Transport energy infrastructure requirements in Canada

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BAHRAIN POLYTECHNIC

Canada’s Transport & Energy

Report

Done by: Mariam AlQassimi, Mariam Aljaber, Hawra Adam

11/20/2014

Case study report about Canada’s transport system and the required transport energy supply within the country, taking into account the technical, socio-political and security challenges presented by each energy supply.

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Assessment Cover Sheet

Complete and attach this cover sheet to your assessment before submitting

Assessment Title

Group Assignment - Canada

Programme Title:

Bachelor International Logistics Management

Course No.:

TLB7002

Course Title:

Student Name:

Student ID:

Tutor:

Due Date:

20 th November 2014

Transport & Energy

Mariam AlQassimi, Mariam Aljaber, Hawra Adam

201000781, 201000125, 20900495

Efce Van Heerdan

Date submitted:

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 This assignment is my own work

 Any information used has been properly referenced.

 I understand that a copy of my work may be used for moderation.

I have kept a copy of this assignment

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Contents

Executive Summary .............................................................................................................................. 5

Introduction ......................................................................................................................................... 6

Overview about Canada ....................................................................................................................... 7

Location ............................................................................................................................................ 7

Area and Population ........................................................................................................................ 7

Geography and Resources ............................................................................................................... 7

Economy ........................................................................................................................................... 8

Transport Networks ......................................................................................................................... 8

The Changing Nature of Maritime, Road, Rail and Pipeline as a Means of Transporting Transport

Energy .................................................................................................................................................. 9

The changing nature of maritime .................................................................................................... 9

General introduction regarding the maritime industry in Canada .............................................. 9

The purpose of the ports and the future changes ..................................................................... 10

Enhancing marine safety ............................................................................................................ 13

The Changing Nature of Road ........................................................................................................ 14

The Usage of Road Trucks .......................................................................................................... 14

Damages and Safety ................................................................................................................... 15

The Changing Nature of Rail .......................................................................................................... 16

The beginning of Canada’s Rails ................................................................................................ 16

Load capacity of the freight of different energy sources .......................................................... 18

Safety Concerns ......................................................................................................................... 19

The Changing Nature of Pipelines .................................................................................................. 20

Canada’s Transmission Networks .............................................................................................. 20

Maps of the pipelines Networks in Canada ............................................................................... 21

The changing nature of pipelines .............................................................................................. 22

Future of Aviation Fuel and Its Supply Globally ................................................................................. 23

Distribution of aviation fuel and Refueling ................................................................................ 23

Main Aviation fuel suppliers ...................................................................................................... 24

Aviation fuel supply globally ...................................................................................................... 25

Future of aviation fuel ............................................................................................................... 26

Aviation fuel supply in Canada................................................................................................... 27

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Aviation fuel future in Canada ................................................................................................... 29

The Outlook for electrical network distribution systems in Canada ................................................. 30

Overview of Canada’s electricity generation ................................................................................. 30

Electricity generation ..................................................................................................................... 30

Industry structure ...................................................................................................................... 31

Ownership of Canada’s electricity network ................................................................................... 31

Electricity trade .............................................................................................................................. 32

Electricity supply ............................................................................................................................ 32

Electricity demand ......................................................................................................................... 33

Electricity consumption ................................................................................................................. 33

The Canadian Electricity Association (CEA) ................................................................................... 34

The strategic goals of CEA are: .................................................................................................. 34

Transport energy infrastructure requirements in Canada ................................................................ 35

Transport Energy Infrastructure Requirements: ....................................................................... 35

The Roads Infrastructure Requirements: .................................................................................. 35

Conclusion .......................................................................................................................................... 41

Bibliography ....................................................................................................................................... 42

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Executive Summary

This report was commissioned to examine and evaluate the technical, socio-political and security challenges that need to be considered in the process of making energy available from variety of sources for transport purposes in Canada.

The methods of research that were conducted in this report is by records and annual reports of

Canada’s transport systems, official websites, books, and news articles. The research is focusing on Canada’s energy transport systems and the challenges presented by each energy supply within the country, which are presented in three main sections:

These sections include the changing nature of all the means of transport in the country and how they will be handled and developed in the future. The report also covered the future of aviation industry in Canada and the global supply of the fuel in the aviation sector including the environmental issues faced in the industry. Moreover, it covered the outlook of the electrical network distributions system and all the analysis related to this sector. The third section of the report focused on the energy infrastructure and the requirements of it to further develop and help to boost the country’s energy transportation.

The report finds some errors that need to be maintained in the transport sector in order to further develop and have an efficient energy supply within the country. General recommendations about

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Introduction

This report is going to elucidate the changing nature of exporting and importing energy resources within Canada; as it will also provide some key points regarding the future of aviation fuel and how it is going to be distributed on the global countries. Moreover, it will also provide the electrical distribution in the foreseeable future, along with infrastructure requirements for transporting divergent energy sources. This report is also going to include the Socio-political issues; which is something that has a combination of social and political factors, for example, the issue of protecting the environment as a social factor and the political factors that effect this issue

(sociopolitical, 2014). The paper is also going to include the technical challenges which are basically a result of increasing the energy demand in the world at a time when most resources are declining and maturing. Therefore, technology plays an important role in order to discover and access to energy resources (Technical challenges , 2014). Furthermore, this paper is going to include some of the security challenges that could be faced because of the changing environment of the geopolitical stability.

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Overview about Canada

Location

Canada is located in the Northern part of the North American continent. It is bordered with the United States from the south.

It broadens three oceans Atlantic from the east, Pacific from the west and the Arctic northward.

Figure 1 Canada's Flag

Area and Population

With an estimated land mass of 9,970,610 square kilometers, Canada is considered as the second largest country in the world. The biggest city in

Canada is Toronto city, and the capital city is

Ottawa. Canada has 10 provinces and 3 territories;

Figure 2 Canada's location in world map each has its own responsibilities for social programs such as health care, education and welfare.

Despite all this area Canada has a very small population, which lately was estimated by 35,540,400

(statcan.gc.ca, 2014) the country has a population of multicultural nations and diverse backgrounds due to high immigration rates,13% of the Canadian population is over 65 of age, and

19% is under the age of 15(nationsencyclopedia, 2014)

Geography and Resources

The country has very rich geographical features such as, lakes, rivers, valleys, mountains, forests & plains. It also has the largest coastline in the world.(Limited, 2014).The climate in Canada changes from one geographical location to another; however, in the inhabited areas where people are mostly located, which is in the southern part of the country, there are all four seasons.

(Newcomerscanada, 2014)

Due to the wide verity of energy resources in Canada it such as Fossil fuels, coal, petroleum, natural gas. Moreover, it has vast reserves of minerals such as gold, zinc, iron, In addition to other natural resources. (indexmundi, 2014)

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Economy

Canada’s monetary unit is the Canadian dollar (Can$).it was estimated by 2013 that Canada is currently ranked as the 6 th freest economy in the world. It has a very stable and attractive investment destination (Foundation T. H., 2014).The gross domestic product in Canada is considered very high as it was estimated in 2013 by US$ 1825.10 Billion(tradingeconomics,

2014).The biggest business partner to Canada is the United States, its main exports are: crude oil, natural gas, machinery, electricity, aluminum etc. on the other hand, its imports consists of chemicals, equipments, motor vehicles.(nationsencyclopedia, 2014)

Transport Networks

There are five main transport networks in Canada which are as follow, Air transport, Road transport, Railways, Water transport and Pipelines.

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The Changing Nature of Maritime, Road, Rail and Pipeline as a Means of

Transporting Transport Energy

It is important to have an efficient, effective and reliable transport system in order to ensure the movement of passengers and cargo as well as to improve the economy. This part is focusing on the current modes of transport in term of transporting energy and the new changes taking into account the technical, socio-political and security challenges presented by each energy supply, those modes are: Maritime, Road, Rail and Pipeline.

The changing nature of maritime

General introduction regarding the maritime industry in Canada

The maritime industry in Canada is considered as a vital element in the economic growth. It is important within the following fields (canadian port industry ):

Canadian marine industry carries 90% of all trades.

The emission caused by ships per mile is less than other transportation modes , Also it is continuing to improve.

Maritime facilities are following the rules and regulations that were set by the

International Maritime Organization (IMO).

 The Canadian major ports are considered as economic engine and gateway to trade.

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The purpose of the ports and the future changes

There are several ports in Canada; however the ones that are involved in transporting energy resources are, (Bonney, 2013):

Metro Vancouver port: Metro Vancouver is the largest port in Canada and the fourth largest port in North America that handles more than 50% of all container cargos as it is Canada’s busiest container port. It is located in the southwest coast of British Columbia and it covers 600

Kilometers from Roberts point at Canada and USA border to the access of Burrard to Moody port and from the Fraser Valley to Pitt Lake. Moreover, Vancouver Port is offers a 28 major marine cargo terminal and full facilities and services according to international standards. Also, it has a deep sea terminal that has the capacity to handle a super Panamax ship and on dock rail facilities with no draft restrictions. Furthermore, Vancouver Port is considered as the most diverse port in

North America that operates five business sectors which are: bulk, bulk break, containers, automobiles and cruise. This makes it easier to trade with more than 160 world economies and in

2013 the port handled 135 million tons of cargo which is estimated to be around 95% of the port total services in term of exporting and importing services (Canada's largest and busiest port ,

2014).

Figure 3 Metro Vancouver port

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As climate change is a global issue in the world, weather conditions have an effect on Vancouver

Port so the Canadian port authorities are trying to avoid any delays in handling cargo because it will affect the port reputation and as a result it will be a financial cost (weather and tide , 2014).

Metro Vancouver port has a vision in 2050 that focuses on providing better services without affecting the environment by having electric vessels that do not causing any emissions, providing environmentally friendly equipment that helps in the port operations and to ensure the safe movement of containers with environmental concerns, focusing on energy transmission and moving people and fright without using oil. Also, new energy resources will be used especially in transporting energy resources (energy fouurm - port 2050, 2014), designing an “energy trilemma” to achieve energy security for economic growth and energy equity for environmental sustainability and social stability, reduce 50% of global emission by 2050, adopt a technology innovation and finally improving port policy and regulation and increase the share of intermittent renewable (Winkler, 2014).

Montreal port: the port of Montreal is covers 24KM of Montreal city and 4KM in contra core and it is considered as a strategic hub for Canada’s economy and the most unique port in the world for its strategic location. Moreover, it handles a large amount of containers and liquid bulk such as oil as well as dry bulk such as coal and salt. Also, large portion of Canada’s global trade transit through the port of Montreal. Furthermore, maritime shipping is known to be as an environmentally friendly and economical mode of transport among all of transportation methods. In addition to that, the port of Montreal is an important link in the chain of global maritime trade as it receives cargos from all cotenant therefore the port of Montreal is a diverse international harbor. The railway network in the port is an important facility that helps in improving the flow movement of cargo (port of Montreal , 2014).

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Prince Rupert port: it is located on the north coast of British Columbia and it has an efficient rail and road system that connects the west of Canada to the east. This port is an ice free harbor that is covered by the outer islands. Moreover, it has the ability to handle 250,000 tons of cargo and it is developing every year to take advantage of trade with China. Also, it has a strategic location as it is the closest North American port to Asia that handle coal, grain and chemicals (CPA facts , 2014).

St. Lawrence Seaway system in Great lakes plays an important role in marine transportation beside the Canadian ports. The seaway was opened in 1959 and it is controlled by Canada and

United States governments. Moreover, it has 15 locks that allow ships to travel between the great lakes to the port of Montreal. This seaway handles 50 million tons of coal, grain and steel but it is closed during winter season because of the weather condition (Marine and ports ,

2014).

The following map shows the locations of all the ports in Canada, which also shows that the ports are located at the southern parts of the country, this is because the weather in the southern sea parts of Canada is not as cold as the northern parts which helps in maritime activities.

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Enhancing marine safety

Canada’s government is committed in creating a world class marine tanker that has a safety system to enhance safety shipping on east and west coast. Moreover, the current safety system for tankers is good nowadays and it serves very well in recent years but Canada is expected to increase energy exports in the future; hence they want to improve the current system in order to fulfill the future needs effectively.

In order to protect the Canadians safety and environment, Canada’s government established a plan; the goal of this plan is to develop the department that is responsible of safety. This plan consists of preventing accidents to happen and to take actions to the polluter in case of spills in order to ensure the safety of marine tankers. Also, the government of Canada is establishing a world class system to transport oil and gas safely through Canada’s waterways.

In addition, Canada’s government established a board by experts. This board contains the preparations in case of oil spills and response regime plus a further measure to overcome this problem (enhancing marine safety , 2014). In addition, since 1012 the Canadian government has provided funding to support the safety tanker inspections and stronger oversight requirements for preventing pollution that caused by oil spills (highlights , 2014).

Figure 4 Port State Control (PSC) in Canada's Ports

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The Changing Nature of Road

Roads were first built in Canada since the 18 century to enhance and ease the movement of people from one place to another especially in the north state of Canada; as the travel and the movements of goods was very difficult and toke a lot of time and effort due to the increase numbers of lacks and rivers, and the wide rugged green spaces and lands in the north. Over the time and since the 19 century, the country has improved the road and the transport infrastructure dramatically and continuously to keep pace with the requirements and the use of different types of transport means; from horses and animals carriage transportation to the new modern vehicles and cars that are used today. The objectives of land and road transportation is also change over the time as moving people from a place to another and moving variety of goods and bulk as well as energy resources; in the past the goods were mostly transported in small quantities and sizes and delivered to a limited routes and destinations. Nowadays, the roads of the country can handle to transport very dangerous goods and enormous quantity of different bulks around the country, and across the continent. (Gilchrist, 2014)

The Usage of Road Trucks

In 2013, the Canadian private and public companies are agreed on the usage of trucks and road tankers to transport and move crude oil and natural gas along with the rail system and pipelines.

Although the pipelines systems hold the biggest share of moving and transfer oil and gas across

Canada and to the United states. Canada Transport Association used in the recent years oil trailer/ road tanker trucks to move crude oil along the country. (Lisa Ricciotti)

Portiek Ventures Company provide its services where the pipelines systems are not been served in these area; the company transport about 25,000 barrels of crude oil per a month by their road tanker oil from the well oil sites in Rimbey city, Drayton Valley and Rocky Mountain House and deliver it to the manufacturing and oil refineries. (Lisa Ricciotti).

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Other public companies such as Gibson Energy Inc. can transport about 250.000 oil barrels in a month as well as propane gas, natural liquid gas and butane gas by road tankers trucks around

Canada and export to the United State. The energy sources are then transported to the storage hubs of the company and the pipelines receiving stations, then to be distributed to many others consumer in the markets in the country and the US. (Gilchrist, 2014).

The roads vehicles also used to transport nuclear and radio actives

Damages and Safety

Although transport natural resources energy via roads and trucks became very popular and well controlled in the country, the safe and security elements are still considered limited; as the truck road transport has more risk of oil petroleum and natural gas spill and leak comparing with

. pipelines transport. On the other hand, the road transportation is considered to be more risky and dangerous on the workers than the pipelines transport. (Kenneth P. Green , 2013)

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The Changing Nature of Rail

The beginning of Canada’s Rails

In 1836, Canada established the first steam powered railway system line in the country; this is the age of the rail ways system in Canada. The rail ways system has caused a major boom and growth in the country’s economy and the social development as moving variety types of products as well as passengers transportation became a lot easier and more time efficiency; because rail system allows to moves a big amount of bulks in a short period of time. (Lois Kernaghan , 2013).

Since the early years the steam powered railways was mainly used to move and transport goods and heavy bulks especially coal; as the second rail system in Canada Albion Mines Railway was build near the coal mine to carry the coal bulks to the markets. In the upcoming years, the railways was built to carry and transfer different types of bulks and products such as coal, petroleum coke, crude oil, uranium ore, natural gas, grain and many other different types of ore as well as used to move people across the nation. Since the country manage a wide range of land space, the rail transportation systems seemed to create an ideal fast and reliable mode of transport for both human and the goods movements. (Lois Kernaghan , 2013)

Nowadays, the rail ways provide options to move crude oil and the other energy resources to every state in Canada as well as the US markets; as pipelines are limited in its capacity and are not access to every land space. (CanadaNational , 2014)

The official railway system, the Canadian National Railway Company can access more than 75 percent of the Canadian lands and markets as well as the American ones, (Canadian National

Railway Company , 2014) it is also control and operate between 32,000 Km to 50,000 km of track rail system network routes in both countries Canada and the US. The route connect many ports located the three coast of the north America (west coast, east coast and south coast); this achievement is a result of the free trade agreement between the two countries. (Canadian

National Railway Company, 2014).

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The

Figure 5 Canada and U.s railway network map shows the Canadian National Railway Company networks in Canada and the US. (Canadian National

Railway Company, 2014).

The Canadian pacific freight rail system is the second major rail company with over 15,000 miles of rail networks in the country that are operate in both Canada and the United states of America. (

Canadian Pacific, 2014).

Figure 6 Canada's railways system

This map shows the Canadian Pacific Rail system Routes networks. (Canadian Pacific , 2014).

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Load capacity of the freight of different energy sources

Coal: About 45 million tons of coal are transported and carried by the Canadian National Train

System every year from mines to the markets in the country. (Canadian National Railway

Company, 2014).

Oil: oil, crude oil and petroleum products that are transported by rail had reached over 16,000 carloads and more than 1200,000 million tones. (Canada Association of Petroleum Producers,

2014).

(Canada Association of Petroleum Producers, 2014).

Wind power: wind energy power has been transported to destination since 2005 by the Canadian

Pacific railways. The rail system has transported more than 3500 carloads of turbines, hubs, nacelles, blades and tower sections. The Canadian pacific airways transport wind energy equipments by 70 tons and 85ft flat train cars. (Canadian Pacific , 2014).

Nuclear power: Canada is one of the biggest country producer and consumer of nuclear power in the world with 19 power reactors in service by major safety records and standers of transporting and managing the radioactive waste and the nuclear power. (Canadian Nuclear Association , 2013)

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Nuclear materials is transported in Canada mainly via train and road vehicles (Alberta

Government , 2012) that are stored in especial maintained containers with extreme packaging methods to increase the safety during transportation. (Canadian Nuclear Association). This image shows container truck of radioactive material. (OPG , 2010).

Safety Concerns

On October 2014, a train belonged to the Canadian National Railways Company was crashed and destroyed in central Saskatchewan City which caused a spill of petroleum and other chemical products that was carried by the train. The spill caused fire and explosion at the accidents location; which destroyed the train cars terminal loads. (David George Cosh , 2014).

This recent train derailments accident is one of many other derailments in Canada. In the recent years the derailments accident has increased a lot, many of these train and rail systems that are involved in the incidents carried oil, petroleum and many other dangerous flammable bulks which increase the risk of potential fire and explosions and the death rate among the workers.

In 2013, The Transportation Safety Board of Canada was concerned about the increased accidents of the trains system; since they discovered more than 100 unreported derailments accidents in

Canada which bring the question of how safe is the Canadian rail system for the public and the natural resources transported? (Dave Seglins, 2014).

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The Changing Nature of Pipelines

Using pipelines as means of transport is an economical, safe and reliable way of transporting significant amount of liquids such as oil and natural gas. For that reason, most of Canada’s crude oil supplies are transmitted through pipelines. Yet, natural gas is only transmitted by pipelines.

Canada’s pipelines systems existed since the 1950s, when there was massive exploration of oil and gas resources in western Canada. The pipelines in Canada are enough to circle earth 17 times, and they exist in two territories & eight provinces. (Foundation P. C.)

Moreover, pipelines transmission works as a vital link between Canada & USA. By using this link

Canada exports almost half of its oil/gas productions to the US markets, which makes the

Canadian pipelines crucial part of the North American energy supply chain.(Foundation P. C.)

Canada’s Transmission Networks

In the following, detailed information about the pipeline transmission Networks of Canada which will be provided within the following table, to give a clearer view of the system pictures of maps will also be provided:

Canada’s transmission Network

Types of Pipelines

Feeder Pipelines

Transmission

Pipelines

Distribution

Pipelines

Purpose

Gathering Pipelines Moving crude oil

& natural gas

Transport crude oil, natural gas liquids.

Areas

From: wellheads

To: oil batteries and natural gas processing facilities.

From: batteries, processing facilities and storage tanks.

To: transmission pipelines

Length

250,000 Kilometers

25,000 Kilometers

Crude oil, natural gas

Natural gas

Major Pipelines moves products within a province & across province or international boundaries

115,000 Kilometers

Local distribution to companies industries and homes

450,000 Kilometers

(Association, 2013)

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Maps of the pipelines Networks in Canada

(Association, 2013)

Figure 1 Oil Pipelines Networks

Figure 2 Natural Gas Pipelines Networks

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The changing nature of pipelines

Pipelines play major role in Canada’s energy distribution, which has massive contribution in the

Canadian economic growth and development. Therefore, the pipeline networks are in continues development to meet the demand of the energy market.

The CEPA is currently investing tens of billions of dollars in pipelines projects (renewing, installing new pipelines networks), and expanding them to reach different areas within the country. (Association, 2013)

Investments in constructing new association facilities that ease the operation of moving oil

& gas, through pipelines from terminals and marine facilities. (TransCanada, 2014)

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Future of Aviation Fuel and Its Supply Globally

During the last 90 years, aviation turned from novelty to necessity. It enhanced globalization and reduced the time taken to transport goods and people from a place to other. Aviation is powered by petroleum fuels, which are special types of petroleum, based fuel that are of higher quality and often contain chemical accompaniments to reduce the risks of freezing or exploding due to different weather conditions that the airplane goes through.

The petroleum fuels are the most suitable as an aviation fuels for different reasons, they have more energy contents per unit volume than other energy sources, are easier to handle and move than solid materials, they also are available and offer the best prices. (Aviation)

Distribution of aviation fuel and Refueling

Dealing with aviation fuel is very critical, as its transporting and storage require special operation and maintenance considerations. Any miss-calculation of the quantity of the aviation fuel needed for demand could lead to huge loss because the quality of it will deteriorate overtime; moreover, any compromising in the measurements could lead to fatal accidents or engines failures for airplanes. (Polytechnic, 2014)

For huge airport supply, jet fuels are mostly transported by pipelines which are safer and most efficient. However, in other areas other transport modes are used such as ships and trucks. (Alex, 2007)These are used to transport aviation fuels from refineries to huge storage areas, and then a bowser will delivering the fuel to the parked airplane refueling. (Anup Sera, Mott MacDonald, 2009)

The above figure shows a typical jet fuel

distribution chain.(Qantas, 2014)

Figure 7 Jet Fuel distribution chain be for

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Main Aviation fuel suppliers

There are many aviation fuel suppliers located in different areas around the world. Those suppliers are licensed under international terms and conditions by the International Air Transport

Association. The main aviation fuel suppliers that are known internationally are big oil and gas companies such as BP, Shell, ExxonMobil and others.

Fuel prices

According to a recent study, air traffic grew by 6.1 percent every year during the last three decades. This growth led to increscent in the demand of aviation fuel. The aviation sector currently is considered as the second oil consumer in the transport sector. It burns around 5.8 percent of total oil consumption in the world. The advanced technological improvements in the industry has led to an efficient consumption of jet fuel and reduced it remarkably. (Mazraati,

2010)

Aviation fuel prices are affected by the price of crude oil as well as the cost of the environmental restrictions such as, trade schemes or taxes related to the usage of aviation fuel which will have an effect on the environment. Due to the political unrest, and the security issues that endanger the sources of fuel oil at the current time, the prices of aviation fuel may continue to increase. As a result, this will have a huge impact on airline industry and the financial situation of air service providers around the world.

The increscent of aviation fuel prices will be the main reason for small non-hub airports to shutdown. This leads to reduction of national air transport systems, which leads to sociopolitical issues and holds economic impacts for small communities around the world.

(James K.D. Morrison,Philippe A. Bonnefoy, R. John Hansman, 2010)(IATA, Jet Fuel Price

Development, 2014)

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This figure shows the fluctuations and increscent of the fuel prices in 2014, which are effected by different issues around the world, such as political, technological and the security of the resources of oil.

(IATA, Fact sheet, Fuel, 2014)

On the other hand, this increscent in the fuel prices will provide incentive for airline companies to improve their fleet’s fuel efficiency decreases their environmental effects from aviation fuel. The governments will also be determining procedures to have control over the fuel prices.

(James K.D. Morrison,Philippe A. Bonnefoy, R. John Hansman, 2010)(IATA, 2014)

Aviation fuel supply globally

Aviation fuel supply is facing a huge challenge which affects it now and in the future; this challenge is oil running out. Therefore, many countries are looking for new energy resources to be used as aviation fuel instead of petroleum products.

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Future of aviation fuel

In the past two years, aviation services produced around 689 million tones of CO2, which equals to 2% of the global CO2 emissions. The International Air Transport Association recognized the importance of addressing the environmental effect caused by aviation fuels. Consequently, the association determined number of goals to be achieved to mitigate CO2 emissions from air transport. These goals include:

Improvement of fuel efficiency by 1.5% per year from 2009 to 2020

Reduction of aviation CO2 emissions by 50% by 2050

In order to achieve these goals the association requires all the stakeholders which represent most of the world countries to work together, in order to reduce carbon emissions foot prints caused by aviation industry.

The strategy includes:

 Improvement in technologies and using sustainable low carbon fuels

 More efficient aviation operators

 Improvement of the infrastructure of aviation industry

(IATA, Responsibly Addressing Climate Change, 2013)

Bio jet fuels

One of the main goals of the future of aviation fuel is to have sustainable and environmentally friendly fuel for airplanes; bio jet fuels play an important role in the future of aviation. Compared to the petroleum based jet fuel, bio fuel can reduce up to 80% of the CO2 emissions.

Currently, more than 1500 flights over the world are operated using a mixture of bio jet fuels and conventional kerosene. These flights proved that the alternative fuels are safe and technically excellent to power airplanes. (IATA, Responsibly Addressing Climate Change, 2013)

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Problems with alternative aviation fuels

There are challenges facing the alternative aviation fuels and preventing them from being used on a bigger scale instead of petroleum based aviation fuels.

The challenges include the following:

A small financial support from investors

Liquid bio jet fuels are only alternative energy source to be used for air transport, and there are no policies or rules to secure the resources to supply the aviation sector, known that there are other transport modes that could use this source for energy.

(IATA, Responsibly Addressing Climate Change, 2013)

Aviation fuel supply in Canada

Canada has one of the most efficient and safest aviation systems in the world. They work with different global aviation organizations, in order to support their position in the industry in terms of safety, using new technologies and providing the best services for their customers. Moreover,

Canada’s aviation authorities are very responsible about the environmental impacts of the industry and work to minimize it In the future. (Canada, 2014)

There are only 13 airports in Canada out of hundreds domestic airports that are designed to serve international flights. Montréal–Pierre Elliott Trudeau International Airport is the busiest airport in the country. By 2013 the passenger traffic of the airport totaled 14.1 million passengers.

(Montreal, 2013)

A huge number of airports that are spread around Canada need massive supply chain for aviation fuel supply and distribution. Therefore, there are number of companies that are licensed to be the supplier of the aviation fuels to these airports. These companies are international fuel companies such as shell and BP, besides some Canadian companies that distribute the fuel to the airport and take care of its storage, engineering and maintenance such as Apron Fuel Services Company.

(services, 2014)

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Moreover, the Canadian authority authorized a company called FSM Management group, which is now a company responsible of all the technological aspects and infrastructures of the fuel systems in the major Canadian airports. This includes fuel facilities, solutions for small airports, construction and panning. These projects were provided with the best technologies that help in facilitating the distribution system of aviation fuel to these airports from the storage areas, and even bringing bulk fuels to the airports by different means of transport.

This shows how Canada is successfully managing it’s aviation fuel supply by using new technologies and updated systems in order to cover the demand of the aviation fuel in the airports (Group, 2014).

This picture shows some of the projects that are now under process to develop and build new infrastructures for aviation fuels in different airports in Canada; these projects value exceeds $350

million. (Group, Projects, 2014)

Figure 8 New projects for aviation fuel in Canada

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Aviation fuel future in Canada

Canada’s aviation fuel future is mainly focused on the environmental issues, as it is a very huge issue in the world and has a huge impact on the aviation industry. Therefore, there were some steps that Canada took to sustain the aviation fuel future.

World first 100% bio fuel powered flight

A Canadian based corporation called Agrisoma that sells non-food seeds for renewable oil productions was successful in planting crops that are ideal for producing 100% bio jet fuels. This broke the reliance on food corps that was causing a major issue for bio fuel usage. (Agrisoma,

2014) It was a huge Canadian innovation that could affect the whole aspect of using petroleum based jet fuels into a sustainable bio fuel that is environmentally friendly and efficient. This fuel was used on a number of aircrafts and was successfully powering both of their engines

(AGRISOMA, 2012). This innovation could lead to a coming petroleum free aviation. And will enhance the future of aviation fuel in Canada.

Emerging solutions for aviation fuel

In order to meet with Canada’s goal of carbon-natural growth by 2020, Canada’s aviation industry is also cooperating with aircrafts manufacturers, to develop the technologies used in the industry to push for new aviation fuels. The partnership is formed in order to have solutions in using sustainable jet fuels to supply the air industry in Canada and to provide preliminary study of new innovations for the project of using sustainable bio jet fuels in the future. (AirBus, 2014)

This project was successful as it has been performed on a passenger flight from Toronto city, to

Mexico City. The project combined using new technologies, and sustainable fuels that reduced up to 40% of CO2 emissions compared to regular flights. (AirBus, 2014)

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The Outlook for electrical network distribution systems in Canada

Overview of Canada’s electricity generation

The bulk transmission network in Canada is more than 160,000 kilometers of high voltage line which is enough to cross the entire country roughly 27 times. According to Canada’s vast geographic size, the electricity voltages are above 50 kilovolts in order to move electricity in bulk over long distances. Plus, to deliver electricity safely and reliably as well as economically to customers the electricity system requires different types of high voltage line such as 115,230 and

500 kilovolt levels (electricity transmission in Canada , 2014).

Canada’s provinces and territories are a part of a grid electricity network that is connected to the power plant, transmission lines and substations that pass the provincial and territorial borders.

These networks supply electric utilities with alternative power paths in case of emergencies. In addition, the provinces and territories can buy or sell power from each other if required.

Moreover, there are three power networks in Canada which are: Eastern, Western and Quebec networks that include Atlantic Canada (electricity transmission in Canada , 2014).

Electricity generation

The electricity in Canada is generated from a diverse mix of resources but the main one is hydro power with a 59% of electricity generation as moving water is the important source in Canada.

Also, other renewable resources are being used such nuclear while the secondary resources are the fossil fuel which consists of oil and gas. In addition, Canada has a huge capacity of hydropower with more than 348 billion kilowatt that puts Canada in the third largest country in the world that produces electricity through hydropower. Furthermore, the capacity is being developed in geographic places to take advantage of the hydropower. Those places are: Quebec as the main one, Labrador, British Columbia, Ontario and Manitoba (About electricity , 2014).

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The following charts shows the electricity generation in Canada by a different energy resources and how it was changed since 1990 until 2013 (Canada's electricity industry , 2014).

Industry structure

There are three activities that the electricity’s industry involved in (About electricity, 2014):

Various energy sources and technologies that are used to generate electricity.

A high voltage transmission of electricity for long distances in order to bring electricity from power plants to the end users.

Distribution of electricity to end users through low voltage local distribution power lines.

Ownership of Canada’s electricity network

Most of Canadian electricity is a public ownership while other are owned by investors such as

Nova Scotia power which is a private company but it is subsided by the government. Moreover, within the category of public and municipal ownership there are many companies that are a well-

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known in several places in Canada such as: Ontario, Toronto hydro, Horizon utilities and hydro

Ottawa (public and investor ownership, 2014).

Electricity trade

Canada is considered as the second largest electricity exporter in the world. Also, it is an active participant in North American electricity trade. The cross border between Canada and the United

States allows the electricity generations to operate more efficiently even if the local demand is low (electricity transmission in Canada , 2014). The following chart shows the export and import of electricity and how Canada export a lot of electricity as it is the largest exporter in the world

(Canada's electricity industry , 2014).

Electricity supply

Hydropower is the main energy resource that Canada use to produce electricity as it is heavily depends on the resources that are available in the country. Canada has a lot of energy resources, some cities in Canada are rich in water so they heavily rely on hydropower, those cities are: British

Columbia, Ontario, Quebec, Manitoba and Labrador, while other cities depends on fossil fuels and coal to produce electricity such as : Alberta, Nova Scotia, New Brunswick and Saskatchewan

(Canada's electricity supply , 2014). Furthermore, in 2012 Canada’s general power generations is estimated by 646 billion KWh from several resources which are: hydro by 380 billion KWh that was

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estimated to be around 59% , nuclear by 96.4 billion KWh by 15%, coal by 76.4 billion KWh and gas by 62.1 billion KWh of the general power generation (nuclear power in canada , 2014).

Electricity demand

The demand for electricity is expected to grow between 2010 to 2035 by 1% each year, especially in industrial sector. So in order to cope with the increase of demand the generation capacity will increase by the Canadian producers. The below chart shows the changes of electricity demand from 1990 to 2008 and from 1012 to 1035 in several sectors which are: residential, industrial, commercial and transportation (National energy board , 2014).

Electricity consumption

Canada is the sixth country in the world when it comes to electricity consumption of all sectors which is estimated to be 549.5 billion

KWH annually. The following figure shows the changes of electricity consumption through years and how it is not stable from 2000 to 2012

(electricity consumption , 2012).

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The Canadian Electricity Association (CEA)

It was established in 1891 and it is a national forum with a purpose of developing and evolving the electricity business in the Canadian region, CEA missions are to insure a safe, sustainable, secure and competition of electricity supply. There are many corporate utility members in CEA such as:

BChydro, ATCO electric, Trans Canada, Hydro Ottawa, Capital power, Nalcor energy and Toronto hydro. In addition, there are corporate partners program memberships such as: Ontario power authority, Golden association and Pulse energy (Canada's electricity industry , 2014).

The strategic goals of CEA are:

Infrastructure: the ability to build electricity infrastructure if needed to meet the increasing demand and to replace the old assets (Canada's electricity industry , 2014).

Technology: replace the old assets by new ones that contain technology.

Energy efficiency: gives advices to the customers in term of using electricity more efficiently and to minimize costs and environmental impacts.

Security: ensure security in long term, stability and reliability of electricity system.

Environment: make sure that produce electricity will not affect the environment.

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Transport energy infrastructure requirements in Canada

Transport Energy Infrastructure Requirements:

The Canadian government is dedicating more than 5 billion dollars in developing the transportation infrastructure sector for the upcoming three years; as the financial funding will cover all the country’s railway systems, airports and the land border crossing. (Paul Vieira, 2014).

The Roads Infrastructure Requirements:

The Canadian infrastructure report card in 2012 has rated the road facilities and the infrastructure in the country to be in a fair to a very poor condition that required a serious attention by the authorities to improve it. According to the report and the survey responds the roads infrastructure in the country are becoming more and more deteriorated over time. More than 50% of the roads are consider of having a good rating scale, and 32% of it are under the fair rating scale. On the other hand, more than 20% of the roads in Canada are rated to have poor to very poor conditions, as one in every four roads are facing over load capacity and huge traffic congestion which leads to serious delays of moving goods, natural resources bulks and people. (Canadainfrastructure, 2012).

(Canadainfrastructure, 2012).

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The Pipelines Infrastructure:

The Keystone XL pipeline project is an extended system of the Keystone pipelines that transfer oil in Canada as well as in the United States. The future crude oil pipeline project was first proposed in 2008 with infrastructure plan of 1,897 km length; 529 Km in Canada and 1351 Km length in the

US starting from Alberta state in Canada to the Gulf Coast in Texas America , the pipeline also will have a load transfer capacity of almost 830,000 barrels a day. (TransCanada, 2014).

Figure 9 Pipelines route Connecting Canada & U.S

A map shows the routes of The Keystone XL pipeline projects from Canada to the United States of

America. (TransCanada , 2014).

According to TransCanada, the project is aim to improve and rise the power of the economy of both countries and creates job opportunities for the Canadian and the American people

(TransCanada, 2014) it will also increase the production of the domestic Canadian crude oil

(TransCanada , 2014). However, the future outlook of pipelines system in Canada is not well

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accepted among the Canadian people. (Democracy Now, 2014). The statement of TransCanada came after the citizens and the public in Canada refused the new project plan as it will effect harmfully in the environment and destroy the wild life of the country and increase the pollution which will extract and move a toxic material oil sand. (Amy Goodman, Denis Moynihan, 2014).

On the other hand, the pipelines infrastructures in Canada are consider heavily important and one of the main transportation modes in the country; as 100 percent of the country natural gas exports and about 97 percent of oil are transported to the United states by pipeline. The current statistics draw a close look on the future expand of the infrastructure and the increase demand on the country natural resources exported which is expected to rise up to 33% in the year of 2035.

(Natural Resources Canada, 2014).

The figure below shows the predictable increase of the crude oil supply by pipelines and rail system in the next years. (Natural Resources Canada, 2014)

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Another pipeline project is the Energy East project by TransCanada that planned to be build from

Alberta to eastern Canada in Saint John and will hold a bigger capacity than the Keystone XL pipeline. The new construction pipelines would transport of estimated more than 1 million barrels of crude oil per day. The new project seems promising for the oil industries in the country for exporting as well as domestic usage. However, the east energy pipeline is facing the same rejects as the keystone XL by the protesters and the environment activities. (Brad Plumer , 2014).

Figure 10 Map of new pipeline project in Canada

A map shows the route of the Energy East project. (Brad Plumer , 2014).

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The Seaport/Marine Infrastructure

Port Metro Vancouver is one of the busiest and the biggest sea ports in Canada with 28 marine cargo terminals that connects with a rail loads system. In 2013, the port handled an estimated of

135 million tons of cargo and trade with about 160 global economy. (Port Metro Vancouver,

2014).

According to the Canadian Marine Act, the Canadian sea ports have conduct a project plan vision by 2050; the vision of port metro Vancouver consisting upon numbers of persuaders:

Green shipping standers: the ports is aiming to contribute of reducing gas emission by 50% in the year of 2050 (Sandra Winkler, 2014). To do so, the port will offer discounts to the docking ships that meets the minimum required of /environmental level. These persuaders are also followed by the Prince Rupert Port Authority. (Danny Bradbury , 2014).

Finding other energy resources: numbers of renewable fuel such as solar, nuclear, hydro and wind energy power provide variety of energy instead of oil, coal and other fossil fuel. For example the sun provides 23,000 cubic mile of oil. (Dr. Ripudaman Malhotra, 2014).

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The Rail Infrastructure

One and the main important aspects of Canada’s railways cargo system outlook is to improve the safety regulation and standers in it, especially of handling and moving flammable, dangerous freight such as oil and nuclear materials.

The country faced numbers of reported train accidents every year, some of them are considered fatal and deadly with big human, environmental and monetary lost.

In 2013, after the derailed train accident in Lac-Megantic, Quebec the public in Canada are concerned about the safety systems of transporting crude by rail. The regulated authorities in

Canada has requested the railways industries and companies in the country to maintain or renewed the tanker cars and the train cars terminals. In addition, Transport Canada has put numbers of specification on rail tank cars to identify in detail the quality and the designs of each tank car. (Canada Association of Petroleum Producers, 2014)

An example on the tank car specification

(Canada Association of Petroleum Producers, 2014).

At the end of 2015, the capacity of the western Canadian rail is estimated to increase up to 1.0 million barrels per day in a comparison of 200,000 barrels per day in 2013. (Canada Association of

Petroleum Producers, 2014).

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Conclusion

The reported document above provides in details analyzing information of transport requirement and the different energy resources for the infrastructure in Canada. The information covers and explains the socio political issues with the security challenges that face the transportation industries in Canada. Canada has set and established numbers of future projects and objectives to improve the energy supply within the transportation sector and at the same time the country insure to reduce the gas emissions and have more sustainable environment.

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