By OGJ editors
HOUSTON, Oct. 21 -- EnCana Corp.'s western Canada natural gas storage capacity is expected to rise 40% to more than 135 bcf with the development in southeastern Alberta of a new 40 bcf gas storage facility.
The Countess storage facility, designed for peak injections of 950 MMcfd and peak withdrawals of 1,250 MMcfd, will use two depleted underground gas reservoirs 85 km east of Calgary. The first 10 bcf of new storage capacity is scheduled to be available in second quarter 2003, and the additional 30 bcf, in April 2005.
"The new Countess facility will be used, not only to help manage sales and optimize the value of (EnCana's) produced gas, but will also expand the Canadian capacity available to other producers and marketers for managing gas supplies and sales," said Bill Oliver, president of EnCana's midstream and marketing division.
The facility will be operated commercially as part of the AECO Hub, which is comprised of 85 bcf of gas storage capacity at Suffield, in southeast Alberta, and 10 bcf of gas storage at Hythe, in northwest Alberta. Once Countess is complete, EnCana will own and operate about 180 bcf of gas storage capacity across North America, with facilities in Alberta, California, and Oklahoma.
Construction is currently under way to double the capacity of EnCana's Wild Goose storage facility in northern California to 29 bcf of storage. With the two expansion projects complete by 2005, total peak withdrawal capacity of EnCana's North American storage network is expected to grow to 4 bcfd.
"The development of this facility exemplifies an ideal business opportunity resulting from the merger of EnCana's predecessor companies. The Countess reservoir first produced gas for PanCanadian Energy Corp. in 1984. Now depleted, it has a second life as a new and vital part of the AECO Hub. . .established by Alberta Energy Co. Ltd. in 1988," Oliver said.
