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County raises red flag over LNG plant

County council was alarmed this week about plans to build a $50-million liquefied natural gas plant just south of Villeneuve instead of in the Industrial Heartland.

County council was alarmed this week about plans to build a $50-million liquefied natural gas plant just south of Villeneuve instead of in the Industrial Heartland.

Council voted 6-1 Tuesday to file a statement of concern with the Alberta Energy Regulator about plans from Ferus Natural Gas Fuels Inc. to build a $50-million liquefied natural gas plant about 2.5 kilometres southeast of Villeneuve. Coun. Susan Evans was opposed.

The statement, which could prompt the regulator to call a public hearing, objects to the development on the basis that it should go into the Industrial Heartland region instead.

Ferus is a North American company that produces liquid nitrogen, liquid carbon dioxide and liquefied natural gas (LNG). Last October, it opened Canada's first merchant LNG plant in Elmworth, Alta., near Grande Prairie.

LNG is natural gas that's been chilled to about -160 C to condense it into a clear, colourless, odourless, non-corrosive, non-toxic liquid, reports Natural Resources Canada.

LNG freezes whatever it touches, but is not explosive or flammable as a liquid. If allowed to vaporize (which it does readily at room temperature) and mix with air, it can ignite if set off.

The proposed location of the Ferus plant is a 20-acre site along R.R. 264, county development officer Colin Krywiak said in an interview. The plant itself would take up about 3.5 acres and would be next to a pre-existing Atco natural gas plant. The area is zoned agricultural, and allows for gas processing plants as a discretionary use. The nearest home is about 500 metres away.

Ferus initially applied to build this $50-million plant in the Industrial Heartland region but found it wasn't economical to pipe natural gas there, Krywiak explained. They switched to the Villeneuve site, and held an open house on the project last December.

Ferus has filed for a licence to build the plant from the Alberta Energy Regulator, triggering a call for statements of concern from affected residents.

The project

The plant, once built, is meant to produce about 757,000 litres (about 4,762 barrels) of LNG per day, Krywiak said.

The plant would have a flare stack, but would only flare on rare occasions and with 24 hours notice.

While residents were also concerned about noise and light from the plant, Krywiak said the noise would be “quite minimal” for this type of facility, and that all lights would be aimed inward at the plant.

“The main concern I've heard from residents in the area is the traffic,” Krywiak said.

The gas would be transported off-site in large trucks, which Ferus plans to send through the traffic circle next to Villeneuve. Up to 20 trucks per day would shuttle to and from the plant.

County officials have yet to determine the economic impact of the plant, Krywiak said. While $50 million is a big investment, the plant itself isn't expected to create many jobs.

Wrong place for it: council

Coun. Karen Shaw strongly opposed allowing this project to be built near Villeneuve, noting that the council had created the Industrial Heartland region precisely for such developments.

Council was already grappling with residents in the heartland upset with industrialization, and allowing this development would just create more upset residents.

“It's not consistent with our plans,” she said.

“If we allow (this exception) for them, why not for anyone else down the road?”

Councillors Ferd Caron and Jerry Kaup also voiced great concern over the plant's proposed location.

“We gotta make sure they go to the heartland,” Kaup said.

County planning and development manager Clayton Kittliz noted that while the heartland was “absolutely” more suited for this project than Villeneuve, the county's land use laws allowed these plants to set up pretty much anywhere.

Mayor Tom Flynn emphasized that the county was not opposed to this sort of development.

“We do want to see this kind of growth in Sturgeon County. We just want to see it in the right place.”

Concerned residents have until July 10 to submit a statement of concern to the Alberta Energy Regulator on the Ferus project. Those statements may prompt the regulator to call a hearing on it.

Jason Beck, spokesman for Ferus, did not respond to a request for interview by press deadline.

Questions should go to Krywiak at 780-939-8376.


Kevin Ma

About the Author: Kevin Ma

Kevin Ma joined the St. Albert Gazette in 2006. He writes about Sturgeon County, education, the environment, agriculture, science and aboriginal affairs. He also contributes features, photographs and video.
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