Oilsands Review - September 2006

NEWS 35

“The growth of demand in Asia has been quite good for Canadian markets,” Clark explains, but adds that this also means the landscape for Canadian sulphur export has become less adaptable in recent years. In 1998, Canada’s largest market for sulphur was Morocco, representing 13 per cent of sales. In 2005, almost 70 per cent of Canadian sulphur was sold to China.

“The concentration in so few markets is very difficult for industry because they don’t have flexibility,” he says. “If China doesn’t take tonnage equally every month from Vancouver, companies pour it into blocks. [If China doesn’t take it], the blocks get bigger and we lose the sale. The more dependent we become, the more difficult the logistics will become. It’s difficult for someone new to enter the market.”

Right now, sulphur produced from the oilsands never sees the sea. It is used in North America, coming from Suncor Energy, and the Athabasca Oil Sands Project (which produces sulphur at its Scotford upgrader and refinery complex in the well-connected “industrial heartland”). Syncrude places it in blocks, which Clark

says is likely an investment decision by the joint venture’s owners. There is no railway connection to the Athabasca oilsands mines, and rail is the optimum way for sulphur to travel to tidewater. Suncor currently sends its sulphur to the Agrium fertilizer production facility in the Edmonton area, but Clark explains that it doesn’t always result in positive netbacks.

60 New Units on Order - 10 in Stock

2006 Kenworths, Tandem and tri-drive, DOT 407 aluminum tanks, 18 and 22 cube, with quad wagon

New Heil DOT 407 Sour Sealed 1 or 2 compartment 38 and 46 cube tridems and 62 cube Super B’s

New 2006 Polar DOT 406, 1 or 2 compartment crude trailers,
10 in stock

8x26x7 high Gooseneck trailer, 3x7k axles, aluminum wheels, insulated

19' Mustang office trailer, 16" tires, computer ready,
environmental bathroom facilities, sealed and insulated A/C,
hand built, have shelves built to your specs