Tidewater Midstream says that it will proceed with a new gas plant near Grande Prairie, Alta. with processing capacity that is tailored for the region’s liquids-rich Montney natural gas production.
The project has an estimated capital cost of approximately $210 million.
Located in the Pipestone area, the 100 MMcf/d sour gas plant will have acid gas injection and 20,000 bbls/d of NGL processing capability, as well as an extensive gathering pipeline network, the company says.
The project will have two anchor customers with five-year take-or-pay agreements for up to 55 percent of plant capacity. Tidewater says that it is finalizing commitments from “several other producers” for the remaining plant capacity, and that “due to significant interest” it is considering a phase two expansion.
The company says the project is expected to have one of the highest operational onstream times in the area, regardless of regulated pipeline outages, due to storage access.
Operations are targeted to start up in mid-2019.
