Altagas1700, 355 - 4th Avenue, S.W.
CA, T2P 0J1
- Tel: 403-691-7575
- Fax: 403-691-7576
- Website: www.altagas.ca
Birchcliff Energy and AltaGas have entered into a definitive agreement for a long-term natural gas processing arrangement at AltaGas' deep-cut sour gas processing facility located in Gordondale, Alberta. The new Processing Arrangement will be effective from January 1, 2018 and will replace the parties existing Gordondale processing arrangement. Under the Processing Arrangement, Birchcliff is being provided with up to 120 MMcf/d of natural gas processing on a firm-service basis, and Birchcliff's take-or-pay obligation is 100 MMcf/d. The term of the Processing Arrangement is for at least 15 years, subject to extension in accordance with the terms of the agreement.
AltaGas Ltd. has entered into a non-binding Letter of Intent on January 20, 2017 with a significant Montney producer to construct a 120 Mmcf/d deep-cut natural gas processing facility and a natural gas liquids separation train, capable of processing up to 10,000 Bbls/d of NGL mix, and rail terminal. The Facilities, which are to be located in another area of the Montney separate from AltaGas’ current operations, are expected to have access to the CN rail network allowing for the transportation of propane to the Ridley Island Propane Export Terminal which AltaGas declared a positive Final Investment Decision on earlier this year.
AltaGas Ltd. has received regulatory approval from the British Columbia Oil and Gas Commission for the doubling of the Townsend Facility to 396 MMcf/d and to retrofit the existing 198 MMcf/d shallow-cut Townsend Facility to a deep-cut facility at a future date. The initial expansion will be a 100 Mmcf/d shallow-cut natural gas processing facility to be located on the existing Townsend site, adjacent to the currently operating Townsend Facility. The estimated cost of Townsend Phase 2 will be approximately $85 to $95 million. In addition, incremental field compression equipment, estimated to cost between $35 to $45 million, will be required to move raw gas production from the Blair Creek area to Townsend. Long-lead major equipment has been ordered and Townsend Phase 2 is expected to begin commercial operations in October 2017. It is expected that Townsend Phase 2 will be fully contracted with Painted Pony Petroleum Ltd. under a 20-year take-or-pay agreement.
AltaGas Ltd. has announced that a sublease and related agreements have been signed with Ridley Terminals Inc. to develop, build, own and operate the proposed Ridley Island Propane Export Terminal, to be located on Ridley Island near Prince Rupert, British Columbia on a portion of lands leased by Ridley Terminals from the Prince Rupert Port Authority. The agreements are an important first step for beginning the regulatory and engagement phases of the project.