Veresen starts up second Montney gas plant

Veresen Midstream LP, a 50-50 venture of Veresen Inc., Calgary, and Kohlberg Kravis Roberts & Co. LP, New York, started up the 400-MMcfd Sunrise processing plant on Sept. 27 in the Montney area of northeastern British Columbia’s Dawson region.

Sunrise is the second of three processing plants that support Calgary-based Encana Corp.’s condensate-focused growth plan in the Montney. The first plant, the 200-MMcfd Tower rich-gas processing plant, began operating on Sept. 20 (OGJ Online, Sept. 27, 2017).

Both plants began operations ahead of schedule and under budget, Encana said. The first of two 200-MMcfd trains at the third plant, the Saturn processing plant, is expected to be in-service by yearend, followed by the second train during first-half 2018.

The Towerbirch lateral pipeline that connects all three plants to the NGTL system also started up on Oct. 1.

Encana’s midstream agreement with Veresen Midstream LP enables Encana via the Cutbank Ridge Partnership to construct and operate the Tower, Sunrise, and Saturn plants, as well as any future building opportunities, on behalf of Veresen Midstream on a contracted basis.

Veresen Midstream funds and owns the facilities and Encana pays to use them through a fee-for-service agreement.