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Go ahead for BC gas complex
Calgary-based Veresen, a partner in Oregon’s Jordan Cove LNG project, has sanctioned a C$715 million gas processing facility in northeastern British Columbia, its second new plant under construction in the area.
The Tower complex, part of Veresen’s C$1 billion infrastructure development program, will have capacity for 200 million cubic feet per day of rich gas and 20,000 barrels per day of condensate and natural gas liquids from the prolific Montney resource pay.
The Tower project involves the Cutbank Ridge partnership of Veresen, Encana and Japan’s Mitsubishi, which agreed last year to undertake about C$5 billion of projects.
Work is already proceeding on the C$860 million Sunrise gas plant, Burstall ethane storage facility and Aux Sable fractionation expansion.
Veresen said the Montney formation is Western Canada’s “most actively developed gas resource play and continues to deliver strong results even against a challenging macro environment.” It is one of the anchor fields positioned to supply feedstock gas to any LNG projects that get launched in British Columbia.
The company said its 55 percent to 60 percent share of Tower will be funded from its C$1.275 billion credit facility, which is largely undrawn.
Additional growth projects Company President Don Althoff said that beyond 2018 Veresen has a “number of material growth projects” under development, including Jordan Cove LNG and the Pacific Connector Pipeline, a key transportation link for feedstock gas to Jordan Cove.
Jordan Cove, despite being caught up in a legal tussle over the plans to convert the facility to an export from an import proposal, is pressing ahead with design work on a liquefaction facility to initially ship 6 million metric tons a year of LNG from 1 billion cubic feet per day of gas.
The Port of Coos Bay in Oregon offers what Veresen describes as a “low cost shipping benefit for exporting LNG” to markets throughout the Asia Pacific region, Hawaii, Alaska and South America.
Jordan Cove has already been granted an export license to ship LNG to Free Trade Agreement countries as well as a conditional order to export to non-FTA countries.
- Gary Park
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