AltaGas plant in Montney resource play will process liquids from Encana natural gas.
CALGARY: AltaGas Ltd. will construct a 120 million cubic feet per day (Mmcf/d) gas processing facility and a gas gathering system in the Montney resource play, approximately 100 kilometres northwest of Grande Prairie, Alberta.
The plant, located in the Gordondale area, will capture liquids from natural gas supplied by Encana Corp., an energy company based in Calgary.
The $235 million gas processing facility and gathering system will be in service by late 2012, but by using existing infrastructure in the area, AltaGas anticipates there will be processing for early production by mid 2011.
The project is subject to regulatory approval.
“The continued strength of natural gas liquids prices offers Encana opportunities to capture additional value and enhance project returns by stripping the propane, butane and ethane from the extensive liquids-rich production in our deep basin resource plays,” said Mike Graham, Encana’s Canadian division executive vice-president and president.
The Montney resource area is one of the largest, low cost, liquid-rich resource plays in the Western Canadian Sedimentary Basin. AltaGas said the plant will provide a midstream solution to a number of producers in the area.
“The addition of deep cut facilities to the project allows producers to extract additional value for liquids from the gas they bring to the plant for processing,” the company said in a release.
AltaGas is a Calgary-based energy infrastructure company.