Opportunities are created through weaknesses in the infrastructure of any industry. While the refined products industry in Western Canada is reasonably mature, related infrastructure has not kept pace with growth. Most recent major capital expenditures by North American refiners have been directed towards product quality and improved specifications, most notably the de-sulphurization of gasoline and diesel. Bluesky Terminals Inc. (BTI) is looking to capitalize on the weak links in this industry, specifically transportation and supply.

BTI is focused on constructing assets in areas which have been under facilitated with regards to refined products storage and distribution. Each location will be strategically identified as a site able to offer regional competitive advantages to existing alternatives. While marketable ultra low sulphur diesel and gasoliine will be the core products, renewable fuels such as ethanol and biodiesel will figure prominently.

 

The Northwest Alberta and Northeast B.C. region is overflowing with activity surrounding the main industries of the region, namely agriculture, forestry, mining and oil & gas. Grande Prairie is the largest city in the area with a population closing in on 50,000, and is located some 450 km from Edmonton, the nearest product supply point. Grande Prairie's population rose 27.3 percent between 2001 and 2006, placing it as the second fastest growing city in Alberta.

The Bluesky terminal is located in close proximity to major centers such as Grande Prairie, Peace River, High Prairie, Valleyview, Fairview, Ft. St. John and Dawson Creek where a truck load of diesel could be sourced from the BTI terminal and dropped off to the customer in an afternoon saving freight costs and lessening truck transport time. Destination points further north and northwest will realize increased logistical value from the BTI terminal.

Spot opportunities to leverage the McLennan location advantage will also be explored when dealing with the rapidly growing NWT demand. The BTI site sits right on the only rail line that connects the rest of Canada to the NWT providing a natural supply outlet for the burgeoning mining industry.

The construction of a rail siding to receive product from Edmonton via rail car is key to providing a significant advantage in serving BTI’s core market. Initial stages of this project are currently in progress and are expected to be completed by 4Q 2007.