By Daniel Punch, from www.theobserver.ca The Observer
An Alberta oil sands company is looking to manufacture equipment in Sarnia, which could mean hundreds of millions of dollars for the local economy, officials say.
Oak Point Energy is seeking the right location to build modules for its oil-recovery technology. CEO Ken James visited Sarnia Thursday to meet with city officials and local businesses to discuss logistics.
The company is building a $20 million pilot steam-assisted gravity drainage (SAGD) facility this year, with plans to build multiple $150 million facilities in the future.
Manufacturing is expensive in Alberta, and the province lacks the Ontario’s infrastructure and stable labour force, James said.
Sarnia has the skill and manufacturing facilities already in place, and its location on the St. Clair River would makes shipping modules to Alberta much easier, he said.
“There’s some tremendous opportunities in the Sarnia area,” James said.
The pilot facility will require 12 modules, 65 feet long and 14 feet wide. Each module could take up to a year to build.
If all goes well with the pilot, Oak Point Energy could require over 10 larger modules per year, said James.
“The job spin off of that alone would fill the shops in Sarnia,” James said.
Kel-Gor, Chemfab and LamSar have all been discussed as potential module fabricators. And Sarnia-Lambton has many smaller companies able to do the work, said Ray Curran of the Sarnia Construction Association.
This could be a major boost during slow times for Sarnia’s 5,000-man construction union work force, Curran said.
“Everything’s here, the shops are well set up, and they’re ready to work,” he said.
James met with mayor Mike Bradley for an hour Thursday.
The Sarnia Lambton Economic Partnership (SLEP) has been working for years to convince Alberta businesses that Sarnia can support their manufacturing needs.
The efforts have not gone unnoticed, according to James.
“Sarnia is one of those rare places in North America that’s actually industry friendly,” James said.
The biggest obstacle facing the project is transportation.
Modules can easily be shipped on water from Sarnia to Thunder Bay, but getting from Thunder Bay to Manitoba is another story.
Infrastructure in what James calls the “400 miles of mystery” can accommodate 14-foot modules, but not the larger units Oak Point Energy plans to build in the future. For manufacturing in Sarnia to work, infrastructure projects are needed between Thunder Bay and Manitoba.
SLEP sent a letter to Ontario Premier Dalton McGuinty Thursday requesting a meeting to discuss attracting investment to the province.
“It would be great to see Sarnia be the catalyst,” James said.
James plans to return to Sarnia on a regular basis, hoping to keep the wheels in motion. Repairing the broken relationship between Ontario and Alberta is an important step toward making the project work, he said.
Bradley believes the city is ready and the time is now.
“This is a now project, if its going to happen, decisions are going to be made in the coming months,” Bradley said.
Observer Article ID# 3496771
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