Spectra announces Montney gas processing plant

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, June 11 -- Spectra Energy announced June 10 it is building a 200 MMcfd natural gas processing plant west of Dawson Creek to service the Montney shale in northeast British Columbia.

Construction of the Dawson processing plant, pending regulatory approval, will take place in two phases, with the first 100 MMcfd available in late 2011 and the remaining capacity available in early 2013.

Spectra said capacity at the plant had already been fully contracted by long-term agreements with customers.

Canada’s National Energy Board in late March approved construction by Spectra’s BC Field Services subsidiary the 250-MMcfd Fort Nelson gas processing plant 75 km northeast of Fort Nelson, BC. The plant will serve increased shale gas production from the Horn River basin (OGJ Online, Apr. 6, 2010).

NEB forecast in April that deliverability from the Montney play would increase to 1.5 bcfd from 387 MMcfd by 2012, even following the middle of three pricing scenarios it used in the forecast (OGJ Online, Apr. 26, 2010). Horn River deliverability using the same pricing would rise to 462 MMcfd from 41 MMcfd by 2012, according to the forecast.

Contact Christopher E. Smith at chriss@ogjonline.com.

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