Facility will be used to extract ethane and other hydrocarbons from natural gas.
REGINA – A subsidiary of SaskEnergy has entered into an agreement with Calgary-based Mistral Midstream Inc. to build a $72.5 million natural gas plant in southwest Saskatchewan.
Bayhurst Energy Services Corp. said the state-of-the-art facility will be used to extract ethane and other hydrocarbons from natural gas being transported from Saskatchewan’s Bakken formation.
The “straddle plant” will be located near SaskEnergy’s pipeline system in Viewfield, Sask., where it will be used to remove the natural gas liquids so it could be transported for home and business use.
The natural gas will then be compressed and put back into the transmission pipeline.
BESCO will hold a 10% share in the facility.
The plant is expected to be operational in early 2015, with construction slated to begin next year.
©The Canadian Press