AltaGas plans construction of midstream assets

January 25, 2017 By    

AltaGas Ltd. plans to construct a deep-cut natural gas processing facility, a natural gas liquids (NGL) separation train and a rail terminal in the Montney region of British Columbia, Canada.

The natural gas processing facility will be capable of processing up to 120 million cu. ft. of gas per day, and the NGL separation train will be capable of processing up to 10,000 barrels per day of NGL mix, AltaGas says. The facilities are expected to access the Canadian National rail network, allowing for the transportation of propane to the Ridley Island Propane Export Terminal.

The deep-cut processing facility will likely be jointly owned, while the NGL separation train and rail terminal will be fully owned by AltaGas, the company adds. The deep-cut processing facility is expected to cost about $100 to $110 million and the NGL separation train and rail terminal are expected to cost about $60 to $70 million.

Completion of the project is subject to negotiation and execution of definitive agreements, which AltaGas aims to have signed within the first quarter of 2017. The facilities are expected to be in operation in early 2019, according to AltaGas.

“We look forward to working closely with a new customer and are excited to bring significant new development to yet another area of the Montney,” says David Harris, president and CEO of AltaGas. “This development broadens our customer base and drives continued growth for our midstream business, including our energy export strategy.”

AltaGas is an energy infrastructure company with a focus on natural gas, power and regulated utilities.

Megan Smalley

About the Author:

Megan Smalley is the associate editor of LP Gas magazine. Contact her at msmalley@northcoastmedia.net or 216-363-7930.

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