Birchcliff to take over operatorship at Gordondale gas processing plant

Birchcliff Energy Ltd. and AltaGas Ltd. have entered into a contract operating agreement (COA) whereby Birchcliff will take over operatorship of AltaGas' 150 MMcfd Gordondale sour natural gas processing plant in Bonanza, Alta. 

The companies, in a joint release June 13, said the deal is expected to reduce operating costs and increase natural gas liquids (NGL) recoveries.

With the agreement, Birchcliff will “leverage cost optimization opportunities that exist between its 100% owned and operated gas plant at Pouce Coupe and the Gordondale [plant],” which are sited about 6 miles apart and are pipeline connected, the companies said. Pouce Coupe, which lies in Birchcliff's Montney/Doig area, is licensed to process up to 340 MMcfd of natural gas.

AltaGas will continue to own 100% of the Gordondale plant “with no plans to reduce its ownership.” The gas processing plant, sited in the Gordondale area of the Montney reserve area about 100 km northwest of Grande Prairie, will continue to operate under the existing long-term take-or-pay processing agreement, with Birchcliff as operator for the remainder of the agreement’s term, which will continue until at least Dec. 31, 2032.

Operations at the plant, the only one in the area to offer high efficiency recovery of NGLs (deep cut capability), began in October 2012.

Birchcliff has also entered into additional long-term tolling agreements with AltaGas whereby Birchcliff will market additional LPG volumes through AltaGas’ global exports platform.