Tervita to build new Montney water disposal network valued at $25MM to $30MM

Image: Business in Vancouver

Tervita Corporation says it has entered into a long-term deal with an unnamed senior producer to develop a pipeline connected dedicated disposal infrastructure project “in one of the most prolific areas of activity in the Alberta Montney.”

Under the agreement, Tervita is developing a water disposal network including multiple water disposal wells and a centralized water injection facility pipeline connected to the producer’s production facilities.

“Tervita now expects 2019 estimated growth capex to range from $90-100 million relative to $60-100 million prior, which indicates the project may cost $25-30 million,” GMP FirstEnergy analyst Ian Gillies noted.

The disposal infrastructure is expected to be constructed throughout 2019 and commissioned in Q1 2020.