Economic Pathways Partnership. Ryan McFadden and Annie Korver July 21, 2017 Edmonton, Alberta
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1 Economic Pathways Partnership Ryan McFadden and Annie Korver July 21, 2017 Edmonton, Alberta
2 Trans Mountain Pipeline 60 Years of History 2
3 TRANS MOUNTAIN EXPANSION PROJECT OVERVIEW 3
4 Trans Mountain Pipeline 1,150-km pipeline between Strathcona County (near Edmonton) and Burnaby In operation since 1953, last expansion completed in 2008 Regulated by the National Energy Board (NEB) Transports refined products, heavy crude oils, synthetic crude oils, light crude oils In 2012, Kinder Morgan Canada announced it would proceed with its plan to expand the existing pipeline system 4
5 Scope of Expansion Project Announced in 2012, Facilities Application filed to NEB in December 2013 Based on 15- and 20-year commitments from shippers to use the line Projected capital cost is approximately $7.4 billion* Government of Canada granted approval for the Trans Mountain Expansion Project on November 29, 2016 *Actual Project costs may change. 5
6 Expansion Project Components Twinned pipeline system from Strathcona County to Burnaby 980 km of new 36-inch (860 km) and 42-inch (120 km) diameter pipeline mostly parallel to existing pipeline Line 1 lighter products Line 2 heavier oils Two 30-inch diameter Burnaby to Westridge Delivery lines 12 new pump stations 19 new storage tanks At existing facilities in Edmonton and Burnaby Westridge Marine Terminal New dock complex three berth faces and a utility berth 6
7 7
8 ABORIGINAL ENGAGEMENT 8
9 Aboriginal Engagement Principles Build Trust and Respect Ensure Meaningful Consultation Address Legal Requirements Provide Capacity Funding Gather Aboriginal Perspectives Assess Project Impacts Reach Impact Understandings Provide Benefits for Aboriginal Groups Maximize training and employment to Aboriginal groups Maximize procurement with Aboriginal groups 9
10 Aboriginal Engagement Aboriginal engagement to date has included more than 140 Aboriginal communities and groups More than 40,000 points of engagement with Aboriginal communities The Project will traverse Treaty 6 and Treaty 8 territories in Alberta and numerous traditional territories in British Columbia Over communities have participated in TLRU studies, TMRU studies and TEK studies Some 70 groups have participated as Intervenors or Commenters in the NEB process The Project has received close to 40 letters of support from Aboriginal groups 10
11 ECONOMIC OPPORTUNITIES 11
12 Canadian Chamber Report 12
13 Economic Benefits 13
14 Benefits to Governments 14
15 CONSTRUCTION PROCESS 15
16 Rural Construction Spread Part 1 16
17 Rural Construction Spread Part 2 17
18 Urban Construction Spread Part 1 18
19 Urban Construction Spread Part 2 19
20 CONSTRUCTION PROCUREMENT 20
21 Procurement Opportunities The Project is anticipated to require approximately $4.5 billion in goods and services Trans Mountain is committed to pursuing Projectrelated employment and business opportunities for Aboriginal, local and regional groups along the pipeline corridor Over the past few years, Trans Mountain has been meeting with Aboriginal, regional and local entities across AB and BC to identify capacity and capability to formulate a procurement execution strategy 21
22 Procurement Objectives Goods and services will be acquired through a combination of procurement strategies: Directly with Trans Mountain; or Directly with a General Construction Contractors (GCCs) engaged by Trans Mountain to construct the pipeline and facilities In addition to the procurement of construction-related services, Trans Mountain requires a substantial amount of goods and materials to construct the pipeline and related facilities At the appropriate time and where feasible, Trans Mountain will support small local businesses and Aboriginal businesses through the evaluation process to meet Project requirements for safety, cost and quality 22
23 Procurement Registry 23
24 CONTRACTOR RESPONSIBILITIES 24
25 Contractor Responsibilities Contractors are responsible for adhering to: Trans Mountain Aboriginal, Local and Regional Inclusion Plan; and National Energy Board and BC Environmental Assessment Office Project Conditions Contractors will produce a Procurement Plan for approval by Trans Mountain The Procurement Plan will outline specific sub-contracts that are required for each spread TEMP s Aboriginal Supply Chain Team will work with each GCC to identify opportunities for qualified Aboriginal, local & regional businesses located along the Socio-Economic RSA Together, TEMP and GCCs will agree on how Goods & Services will be evaluated and procured. All potential opportunities will be evaluated in the same manner taking Safety, Cost, Technical Capacity, Quality & Timing into consideration.
26 PIPELINE CONSTRUCTION EMPLOYMENT 26
27 Typical Pipeline Spread 5 Management 40 Welder 6 Professional Staff 40 Welder s Helper 6 Inspector 1-2 Bucker 18 Accounting/Admin 5 Carpenter 5 Sandblaster 105 Equipment Operator 40 Foreman 130 Labourer 2 Security 28 Driver 27
28 Typical Pump Station Crew 2 Management 6 Carpenter 4 Inspector 1 Crane Operator 4 Foreman 2 Painter/Coater 2 3 Millwright Welder 4 Building Erector 3 Pipefitter 6 Site Prep Earthwork 6 Electrician 6 Labourer 28
29 Edmonton Terminal Expansion 9 Management 12 Pipefitter 12 Inspection 18 Electrician 23 Mgt. & Field Support 30 Equipment Operator 12 Safety & Security 8 Surveyor 18 Foreman (all trades) 32 Hydro Vac (at peak) 5-10 Carpenter 30 Coating Contractor 61 Boilermakers/Welders 12 Labourer 29
30 Employment Registry 30
31 Training Program for Aboriginal Peoples Objective: To maximize the economic and employment opportunities of Aboriginal People and wherever possible, Trans Mountain aims to leverage its budget for the training program through government funding programs. Guidelines: The Program is guided by: Trans Mountain Expansion Project Employment Policy Trans Mountain Expansion Project Training Policy for Aboriginal Peoples Trans Mountain Expansion Project Employment and Training Execution Plan The Program supports: Aboriginal Engagement Program NEB Condition compliance Condition 11, 12, 58 and 107 NEB Commitment compliance Mutual Benefit Agreement compliance Participants who complete training are referred to contractors through a direct name referral for consideration with employment opportunities
32 CONTRACTOR RESPONSIBILITIES 32
33 Contractor Responsibilities Contractors are responsible to: Adhere to the Trans Mountain Aboriginal, Local and Regional Inclusion Plan Adhere to the National Energy Board and BC Environmental Assessment Office Project Conditions and Commitments Contractors will produce an Aboriginal, Local and Regional Employment and Training Inclusion Plan The Plan must meet Trans Mountain s objective to maximize opportunities Plans will be reviewed, audited and then approved by Trans Mountain Contractors will report monthly using indicators and Trans Mountain will support contractors throughout construction with their success in meeting the objective.
34 CURRENT STATUS AND NEXT STEPS 34
35 Current Status and Next Steps Ongoing discussions and engagement with landowners, Aboriginal groups, communities and stakeholders June Trans Mountain announced Kiewit-Ledcor as Lower Mainland Contractor which includes the last 35 kilometers of the pipeline from Langley to Burnaby, the Burnaby Mountain tunnel, Westridge Marine Terminal, Burnaby Terminal and Sumas Terminal. Final stages of negotiations to secure General Construction Contractors for each Project spread by Q Facilities and Pump Station contract on track for completion by Q Planning to commence early works construction by September/October
36 We Want To Hear From You 36
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