Westcoast Gas Services Strikes Deal with Petro-Canada to Build $45-Million Natural Gas Processing Plant

Strategic Insights -

A major milestone has been reached in the development of British Columbia's natural gas industry with Westcoast Gas Services, a Calgary-based marketing subsidiary of Vancouver-based Westcoast Energy, striking a deal with Petro-Canada to build, own, and operate a $45-million natural gas processing plant in the northeast gas patch. The plant, expected to be operational by the end of next year, will process 70 million cubic feet of gas per day from Petrocan wells in the Jedney area, 180 kilometres northwest of Fort St. John. This new facility will not only provide a boost to the local economy but also showcase Westcoast Gas's commitment to innovation and sustainability.

Key Takeaways:

  • The $45-million natural gas processing plant, to be built in British Columbia's northeast gas patch, will handle 70 million cubic feet of gas a day produced from Petrocan wells in the Jedney area.
  • The plant, expected to be operational by the end of next year, will be connected to Westcoast Energy Inc.'s main pipeline network via a 26-kilometre pipeline.
  • The Jedney plant will be the first plant built from scratch by Westcoast Gas Services, the Calgary-based marketing subsidiary of Vancouver-based Westcoast Energy.
  • Westcoast Gas bought a smaller gas plant in northeastern British Columbia last year, further solidifying the company's presence in the region.
  • The plant will use a less costly process to separate unwanted acid gas and reinject it into the ground, making it an innovative and sustainable addition to the industry.
  • Mr. Michael Stewart, president of Westcoast Gas, highlighted the plant's flexibility, stating that it can be fabricated off-site and relocated if needed, providing a more efficient use of resources.

Statistics:

  • The Jedney plant's processing capacity is 70 million cubic feet of gas per day.
  • The plant will be connected to Westcoast Energy Inc.'s main pipeline network via a 26-kilometre pipeline.
  • Westcoast Gas Services has invested $45 million in the development of the new plant.
  • The plant is expected to be operational by the end of next year.

Sources:

  • Westcoast Gas Services Inc.
  • Petro-Canada
  • Westcoast Energy Inc.
  • Robert Williamson, "British Columbia Bureau", Vancouver BC