|
Alberta-Alaska link gets prod; feasibility study in the works
Promoters of a rail-and-pipeline connection from the Alberta oil sands to Valdez are about to launch a feasibility study of the C$34 billion venture to move about 1 million barrels per day of bitumen for export to Asia, starting in 2020.
Matt Vickers, chief executive officer of G Seven Generations, told an Arctic Oil & Gas symposium in Calgary that the first stage will be early engagement with aboriginal communities along the proposed rail route of almost 1,500 miles.
He said that to date there has been strong backing from indigenous peoples, with Canada’s influential Assembly of First Nations endorsing the concept.
”If you don’t have early engagement at that level - regardless of whose land you’re on or where you are in the world - I don’t believe the project is going to work,” Vickers said.
A preliminary study released by the independent Van Horne Institute concluded that with a C$1.8 million grant from the Alberta government, the idea has merit.
Route study to get underway The detailed feasibility study that will narrow down the rail’s exact route is scheduled to get underway by early spring, with the company undertaking an aerial survey.
The trains would carry heated bitumen, which would allow a relatively straightforward cleanup in the event of a spill, Vickers said.
He said the substance would come out of the tanker cars like molasses and could be cleaned up with shovels.
The regulatory review process would be different from pipelines crossing provincial borders, with the lead role in Canada being played by Transport Canada rather than the National Energy Board, while the Alaska segment would be handled by United States authorities.
Vickers said the Alaska governor and Valdez mayor are both keen on the plan, which should help avoid the headwinds encountered by TransCanada’s Keystone XL system.
Yukon Energy, Mines and Resources Minister Scott Kent agreed that the permitting process should be less complicated that what keystone experienced.
“There’s not as many landowners as you’d find in a project like Keystone XL,” he said.
“But that said, all of these projects would require environmental screening and have to undergo that scrutiny so that we can manage any environmental risks.”
- GARY PARK
| 