Calgary, Weyburn 鈥� One of the key questions regarding the future of coal-fired power generation in Saskatchewan is the future for carbon capture and storage. For there to be a future, there has to be a willing buyer of the additional captured CO2, beyond what is captured at Boundary Dam Unit 3. Who would that buyer be?
On Sept. 19, Whitecap Resources Inc. president and CEO Grant Fagerheim told Pipeline News they were interested. Indeed, he had just been to Regina to talk to government ministers about that exact issue.
Whitecap is the operator of the Weyburn Unit, with 62 per cent ownership. The Weyburn Unit is currently the sole purchaser of the CO2 coming out of the Boundary Dam Unit 3 Integrated Carbon Capture and Storage Project, at the other end of a 71-kilometre pipeline. There the carbon dioxide is used for enhanced oil recovery.
Fagerheim said, 鈥淚 was just down in Regina two days ago, talking to the government about that. We want to continue to expand out the Weyburn project area, the CO2 recovery project. That means we need more CO2, not less. That means not just the Saskatchewan government, but we have to get the federal government to understand that.
鈥淲e are prepared to expand the project area, but we need a long-term security of supply. This back-and-forth between the provincial and federal governments 鈥� they can鈥檛 plan, we can鈥檛 plan. We would like to advance.
鈥淲e鈥檙e talking about an incremental $2 billion of capital to expand that,鈥� Fagerheim said. That would be Whitecap鈥檚 investment for their end, not SaskPower鈥檚.
They would need a minimum 15 years of CO2, on top of what they have in place right now. 鈥淓ither we get it from there (Estevan) or we鈥檙e looking cross border as well. We鈥檙e looking at North Dakota. We鈥檙e looking at Wyoming as well. Why wouldn鈥檛 we do what鈥檚 best for Canadians? Right here! Job creation, opportunities, CO2 sequestration, advancing the largest project in the world. That鈥檚 what I was just down there, talking to Minister Eyre and Minister Duncan about,鈥� Fagerheim said.
(Bronwyn Eyre is Minister of Energy and Resources, while Dustin Duncan is Minister of Environment and Minister Responsible for SaskPower, as well as MLA for Weyburn-Big Muddy.) 聽
鈥淲e want to continue to advance, and I think we can make some headway. The challenge they have right now, and I鈥檓 sympathetic to it, is that the federal government has said, 鈥楴o more coal, no more coal!鈥�
鈥淲ait a second. If it鈥檚 responsibly developed, and we鈥檙e using the most advanced technologies available, what do you mean, shut down coal? Why would you shut down coal, with the recovery factors we鈥檙e getting today?鈥�
He went on, 鈥淲e鈥檙e using it to demonstrate. The Chinese are coming over to see us. The Qataris. The Saudis. The Kuwaitis. They鈥檝e all be to see us here in the last six months. Yet you鈥檝e got these federal government policies, saying, 鈥楴o more coal, no more oil, no more natural gas.鈥� You can鈥檛 create energy out of Pixie Sticks.鈥�
He said major companies are looking at carbon capture opportunities, and that includes interest from at least one other company in southeast Saskatchewan. 鈥淲e鈥檙e getting inundated all the time with potential to team up with other opportunities. I don鈥檛 think funding would be a problem. We want to expand the project area.鈥�
He thinks SaskPower would want to expand, if there wasn鈥檛 this overarching concern about coal from the federal government.
鈥淲e would love to expand the footprint. For sure, we would.鈥�
He said the Saskatchewan government is being very supportive, with open communication, trying to do what鈥檚 best for the residents of Saskatchewan. Alberta Premier Jason Kenney is doing the same in Alberta, Fagerheim added. 鈥淲e think the two provinces are very welcoming.鈥�
Whitecap鈥檚 2019 production guidance is 70,000 to 72,000 barrels of oil equivalent per day, company-wide, of which 85 per cent is oil and natural gas liquids. Their September 2019 corporate presentation notes their southeast Saskatchewan assets, the Weyburn Unit (which uses CO2-enhanced oil recovery), has recovered 33 per cent of original oil in place. It has a possible recovery factor of 47 per cent. The reserve life is expected to be in excess of 40 years.
