New industrial park to get LNG plant

1,000-acre Sturgeon County site will also attract related businesses

The Edmonton Economic Development Corporation has announced plans for a 1,000-acre Sturgeon County industrial park that would include a facility to make liquefied natural gas for export to China.

EEDC said Monday it has signed a memorandum of understanding with Gascana AB Energy Ltd. and Gascana-Sino Industrial Park Administrative Committee Inc. on a project called the Sino Canada Natural Gas Development Initiative.

“But until there are shovels in the ground ... any deal ... can fall off track.” BRAD FERGUSON

It would focus on natural-gas related industries including refining, upgrading, technology research and manufacturing, the partners said.

The Sturgeon County site would include LNG production, up to five facilities to extract chemicals from natural gas, equipment manufacturing and professional services. A related business incubator, backed by a $30-million equity fund, would open in Edmonton.

Brad Ferguson, EEDC’s president and CEO, said the project has come together over the past 10 months. More work lies ahead in terms of market assessment and regulatory approvals, he said.

“That’s why I guess I’m not clicking my heels too much today,” Ferguson said. “Over the next year it all starts to come together in terms of the viability.

“These folks are very committed, that’s all I can tell you. But until there are shovels in the ground and there’s things flowing, then any deal ... can fall off track.”

Preliminary details of the LNG plant were made public last week in a news release from Calgary junior oil and gas firm Petrox Resources Corp.

The release described Gascana as a new joint venture between Petrox, Qingdao Sinoenergy Corp. of China and Asiafic Clean Energy Ltd., a Hong Kong subsidiary of Qingdao Sinoenergy.

Petrox said Gascana plans to build an LNG plant in Alberta with daily production capacity of 2,950 tonnes. The release didn’t specify a location but Ferguson confirmed it’s the same plant being discussed for Sturgeon County.

Gascana hasn’t said how it would export its products but Ferguson said the LNG could be moved to the West Coast by rail, pipeline or truck.

The industrial park would be built in three phases over five years on land near Highway 825 and Range Road 222 in the Industrial Heartland.

Total investment would be $4 billion, EEDC said. When complete, it would achieve $5 billion in annual production and provide more than 2,000 permanent jobs, EEDC said.

EEDC will continue to work with the project as it moves forward, Ferguson said.

The Sino Edmonton incubator will provide help to local businesses that are designed from “Day 1” to export goods to China, he said.

Jordan Rumohr, manager of economic development for Sturgeon County, said county officials are aware of the industrial park proposal and the work EEDC has done.

“We’re kind of light on details, on specifics,” Rumohr said. “We’ve been aware of them for a little while now but we’re excited about the opportunity to work with them.”

In its June 19 release, Petrox said it would have a 10-per-cent equity interest in the LNG plant. It would implement the project and obtain regulatory approvals.

Asiafic would hold the remaining 90-per-cent interest. It would secure the upstream natural gas supply and purchase the land. Gascana would be responsible for engineering and construction.

On April 1, the National Energy Board authorized Gascana Inc. to export liquefied natural gas for a period of two years beginning April 2.

The Alberta Energy Regulator has not received any applications related to the project, spokesman Darin Barter said.