Wolf Midstream has taken final investment decision on the 600-MMcfd Phase III expansion of its NGL North System. The project will also include a natural gas-fired cogeneration plant, expanded de-ethanization capacity, and an expanded unit-train rail terminal at Wolf Feedstock Separation (WFS).

NGL North recovers, separates and transports NGL, including ethane, propane, butane, and condensate, from natural gas in Alberta. The vast majority of NGL production from Phase III is contracted under long-term, fixed-fee commercial arrangements against investment-grade counterparty credit.

Phase II expansion is under way and expected to increase NGL North’s production capacity to 90,000 b/d by 2027, separating a total of 2.1 bcfd. Phase III will move “the platform towards its ultimate design capacity of approximately 3 bcfd and 170,000 bpd of NGL production,” said Bob Lock, president and chief executive officer of Wolf.

Wolf has secured all required permits and approvals and has begun Phase III development concurrent with Phase II. Under Phase III, Wolf is adding a third NGL recovery train at each of its two northern Alberta recovery sites: Wolf Recovery Facility 1 (WRF 1), near Mariana Lake, and WRF 2, northwest of Fort McMurray.

At WRF 2, which is under construction, the additional train will increase total processing capacity to more than 1.1 bcfd. WRF 2, including this expansion, is anticipated to be in service in early 2027.

At WRF 1, the additional train will increase total processing capacity to 1 bcfd. Wolf expects the WRF 1 expansion be in service mid-2028.

Recovered NGL will be shipped by pipeline to WFS for separation into high purity, specification products. WFS in Sturgeon County, Alta., is being expanded to include a third de-ethanizer tower, increasing total NGL production capacity to 110,000 b/d, including more than 80,000 b/d of ethane. This expansion is expected to be in service early 2027.

Wolf is also adding a 37-Mw natural gas-fired cogeneration facility at WFS to generate both heat and power for the site, starting in 2028. The unit-train expansion at WFS will bring initial rail-loading capacity to 60,000 b/d to accommodate both Wolf and third-party volumes, the company said, expecting it to enter service later this year.

Phase III costs will total about $500 million, with support from Wolf’s shareholder, Canada Pension Plan Investment Board (CPP Investments).