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Alberta

EAST TANK FARM EQUITY ARRANGEMENT

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EAST TANK FARM EQUITY ARRANGEMENT

In the fall of 2017 Suncor, Fort McKay First Nation (FMFN) and Mikisew Cree First Nation (MCFN) announced the completion of the acquisition by FMFN and MCFN of a 49 per cent interest in the East Tank Farm Development (ETFD) valued at approximately $500 million. The two First Nations independently financed the acquisition, with the offering structured and marketed by RBC Capital Markets.

The agreement is unprecedented in size and scale for the First Nations and Suncor and is part of a growing trend of Indigenous communities as equity owners. The investment will provide a steady stream of revenue to both FMFN and MCFN for a minimum period of 25 years. Located 35 kilometres north of Fort McMurray, the ETFD provides storage, cooling and blending services for bitumen received from Fort Hills.

At a signing ceremony on Nov. 22, 2017, Suncor, Fort McKay First Nation (FMFN) and Mikisew Cree First Nation (MCFN) announced the completion of the acquisition by FMFN and MCFN of a 49 per cent interest in Suncor’s East Tank Farm Development (ETFD).

The two First Nations independently financed the acquisition, with the offering structured and marketed by RBC Capital Markets. The agreement is unprecedented in size and scale for the First Nations and Suncor and is part of a growing trend of Indigenous communities as equity owners.

“We’ve completed a historic deal for energy development in Canada. This unique partnership has been part of a journey that demonstrates how innovative thinking and collaborative spirit can result in a mutually- beneficial opportunity and it has changed the way Suncor thinks about how our Aboriginal neighbours may participate in energy development,” said Mark Little, president, Upstream, at the time of the signing and now Suncor’s president and CEO. “Through this partnership we’ve learned a lot about working together to create something significant, and I look forward to continuing to work together on this joint investment with Fort McKay First Nation and Mikisew Cree First Nation for many years to come.”

The agreement is held in a limited partnership with Suncor called Thebacha, the Dene word for “river.” The investment will provide a steady stream of revenue to both FMFN and MCFN for a minimum period of 25 years.

“The economic benefits generated from this deal will help our Nation to build capacity within our businesses, develop infrastructure in our community, fund social economic programs, and provide us with the means to help pay for education and training for our youth, and will be felt in our community for generations to come,” says MCFN Chief Archie Waquan.

Located 35 kilometres north of Fort McMurray, the ETFD is part of the existing East Tank Farm and adjoins the Hot Bitumen Terminal (HBT) and its associated tanks. Once Fort Hills begins to produce bitumen, the ETFD will receive the Fort Hills hot bitumen via the Northern Courier Pipeline.

“The deal represents one of the largest business investment to date by First Nation entities in Canada, and not only demonstrates the great potential for partnerships between First Nations and industry but serves as a model for how First Nations can achieve greater self-determination through financial independence,” said, FMFN Chief Jim Boucher, Chief at the time of the signing. “It is an example of how First Nations and natural resource development companies can find ways to support each other for the mutual long-term benefits.”

Thanks to Todayville for helping us bring our members’ stories of collaboration and innovation to the public.

Click to read a foreward from JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President and CEO, Canadian Council for Aboriginal Business.

JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President & CEO, Canadian Council for Aboriginal Business

Click to read comments about this series from Jacob Irving, President of the Energy Council of Canada.

Jacob Irving, President of Energy Council of Canada

The Canadian Energy Compendium is an annual initiative by the Energy Council of Canada to provide an opportunity for cross-sectoral collaboration and discussion on current topics in Canada’s energy sector.  The 2020 Canadian Energy Compendium: Innovations in Energy Efficiency is due to be released November 2020.

Read more on Todayville.

 

Hydro-Québec takes partnerships, environmental measures and sharing of wealth to new levels

 

 

 

The Energy Council of Canada brings together a diverse body of members, including voices from all energy industries, associations, and levels of government within Canada. We foster dialogue, strategic thinking, collaboration, and action by bringing together senior energy executives from all industries in the public and private sectors to address national, continental, and international energy issues.

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Alberta

Hockey Canada suspends world junior selection camp after positive COVID-19 tests

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RED DEER, Alta. — Hockey Canada has temporarily shutdown national junior team selection camp following the confirmation of two positive COVID-19 tests among players.

Hockey Canada announced on Wednesday that players, coaches and staff at the camp have entered a 14-day quarantine retroactive to Monday. All camp activities will be paused until Dec. 6. 

The original announcement of the positive player tests came on Tuesday — three days after Hockey Canada said a “non-core member” of the team’s staff also tested positive. Hockey Canada said it was suspending all camp activities for the day, including a scheduled intrasquad game, at the time.

Both players and the staff have been in quarantine at the team’s hotel in Red Deer, Alta. 

Players, coaches and staff all took mandatory COVID-19 tests upon arrival at the camp and have been tested regularly while there.

Hockey Canada is in the midst of their selection camp ahead of the 2021 IIHF World Junior Hockey Championships in Edmonton that opens on Christmas Day. 

“Hockey Canada has confirmed that all players, coaches and staff are considered close contacts and are therefore subject to the mandatory 14-day quarantine period under Alberta Health Services,” said senior vice-president of national teams, Scott Salmond.

“Upon learning of the positive tests on Monday, the decision was made to suspend all camp activities and quarantine players and staff immediately. As per Hockey Canada’s safety protocols, all players, coaches and staff members will go through additional testing before resuming any camp activities.”

Canada seeks its second consecutive gold medal at the tournament, which would be its 19th title all-time. 

This report by The Canadian Press was first published November 25, 2020.

The Canadian Press

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Alberta

Crude-by-rail shipments bounce back from summer lows in September, says CER

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CALGARY — Canadian exports of crude oil by rail are bouncing back after falling to an eight-year low in July.

The Canada Energy Regulator says rail shipments of oil in September amounted to 94,440 barrels per day, nearly double the 51,000 bpd shipped in August.

Only 39,000 bpd was shipped in July. That’s less than a tenth of the record 412,000 bpd moved by rail in February.

Rail transportation of crude oil is considered to be more expensive than shipping by pipeline so shippers tend to use it only when pipelines are full or if the destination market offers much higher prices than can be achieved in Canada.

The CER says the lower use of rail compared with February results from lower crude oil production in Western Canada as global oil demand slumps due to the COVID-19 pandemic.

The reduced production levels have freed up more space on export pipelines.

This report by The Canadian Press was first published Nov. 25, 2020.

The Canadian Press

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november, 2020

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