Canadian midstream oil and gas operator Keyera and CN are exploring the possibility of creating a clean energy terminal in Alberta, Canada.
The two companies signed a memorandum of understanding to evaluate the endeavor, which they maintain would create infrastructure that could aggregate conventional and clean energy from multiple sources and transport those products.
“This project capitalizes on a core CN strength: sustainably moving Canadian natural resources safely and efficiently to domestic and international markets,” said CN President and CEO Tracy Robinson in a news release. “We are pleased to be working with Keyera on this project, which will benefit Alberta and the Canadian economy.”
The facility could handle six inbound and outbound high-capacity trains daily, according to the companies, and it would be built on adjoining lands belonging to Keyera and CN. Its location is in close proximity to large industrial operations, plus there is also already infrastructure in place to support the terminal, including carbon sequestration facilities.
“The clean energy terminal will be a significant capital investment in new infrastructure in Alberta’s Industrial Heartland (AIH),” said Mark Plamondon, executive director for the Alberta Industrial Heartland Association. “The terminal will add to the competitiveness of AIH, which will underpin additional new clean energy investments that take advantage of centralized loading and cost-efficient access to global markets. This investment also illustrates that successful collaboration has been effective in helping create new economic opportunities and enhancing the already robust offerings in AIH.”
According to Alberta’s government website, production of conventional and nonconventional oil in the province has been steadily increasing over the last 10 years, with January to June 2022 oil production at 104 million cubic meters, up 2.4% from the same period in 2021. This would be equal to about 654.3 million barrels.
Natural gas production in Alberta from January to June totaled 54.3 billion cubic meters, up 6.7% from the same period in 2021. That would be equal to about 1.97 trillion cubic feet.
According to the Association of American Railroads, the Canadian freight railways moved 282,070 carloads throughout the country since the start of the year through Saturday, up 8.3% year over year.