Tidewater Midstream & Infrastructure Ltd., Calgary, has commissioned its previously announced Pipestone Montney sour gas processing plant near Grande Prairie, Alta.
Designed to process 100 MMcfd of sour gas at full capacity, the plant began processing operations in mid-September and is currently processing 30 MMcfd during its start-up phase, the operator said.
Tidewater said it expects processing to ramp up to (or near) full capacity by yearend.
The Pipestone Montney plant—capacity of which is fully contracted with customers including two investment-grade counterparties—includes an acid-gas injection well, saltwater disposal well, and pipelines that directly connect to Tidewater’s Pipestone gas storage facility.
The plant—which is anchored by two 10-year, take-or-pay agreements with Kelt Exploration Ltd. and Pipestone Energy Corp. for 30 MMcfd each—also is connected to both the Alliance and TC Energy pipeline network.
In an August presentation to investors, Tidewater said there is large customer support for a Pipestone Plant Phase 2 project—for which it already has a 10-year, 20-MMcfd take-or-pay commitment—upon which the operator plans to reach a final investment decision in the coming months.
Contact Robert Brelsford at [email protected].