Council Meeting Date: Dec. 11 2007
Agenda Item #: 8.1
ECONOMIC DEVELOPMENT UPDATE
Report Purpose:
To provide Council with an update on the Kinder Morgan proposed Heartland Sulphur Forming
and Handling Terminal Project
Recommendation:
THAT Council receive the update on the Kinder Morgan Heartland Sulphur and Handling
Terminal as information.
Background/Justification
Governance
Community Sustainability x
Service Delivery
Community Well Being X
Resource Management x
Economic Viability X
Stakeholder Communication X
Legislative and Legal:
Building and Development Permits are required plus referral to the Energy and Utilities Board
(EUB) and Alberta Environment for regulatory approval.
Economic:
Kinder Morgan Canada Terminals ULC is proposing a regional solution for the increased
sulphur productions as a result of the Upgrader announcements in Alberta’s Industrial
Heartland. This $60 million project (estimated) will, subject to regulatory approvals and
construction, start operating in 2010 with phased expansions to accommodate future production
increase.
Social:
The two projects are looking to employ over 16 full time employees and over 50 construction
jobs.
Environmental:
This project will take place in an environmentally sound manner following rules and regulations
from the province and Strathcona County. They will have a public consultation process with
local residents and key stakeholders.
Stakeholders:
Groups who will have in interest in this project include:
Province of Alberta
Local residents
Canada
Local regional service and construction firms
Alberta’s Industrial Heartland
Interdepartmental:
Engineering, Planning and Development Services, Public Works
Summary:
EDT is pleased to work with Kinder Morgan to present an update on their expansion plans.
Author: Gerry Gabinet, Manager, Economic Development and Tourism
Associate Commissioner: Denise Exton, Infrastructure and Planning Services
Document #: Economic Development
Document #: Economic Development Tourism.0530.14461.1
Created/Revised: December 4, 2007
Created by: White, Janice
Nov.30, 2007
Kinder Morgan Canada
Terminals
Sulphur Proposal
Concept for Consolidated
Sulphur Handling in Heartland
December 11, 2007
Agenda
Introductions
Profile of Kinder Morgan
The Heartland Terminal:
“The Industry Sulphur Forming and Handling Solution”
Kinder Morgan
One of the largest midstream energy companies in North America
• Over 65,000 kilometres of natural gas, crude oil
and product pipelines
– 6,500 employees
• Largest independent terminal operator in North
America
– 154 terminals
• Largest CO2 pipeline operator in North America
Assets
Trans
Mountain
NGPL (KMI)
NGPL GAS STORAGE (KMI)
2
GAS-FIRED POWER PLANTS (KMI)
PRODUCTS PIPELINES (KMP)
PRODUCTS PIPELINES
TERMINALS (KMP)
TRANSMIX FACILITIES (KMP)
Cochin
2
Express
Pacific
Horizon
Trailblazer
North
REX
CALNEV
Pacific
2
REX
2
KMIGT
TransColorado
2
2
2
Northern
2
3
2
Platte
3
2
2
NGPL
KMCO2
SACROC
Wink
Yates
MEP
Claytonville
KMTejas
KMTP
2
3
2
2
4
2
2
Plantation
Cypress
5
75
KMLP
4
4
Central
Florida
NATURAL GAS PIPELINES (KMP)
NATURAL GAS
STORAGE (KMP)
NATURAL GAS
PROCESSING (KMP)
ROCKIES EXPRESS PIPELINE
IN-SERVICE (KMP)
ROCKIES EXPRESS PIPELINE (KMP)
KM LOUISIANA PIPELINE (KMP)
MIDCONTINENT EXPRESS PIPELINE
(KMP)
CO2 PIPELINES
(KMP)
CO2 OIL FIELDS
(KMP)
CRUDE OIL PIPELINES (KMP)
TERMINALS (KMP)
MATERIALS SERVICES (KMP)
PETROLEUM PIPELINES (KMP/KMI)
PETROLEUM PIPELINES
TERMINALS (KMP/KMI)
NUMBER OF
(2,3,8)INDICATES
FACILITIES IN AREA
KM HEADQUARTERS
Kinder Morgan in Canada
Pipeline Business
•
•
•
•
•
Formerly Terasen Pipelines
Trans
Trans Mountain
Mountain
Headquartered in Calgary
– Offices throughout Alberta and
British Columbia
– Over 50 years of pipeline
operations experience
Operates 2 major pipeline systems
– Liquid-petroleum products
from oil-producing areas to
markets
Trans Mountain system being
expanded
– 35,000 bpd – Expansion 2007
– 40,000 bpd – Expansion 2008
– 80,000 bpd – In discussions
with customers for post-2008
expansion
Express System
– Major expansion to Gulf Coast
being considered
Express/Platte
Express/Platte
Kinder Morgan in Canada
Terminal Business
•
•
•
•
Kinder Morgan Terminals is
the largest terminal operator
in North America
Goal to become largest
terminal operator in Canada
– Potential to invest
$1Billion by 2010
North 40 Project currently
under construction
Recently purchased
Vancouver Wharves
Proposed Heartland
Regional Sulphur
Terminal
(2)
(2)
(
3
)
(
2
)
Ferro Operation
Locations
Petcoke Operation
Locations
(
2
)
(
2
(3)) (3)
(2)
(2)
(2)
Legend
Dry Bulk Locations
(
2
)
(
2
)
(2)
Netherlands
•
(
2
)
(4)
Liquid Locations
Transload Operations
Product Pipelines
Locations
(2)
(3
(4)
7 Louisiana
Terminals
Myrtle Grove to
Baton Rouge
(2)
(
2
)(
4
)
Kinder Morgan – Heartland
Terminal
Our proposed sulphur
terminal project provides a
viable industry solution for
handling sulphur production
in the Heartland area while
at the same time minimizing
the environmental impact to
the region
Sulphur Production - General
Context
• Heartland area’s refineries and upgraders could produce
over 4 Million tonnes of sulphur per year by 2015
• Current trend could see the proliferation of multiple
sulphur handling sites throughout the region
• Sulphur must be handled properly to minimize:
• impact on air quality
• environmental risks such as fire and dust, and
• public opposition
Kinder Morgan’s Sulphur
Experience
Kinder Morgan brings three tangible benefits to the
handling of sulphur in the Heartland region:
1. Management and operation of bulk terminal facilities
across North America is a core competency of
Kinder Morgan
2. The Heartland terminal location is ideally suited to
become a regional hub for the handling of sulphur
and other by-products
3. Our company owns Devco, a sulphur forming and
processing company with over 25 years of
experience within the sulphur industry
Location, Location, Location
KINDER MORGAN
HEARTLAND TERMINAL
ƒ
In the “Heart” of Heartland
ƒ
Surrounded by Industry
ƒ
Close proximity to sulphur
production
Heartland Sulphur Terminal
It offers an environmentally responsible solution:
1. Economies of scale gained by developing a regional
solution will be used to implement effective measures
that will minimize the environmental impacts of
sulphur production within Heartland
2. Depending on customer requirements, Kinder Morgan
can introduce the Devco forming technology that
would further reduce the environmental impact of
sulphur production
Why Process Sulphur at KMCT Heartland?
• Consolidate sulphur at one location
– Mitigate visual impact
– Enhanced environmental standards reduces risk exposure
– Avoids intrusion into suburban areas and # of similar operations
– A single site for monitoring by regulatory agencies
• Ability to incorporate full industry functional requirements
– KM project meets the functional requirements of our customers
– KM has a strong reputation for exceeding customer
expectations
• Advanced environmental management
– Scrubbing of all sulphur gases
– Water use / run-off management
– Controlled sulphur storage
• Cost effective
– Economies of scale as a result of shared facility
KMC Proposed Site
Health, Safety, & Environmental
Attributes
•
Visibility of facility reduced by maintaining existing perimeter treeline
•
Water treatment of all run-off & process water until “clean”
•
Odour controls built-in during processing
•
Upset conditions detected via process control equipment
•
Safety buffers built-in via equipment redundancy
•
Dust minimized with proper handling and storage silos
•
Fire control systems installed with auxiliary detection systems
•
Inbound sulphur supplied primarily via pipeline and outbound via rail
•
Continuous housekeeping will maintain general site health and safety
Devco Technology
Environmental Benefits
• The Devco sulphur wet-forming process
has the safest record in the industry
• Lowest sulphur-forming capital and
operating costs
• Minimizes environmental impact
• Customer requirements (technology)
Summary
• Kinder Morgan’s site is ideally situated to be the Heartland
“Industry Solution” for sulphur
• One world-class handling site will benefit Industry,
Government, Environment, and the Public
• Areas of concern addressed:
NIMBY
Fires
Traffic
Odour
Air
Best technology
Dust
Visual Impact
Cost
Water
Process Control
Scalability
• Kinder Morgan has the knowledge, experience, and the
financial capability to make it happen
Questions?