Why CP3 matters

From the Desk of the CEO Jan 2021, Doug MacLellan

“To each, there comes in their lifetime a special moment when they are figuratively tapped on the shoulder and offered the chance to do a very special thing, unique to them and fitted to their talents. What a tragedy if that moment finds them unprepared or unqualified for that which could have been their finest hour.” - Winston Churchill

In my humble opinion, we at Canadian Prosperity Pipelines Corporation (CPPC) are at that special moment. We have all been tapped on our shoulders. We have a vision we believe in and we now have an opportunity to step up. This team is extremely talented.  In Eugene Van Den Berg we have a phenomenally talented financial talent with experience in running and building a project that embodied empowerment. Add his honesty and integrity and we are truly fortunate. The addition of David Parker has given us an executive with engineering, managing and project management experience unmatched. Again, another person with true integrity and honesty. Then Peter Poos, a man who has exhibited excellent engineering and managing talent with great experience and again a person with integrity and honesty. In Collin Daniels, we again have an engineer with solid project construction experience and a great understanding of the regulatory rules we need to follow. Collin is another example of what we expect, honesty and integrity. CPPC has added EnerNext to our stable of talent and there again we have people with vision, integrity and honesty, and a great experience. That is why we can comfortably claim "that we do pipelines and infrastructure differently". It is this difference that builds true Canadian culture. Our engineering associates in Tridyne have also shown they are up to the task of tackling hard issues with solid engineering and facts and science.

In summation, I look at the team we have to date and feel confident that the next big step we face will be met with vigor and enthusiasm. We are ready for OUR FINEST HOUR.

I appreciate being associated with all of you talented people. Let us take the opportunity presented and make the most of it.
Doug - Jan 20, 2021



From the Desk of the CEO, Doug MacLellan


Like all provinces within Canada, Alberta and Saskatchewan have provincial resources to market. Currently, oil is marketed through pipelines and rail lines. Marketing by rail is not as safe as pipelines and takes marketing capacity away from many goods such as grains, grain oil, lumber, and potash.

Canadian oil that is not sold and utilized within Canada should have access to world markets. There are regulatory, social and political issues hindering current marketing strategies.

Alberta and Saskatchewan need market access for the growing oil production in order to add to the revenue of Canada and further support the health and welfare of all Canadians. The taxes and royalties from oil production go directly to Canadian infrastructure not only in the west but for all Canadians. In addition, the lesser access to rail for other products affects western farmers and affects those who ship materials west from the east for sale. The financial health of Canada is affected by the lack of market access for Western oil production.

Canadian Prosperity Pipelines Corporation (CPPC) offers a solution and that solution also includes an embedded empowerment model that will assist in reducing poverty of indigenous peoples by including them in the equity and revenue streams of the pipeline.

CPPC is developing route alternatives and must address all possible routes. Our plan is to go east to tidewater. Suggestions have been to go in many directions. Ultimately the route will have to meet financial thresholds as well as social license issues and political and regulatory approvals. The options beyond straight east are numerous.

CPPC is committed to picking the right route for reasons relative to how the local inhabitants feel when considering factual evidence and constructing and operating the pipeline ethically and with respect to environmental standards. Our goal is having the pipeline and pumping stations with zero carbon emission effects.  CPPC will do pipelines differently.

Routes are many, the solution is one.

We are about infrastructure and Indigenous reconciliation. CPPC’s reason(s) for existing may be described as follows:

Resource development has been central to creating economic wealth in Canada. While CPPC is focused on building prosperity, it is designing, building, and looking to operating the Canadian Prosperity Pipeline Project (CP3), a project under strict environmental standards with a vision towards lifting and supporting a broad Canadian social fabric that will benefit from more wealth generation. All that CPPC undertakes will be guided by its values and corporate commitment allowing it to also take a leadership role in the transition to a low-carbon future.

CPPC is Doing it Differently: – our vision – to build a Pipeline with Purpose posing questions and providing answers to many What Ifs.

CPPC is about:

    • Empowerment; Shared Value and Shared Values; Building Prosperity; Collaboration and Transition;
    • connecting its purpose of building prosperity to meet the needs and challenges of Canada and the broader Canadian society. The economic business driver that propels the creation of prosperity within CPPC is the transmission of energy to eastern tidewaters and maximizing domestic energy security by providing eastern Canada access to western produced diluted bitumen. CPPC is about Canadians and Canada as it moves towards answering many “What Ifs”?;
    • What If:
      • CPPC was part of a Corridor of New Growth, New Opportunities and Connectivity for Indigenous peoples and in fact all Canadians. The CPPC story is about collective wealth, shared values, and planning for transition. Canada has a wealth of resources;
      • CPPC could meet its business goals of transporting Canada’s energy to eastern tidewaters and meet eastern needs, empower Indigenous peoples, build societal prosperity, be environmentally friendly and sustainable, and provide opportunities for wealth creation along its route;
      • CPPC was a vehicle to provide other growth opportunities and connection opportunities? CPPC is not just about a pipeline. It is about Ideas that support the whole of Canada! Doing it Differently means we approach the entire national corridor that the pipeline travels within as a collective opportunity zone. Some of CPPC’s ideas consider the following:
      • What if each pump station offered an opportunity to share business opportunities with local Indigenous groups and/or towns and regional communities?
      • What if some pumping stations are powered by small nuclear reactors where excess power is provided to the local region to power settlements and businesses?
      • What if waste heat if there is any was collected to provide a source of energy for commercial greenhouses at each pump station which were owned and operated by local businesses?
      • What if fiber optic cable were run alongside the pipeline to connect isolated communities?
      • What if microwave transmission towers were located at each pump station?
      • What if other pump stations were powered by electricity from Manitoba Hydro, Ontario Hydro or Quebec Hydro?
      • What if in select locations along the route there were business opportunities to offtake bitumen for local business needs (i.e., production of asphalt for roads, manufacture of carbon fibre)?
      • What if our bitumen and oil and gas are the resources of today that are used to fuel development and connection for the day we are ready for the transition to a newly powered economy that collectively INCLUDES all Canadians?

This project will cost an estimated ~CAD 24 billion and produce a 24% rate of return before tax (~16% ROR after-tax) and give Canada an alternative for marketing energy both to eastern Canadian refiners as well as international markets on other continents. The project also offers a backstop for energy security for Eastern Canada. The building and operation of this project include an empowerment model that proposes to share equity in the project on a free allocation basis affording Indigenous groups the opportunity to leverage it for a higher level of participation. There is also an allocation set aside for environmental research for energy transition.

The CP3 project is being developed based on Environmental, Social and Governance guidance. For instance:

    • this project will use engineering innovation to design a pipeline with the latest in spill monitoring and pumping rate advances;
    • the pipeline will operate as a Net Zero Carbon/GHG project and meet all environmental standards;
    • as CPPC values inclusivity, respectfulness, and empowerment we expect little staff turnover;
    • CPPC values innovation and fact-based decision making and will require staff to be certified professionals who meet required standards;
    • the staff will be mature and experienced and abide by our code to be lawful at all times.

The Covid-19 crisis has many politicians seeing the diversity within Canada as our forward-looking opportunity. They have seen varying economic crises from coast to coast. We, at CPPC, realize that the strength of the incorporated empowerment model, added to the indirect and direct job benefits of the construction and operation of CP3 along with the opportunities provided along the corridor, fit well into a rebuilding of Canada’s economy after Covid-19 and sustains it well into the future when we look at a transition to another energy solution beyond combustion of fossil fuels.

CP3 is a pipeline with purpose, to be build in a corridor with purpose: to build a strong, prosperous Canada.


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