Canada, and said he hopes to meet with the Calgary mayor and Alberta premier as well as some of the industry leaders in that province. “Our goal is to bring a pipeline from Fort Nelson or Dawson Creek or Chetwynd so we can pick up the gas from Alberta . . . and B.C. to the coast,” he said. In terms of who would build the pipeline, Suthanthiran said he is looking to get Spectra or TransCanada on board. “They have an agreement in place with First Nations along the pipeline route, and they already are in the permit process for a multiple pipeline corridor,” he said. Davis Sheremata, from TransCanada’s External Communications and Media Relations department, said the corporation has no agreements in place with Kitsault Energy at this time. The Kitsault facility would have an advantage over those further south. Rather than piping the extra kilometers down to Prince Rupert or Kitimat, at a cost that he estimated to be $2 to $4 billion more, the pipeline could end at Kitsault Energy. Once he lines up his upstream partners to get the gas out of the ground, his pipeline built to transport it, and his first floating LNG (FLNG) facility up and running in his own deepwater port, he expects the cost to be $10 billion. One FLNG facility is capable of liquefying 5 million tonnes of LNG per year. “To go to 20 million tonnes per year we’re looking at $20 billion investment,” he said. “And if I have to go to 30 million tonnes per year, then we’re looking at $30 billion.” Construction is planned to begin in 2016, with the first shipment made in 2018. “If you look at some of the other plants that are looking at 2020 and 2023, I think that we will be well ahead of that,” he said. Asked when he was going to apply for his Environmental Assessment, he said he was confident that many of the previous environmental studies done in the Kitsault area would pave the way. “Kitsault has already been studied many, many times because of the mine,” said Suthanthiran. “Also the government of Canada has studied the environmental impact of a potential port site, so we have a lot of stuff already that we can use.” Suthanthiran is optimistic that his near-empty village gives him a major advantage. “What we have in fact is not just a campsite, we have really attractive housing. We will attract some really high quality talent, people that would like to live there longterm,” he said. Spectra did not return calls as of press time. peacereporter@ahnfsj.ca
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“If you look at some of the other plants that are looking at 2020 and 2023, I think that we will be well ahead of that.”
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FEBRUARY 13, 2015
business
TransCanada looks to
local contractors
Scott Bone, TransCanada’s local contract representative, speaks at a Fort St. John Chamber of Commerce meeting earlier this week. He was in town to explain the process for hiring local contractors once construction begins on the four proposed pipelines in the area. DAVID DYCK photo
David Dyck Staff Writer
TransCanada’s local contract representative Scott Bone was at the Fort St. John Chamber of Commerce lunch to give a timeline of the projects and inform subcontractors how to get involved. The two big pipelines are the Prince Rupert Gas Transmission (PRGT) project, which would run from near Hudson’s Hope to Prince Rupert, and the Coastal GasLink project, which would run from Dawson Creek to Kitimat. The final investment decision (FID) for the PRGT is expected to come in this year, while the green light for the Coastal GasLink is expected for early 2016, said Bone. But as soon as that is, there’s some other work to be done first. Before any local companies will start getting those contracts, however, TransCanada will first be hiring three prime contractors, multinational firms that are responsible for the construction of the pipelines.
“Any prime contractor that wants to bid on a TransCanada contract requires in their bid document to include details around their aboriginal and local participation program,” said Bone. “These plans describe how the contractors will identify and use the local business capacity.” Once the prime contractors are selected, TransCanada will work with them to review exactly how they will incorporate local business into their construction. They will be required to provide TransCanada with regular reports of how many local businesses are involved. “That information will be useful to us and also the communities to understand if we’re meeting our requirements,” said Bone. “Every time they give you a little bit more information and every time they have anything a little bit new to say, they’re really good about letting you know,” said Bennett McGuire, the South Peace Operations Manager for D-Tech Line Locators, who attended the
talk. “They’ve gone from ‘this is what we’re hoping’ to ‘this is what we’re doing’ and now they’re actually saying, ‘This is when we know our prime contractors are going to be awarded and this is who you go talk to to get the business.” McGuire said that his company would be working with the primary contractors. TransCanada itself doesn’t take resumes for the pipeline projects, but it is working on collecting a database of northern B.C. businesses. “Once we’ve gathered all that information we’ll go ahead and share that with our prime contractors once they’re selected so that the prime contractors can look into a community like Fort St. John and say, ‘I need welding services, I need pipe valves or I need security services,’ and they’ll be able to identify the companies as a profile of that work through that information that we’re gathering,” explained Bone. peacereporter@ahnfsj.ca
“Once we’ve gathered all that information, we’ll go ahead and share that with our prime contractors once they’re selected so that the prime contractors can look into a community like Fort St. John ...”
FEBRUARY 13, 2015
PIPELINE NEWS NORTH •
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fort st. john
Alliance president talks up
LNG in Fort St. John
David Keane, the President of the B.C. LNG Alliance, was a featured speaker at a Northeast B.C. Resource Municipalities Coalition meeting.
William Stodalka Staff Writer
David Keane, the President of the B.C. LNG Alliance, believes that liquefied natural gas opportunities will “constitute the largest investment ever seen in this province.” Keane was a featured speaker at the Northeast B.C. Resource Municipalities Coalition meeting in Fort St. John last week. Liquified natural gas is a method of cooling down natural gas to easily compressed liquid form to carry it over long distances. Many of Keane’s business partners in the Alliance are hoping to create projects like these, but
some analysts have cast doubts on all of these projects going through. Keane, however, remained optimistic. “I have seven members, so I’ll say seven (projects will realistically go through).” Even though this may happen, there are still some questions that Keane’s group wants answered. One of them is the regulatory environment in B.C. “In terms of the fiscal structure, we need more clarity and certainty around the LNG tax,” he said. “We know what the tax rate is, but we don’t know what’s included in the tax – what’s deductible, what’s not, etc. “
LNG from PAGE 7 NewTimes anticipates there will be multiple export arrangements. NewTimes joins the ranks of Kitsault, WesPac, Steelhead and Cedar LNG, which have applications to export LNG from B.C.
Other factors that would need to be addressed would include, with provincial help, how many people to train in what areas, he added. “We need to strike the right balance, to receive fair value for the sale of natural resources, while recognizing enormous technical and financial challenges of projects,” he said. “B.C. will be a supplier to many of the large, not only Asian countries, but European countries… (LNG buyers) will want to diversify their risk, and I think British Columbians will have a significant portion of that supply base.” reporter@ahnfsj.ca
coast under review by the federal body, while 11 others have been granted licenses. There have been several new entrants to the LNG export scene in the past several months, but so far no final investment decisions have been made by any of the 19 proponents. Most experts predict that a small number of
WILLIAM STODALKA photo
“B.C. will be a supplier to many of the large, not only Asian countries, but European countries… (LNG buyers) will want to diversify their risk ... ” the projects will ever be built. Tanking oil prices in North America, plunging LNG prices in Asia and fierce competition in the global LNG arena are challenging the economics behind British Columbia’s nascent LNG industry. peacereporter@ahnfsj.ca
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FEBRUARY 13, 2015
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Northern Gateway gives $250,000 to college David Dyck Staff Writer
Northern Gateway announced that it will be investing $250,000 in the College of New Caledonia (CNC) in Prince George, to go towards educational programming. The funds will allow rural students in remote and Aboriginal communities the opportunity to take classes without having to travel to a main campus, through the Digital Delivery Initiative (DDI). The DDI will facilitate real-time lectures from instructors, and allow students to interact with each other and instructors from across campuses. “The success of the DDI relies on partnerships with local schools,
industry and business,” said CNC president Henry Reisner in a press release. “Northern Gateway’s contribution is an investment toward better futures for learners in northern B.C.” CNC has six campuses in the central interior of B.C., with the main campus located in Prince George. Northern Gateway has invested over $4.2 million to support skills training and community benefits programs since 2012 according to Catherine Pennington, Northern Gateway’s Senior Manager for Community Benefits and Sustainability. “Northern Gateway has directly invested in more than 115 skills training and capacity development programs along the corridor since 2012 alone,” read the release.
FEBRUARY 13, 2015
PIPELINE NEWS NORTH •
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NORTH PEACE
reporter@pipelinenewsnorth.ca
Fort St. John Oilmen
discuss health & hockey
Petroleum Association President Sean Thomas speaks at a meeting. The association is planning their first event of the year, the hockey tournament, scheduled for April 1 to 4. DAVID DYCK photo
David Dyck Staff Writer
The Fort St. John Petroleum Association met last week for their monthly meeting at the Fort St. John Curling Club to talk about the coming year, and listen to Dr. Kimberly Ostero, a local naturopathic doctor, talk about men’s health. Nearly 70 members braved the blustery winter conditions to enjoy drinks and dinner. The oilmen are getting ready for their first major event of the year, the hockey tournament taking place April 1-4. President Sean Thomas warned that because it falls on Easter long weekend, there’s a possibility that turnout will be lower. He urged members
who have already signed up to double check they would be able to attend, or let the executive know if they would be gone. Thomas also encouraged anyone who was interested to apply, even if entry forms are submitted late. “You never know, there might be a late entry into the tournament if there is a shortage [of players],” he said. Thomas brought in Ostero to discuss the importance of men’s health. “We can look around the room, and just with the nature of the business, the long hours, a lack of daylight and a little bit of everything like that— stress — we all share it,” he said. “It’s something to think about guys, we’re providing for families, we’ve got long legacies we want to
leave behind, so take care of yourselves, be healthy — a picture of health, like myself,” he joked. Ostero discussed the importance of eating, exercising, and living well, as well as getting check-ups regularly. Thompson said that with the doctor shortage in Fort St. John, he wanted to get as much information to the membership about healthy living as he could. “With the physician crisis we’ve got going on, it’s great that people like Kim will come up here and start a practice and find an alternative way to be able to look after people,” said an attendee. Next month’s meeting will be held at the Lido Theatre on March 5. peacereporter@ahnfsj.ca
“We can look around the room, and just with the nature of the business, the long hours, a lack of daylight and a little bit of everything like that— stress — we all share it. It’s something to think about.”
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FEBRUARY 13, 2015
alberta
Keystone will survive: Jim Prentice “It needs to be said that we have a lot of support down here. We have a lot of public support. Some people have quantified the public support as being close to 70 per cent of the American public.” Carter Haydu
Daily Oil Bulletin
While he anticipates the White House to veto the Keystone XL bill that recently passed the U.S. Congress, Alberta Premier Jim Prentice says the pipeline will likely come back before President Barack Obama in the foreseeable future, attached to some other legislation. “I continue to believe the president will do what he said he would do, which is veto a bill, but I must say that after everyone we have spoken with in Washington, there is sort of an inevitability that if the president vetoes the bill, then the whole Keystone
thing will be put back before him attached to some other measure in the coming months,” Prentice told a media conference call from Washington. The premier was in the U.S. capital this week meeting with American legislators, administration officials, and representatives from the banking, energy and environmental policy sectors. He also has speaking engagements at the U.S. Chamber of Commerce and the Foreign Policy Association. According to Prentice, he does not intend to insert himself into the U.S. “political dynamic” regarding the Keystone XL pipeline debate. Rather, his job south of the 49th parallel is to ensure that
Americans are aware of the integrated nature of the North American energy economy, as well as Alberta’s strong environmental record as an energy producer. “It needs to be said that we have a lot of support down here. We have a lot of public support. Some people have quantified the public support as being close to 70 per cent of the American public supporting the Keystone XL pipeline. We have increasing bipartisan support in the Senate and House of Representatives, and this is all positive.” He added: “I’ve spend a lot of time in Washington over the last 10 years, and if the Keystone debate has done nothing else, I think it has really focused public
attention on what we are doing in Alberta and the nature of our economy, the energy industry, and the fact we take a lot of pride in our environmental record.” However, Prentice said his Washington trip is about more than Keystone XL. He is also discussing the overall integrated nature of Alberta’s economy with that of the U.S., as the province accounts for 25 per cent of America’s oil imports. Further, two-thirds of foreign investment into Alberta comes from the U.S., as does 60 per cent of tourism into the province, Prentice said. “This is a long-term relationship that is about more than a single pipeline.”
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With their long payback periods, oilsands projects also are on the opposite end of the price-sensitivity spectrum from LTO producers, it said. In aggregate, Canada’s oil output is expected to grow steadily to just under five million bbls per day in 2020, up 810,000 bbls per day from 2014. However, lower prices reduced the Canadian supply outlook by about 430,000 bbls per day from the IEA’s last report. In-situ production of bitumen and synthetic crude will lead growth, with the former accounting for an evergrowing share of oilsands output although a number of mined bitumen projects, including Phases II and III of Imperial Oil Limited’s Kearl project, also will contribute. In 2014, oilsands production accounted for more than 50 per cent of Canada’s total output and the IEA expects the proportion of bitumen to rise to about 60 per cent by 2020. Natural gas liquids are forecast to grow to 750,000 bbls per day in 2020 from 650,000 in 2014. The increase in NGLs comes amid an expected decline in natural gas output through 2016. Producers will continue to focus on the liquids-rich Duvernay shale play in Alberta as they struggle
2015-02-04 12:50 PM
to meet the need for diluent for oilsands production, said the IEA. Ethane production in Canada is expected to decline in 2015, but small increases are expected throughout the forecast period. Canada’s ethane production will be limited by cheaper ethane produced in the United States. Although Canada’s NGL growth pales in comparison to that of the United States, it will remain one of the largest NGL producers in the world. While oil prices play a major role in Canada’s production outlook, a lack of export infrastructure may also pose constraints to growth, the report suggested. Particularly in the case of light synthetic oil, producers will need to secure new market outlets and alternatives to shipping light crude south to the United States. These alternative options include additional capacity to ship crude to Canadian refineries on the Atlantic coast or moving it to British Columbia for possible export to Asia. Canadian E&P capital spending on liquids is forecast to decline in 2015 to US$79 billion, before increasing in each of the following years through 2020, according to Rystad Energydata published in mid-January 2015.
FEBRUARY 13, 2015
Oil price increases good, but still too low: premier Oil prices rose on in early February, with benchmark Brent crude up as high as $55.62 per bbl during volatile trading, which had some investors suggesting the rally put a bottom to the seven-month long rout on the market, although other investors remained pessimistic. Prentice is encouraged by these recent increased commodity prices, but the premier told the media conference call that those price levels are still quite low and leaves a substantial hole in terms of Alberta’s finances. “While $50 oil is better than $40 oil, this still produces a deficit that is fairly sizeable in terms of the Alberta government’s budget going forward for 2015-16 and beyond,” he said, adding bank and
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energy analysts have advised the province that oil prices would remain fairly low for the next year or two. “I don’t think the brief rally we have seen at this point changes the fundamentals of Alberta’s public finances. We still face a fairly sizeable deficit, and we are going to have to look at a set of balanced measures to deal with that.”
bbls per day in 2020 from 650,000 in 2014. decline in natural gas output through 2016. Planned investments in oilsands projects are expected to drop sharply to US$37 billion before reaching US$88 billion by the end of the forecast period. The drop in investments in the near-term is price-driven as companies cope with oil prices around $50 per bbl. However, Rystad assumes a rebound in prices in 2016 and beyond, leading to an increase in capital spending. Non-OPEC supply growth weakens on lower oil prices The collapse in oil prices since June 2014, compounded byOPEC’s move to suspend its role as swing supplier has forced large-scale revisiting and reprioritization of spending plans across the industry, resulting in lower production growth over the forecast period than previously expected, said the IEA. Overall, non-OPEC supply growth is now expected to be about 2.8 million bbls per day lower than was forecast last year. OPEC’s embrace of market forces has greatly changed expectations of future prices and producer behaviour, even as the price crash and signs of weak demand growth have put an immediate strain on companies’ budgets,according to to IEA. Industry participants will respond differ-
ently to these changed circumstances based on a variety of factors including the specific costs and economics of their projects, the broader makeup of their asset portfolio, and their access to capital, the IEA said. While North America will continue to be the backbone of non-OPEC supply growth in the next six years, lower prices are slowing down investment across the board. Non-OPEC production growth is expected to average roughly 570,000 bbls per day annually though the forecast period. That’s a dramatic slowdown compared with growth of about 1.9 million bbls per day in 2014, an exceptional year in terms of non-OPEC output increases, and down from average growth of one million bbls per day in 2010-2014. The recent drop in drilling activity across many non-OPEC producers coupled with announced capital spending reductions is a harbinger of the impending slowdown in production growth, the IEA said. The downturn in drilling has been particularly evident in the United States, where the number of rigs dropped by more than 200 in the fourth quarter of 2014.
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FortisBC gets LNG contract Tyler Orton
Business in Vancouver
Company to supply BC Ferries with 300k gigajoules of LNG for vessels
FortisBC has finalized an agreement with BC Ferries to provide three new vessels with liquefied natural gas over the next 10 years. The utilities provider announced Feb. 2 it would supply 300,000 gigajoules of LNG — or the energy equivalent of 7.8 million litres of diesel fuel — to the ferry service beginning next year. It is believed that the natural gas
will come from Northeastern B.C., in and around Dawson Creek and Fort St. John. The LNG will come from an expanded Tilbury facility in Delta and the Mt. Hayes facility on Vancouver Island. It would take three Olympicsized swimming pools to hold 7.5 million litres of water. The first of the three new ships is expected to enter service in August 2016, replacing the outgoing Queen of Burnaby and Queen of
Nanaimo. The Queen of Burnaby serves the Comox-Powell River route, while Queen of Nanaimo serves the Tsawwassen-Gulf Islands route. The third vessel is expected to be delivered by February 2017 and will help service along the Tsawwassen-Gulf Islands route. All three are being built in Poland and have dual-fuel capability, allowing them to run on both LNG and diesel. The entire project is slated to
cost $252 million, which includes $51 million allocated to cover taxes and federal import duties. FortisBC is providing $6 million in incentive funding for the project — about 2.3 per cent of the total cost. BC Ferries told Business In Vancouver last July that it spent $126 million on diesel fuel in 2013, but internal number-crunching indicates it could cuts those costs in half by relying on LNG. torton@biv.com
courtesy BC Ferries
CHETWYND from PAGE 9 To address the shortage of local labour, CEO Peutter noted that the company is working on a construction design that would see much of the plant built outside of the region, and then transported and installed on site. Whether this will bring down the construction job estimates is unclear at this time. But certainly, constructing parts of the project outside of the province will have an impact. “We’re working on getting as much manufacturing done elsewhere because we don’t know where we are going to get the people from,” Puetter said. “There are many variables. We don’t know exactly how we are going to handle that one yet.”
Everything else, from permitting with the Oil and Gas Commission to First Nations engagement and support from the District of Chetwynd, are a showing good signs for the project moving ahead. The plant is currently in the permitting stage with the provincial government, and Blue Fuel is working closely with the Oil and Gas Commission, the Agricultural Lands Commission, Canadian National Rail and the District of Chetwynd. Chetwynd Mayor Merlin Nichols has thrown his support behind the project. The company has a Memorandum of Understanding (MOU) in place with the West Moberly First Nation, which allows “both parties to explore additional opportunities and commercial benefits arising from the prospective production of renew-
able hydrogen and gas-derived liquid fuels on West Moberly First Nation’s traditional territory.” The project has also been given what the company terms “broadbased” support among other Treaty 8 First Nations in the region. Puetter notes that similar MOU’s are close to being completed with the Saulteau First Nation and the McLeod Lake Indian Band. The negotiations are quite positive, Puetter said, because there are opportunities there for First Nations owned spin-off businesses. “One that is particularly suitable for the First Nations is, we will be giving them free hot water for greenhouse growing operations.” Blue Fuel commissioned a study to review the feasibility of using the plant’s wastewater to heat greenhouses to grow crops year round.
“ I can stand here and say it’s a wonderful opportunity sure – but now we have a third party doing the analysis and it came back better than we anticipated,” Puetter remarked. “It’s a very elegant way of taking what is a waste byproduct and making it into something that is green, clean and renewable.” The Sundance Fuels plant will draw water directly from the Pine River, just downstream of its confluence with the Murray. At this point, 800 million cubic metres of water per year is available for industry or agriculture, which is about 10 per cent of the river’s flow. Sundance will use 203 per cent of this. Construction of the plant is estimated to take two and a half years. Initial production is projected for late 2018. dcreporter@dcdn.ca
FEBRUARY 13, 2015
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FEBRUARY 13, 2015
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A & u t V o R l S a u u p n e n r A Sale 3
Dawson Creek’s
rd
March 5 - 8
encana
300 Highway 2 Thursday/Friday: 10am-8pm • Saturday: 10am-7pm • Sunday: 10am-4pm
No Double-Talk Bull$#!t!
No BULLY SALESPEOPLE
No BULL PRICING Check out the 2015 model lineup
Your “No Bull” Dealership
2015 Venza From
$29,610
2015 Camry From
$23,850
2015 Rav4 From
$24,065
2015 Tacoma
2015 Sequoia From
From
$53,885
$23,985
2015 Highlander
2015 4Runner From
From
$38,660
$32,375
2015 Corolla
2015 Sienna From
From
$30,690
$15,995
2015 Tundra From
$27,345
A & u t V o R l S a u u p n e n r A Sale 3
Dawson Creek’s
rd
March 5 - 8
encana
300 Highway 2 Thursday/Friday: 10am-8pm • Saturday: 10am-7pm • Sunday: 10am-4pm
0 DOWN
$
Dealer #31206
KZ-Sportsmen
KZ-Sportsmen
86.88 b/w
$
stk# R11895
stk# R11858
stk# R11790
270VBH
172.22 b/w
WZ5BF368
stk# R11854
Hemisphere
W25BT300 stk# R11872
$
Springdale
267BBHSS stk# R11842
Sport Trek
109.14 b/w
$
90.59 b/w
$
202SRRSS
Radiance
22RBDS
5.99% Interest
o.a.c
Dawson Creek • 250-782-2722
242BHSS
+ all taxes in
V521KS
213.02 b/w
FZ371
stk# R11857
Hemisphere
stk# R11888
$
109.14 b/w
Viewfinder
127.70 b/w
$
$
$
127.70 b/w
Fuzion
stk# R10145
335.49 b/w
$