AltaGas Services Inc., Calgary, is acquiring key natural gas gathering and processing facilities assets in southern Alberta from TransCanada PipeLines Ltd., Calgary, for $14.6 million (Can.). The assets include working interests of 65% in the Parkland gas plant, 70% in the Mosquito Creek gas plant, and 5% in the Vulcan gas plant.
These facilities have current gross throughput of 27 MMcfd, 32 MMcfd, and 43 MMcfd respectively. The Parkland and Mosquito Creek sweet gas plants are interconnected through 70 km of gathering lines.
Located near the town of Nanton in southern Alberta, this gathering and processing system will comprise a new operating area for AltaGas. The area has substantial upside potential from 12 underdeveloped townships surrounding the gathering system, says the firm.
AltaGas has also acquired 33 km of pipeline adjacent to its Bonnie Glen operating area. The pipeline will be integrated with the three AltaGas gas plants in the area and has excess capacity, allowing for future growth. Gas will be delivered through this pipeline to the TransCanada Transmission and ATCO Pipelines systems.
So far this year, AltaGas has acquired interests in six gas processing plants and associated gathering systems and has expanded its existing gathering and processing assets for total investment of over $45 million.
"The potential to continue to acquire and expand natural gas facilities remains high in Canada due to robust natural gas markets and industry restructuring," said David Cornhill, president and CEO of AltaGas. "We expect to take further advantage of this opportunity to accelerate growth and add shareholder value."
