A strong start for 2018 North & South of the US
Looking north of the US into Canada major projects are moving forward for oil and gas. I list of few projects listed.
Kinder Morgan Canada expansion will cost $7.4 billion for the Trans Mountain Pipeline. The construction was delayed beginning last September 2017 due to permits approval. It would move the completion of the project to September 2020. Clarification to obtain key permits and approvals to move forward with the project will still need to be review first part of 2018.
Inter Pipeline is moving forward with the construction of a new $3.5 billion facility, that will convert about 22,000 bbls/d of propane into 525,000 tons per year of polymer grade propylene. The facility should be operational by the end of 2021.
Canadian Natural Resources restarted in 2016 the development of a oilsands growth project “Kirby North Phase 1”. Construction is underway on the 40,000 bbl/d projects, a new expansion to the 40,000bbl/d Kirby South facility. The total cost of the project was estimated at $1.4 billion, half of the cost has been invested the remaining cost has been revised to $650 million with an unexpected 100 million plus cost saving.
Imperial Oils is planning to expand its capacity facility from 220,000 to 240,000 bbls/d for the Kearl oilsands mine. The $550 million project will provide additional crushing capacity to continue to operate during equipment downtime.
The construction of the new Ridley Export Terminal to export propane from Canada’s west Coast is underway, the terminal will export 1.2 million tons of propane per year by early 2019. The cost of the project is approximately $500 million. AltasGas signed an agreement with LPG Shipper Astomos Energy Corporation a Japanese company, to purchase over 50 percent of the propane.
South of the border, changes in Mexico energy reform is starting bearing fruit, the country needs to do more to meet future demand. Infrastructure, supply and transparency needs to be happening to be competitive in the market. In eastern Veracruz state, Cotemar is looking to invest $100 million in both blocks Paso de Oro and Cuichapa. Cuichapa is currently operational producing 3,000 bpd, Paso de Oro has entered production last September. Each site is expected to produce by year-end 10,000 bpd.
COSCO Shipyard Group Co. Ltd, has secured the $200 million contract to build a semi-sub accommodation rig. for Mexico’s Cotemar S.A. It is expected to be delivered within 24 to 30-month time.