Tidewater Midstream said that it would proceed with a new gas plant near Grande Prairie 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.
The project will have two anchor customers with five-year take-or-pay agreements for up to 55 per cent of plant capacity. Tidewater said that it is finalizing commitments from “several other producers” for the remaining plant capacity, and that “due to significant interest” it is also considering a Phase 2 expansion.
Operations are targeted to start up in mid-2019.
