AltaGas to construct natural gas processing facility in Alberta
AltaGas Ltd. will be constructing a gas processing facility and an associated gas gathering system in the Gordondale area of the Montney resource play, approximately 100 km northwest of Grande Prairie, Alberta, Canada. The plant will be equipped with liquids extraction facilities to capture the natural gas liquids.
"The Gordondale gas processing facility is an exceptional gas infrastructure project located in an area of strong natural gas supply growth that will provide long-term, stable cash flows," said David Cornhill, chairman and CEO of AltaGas. "The project is consistent with our strategy to optimize our existing base business and to partner with leading North American natural gas producers."
The Gordondale gas processing facility and gathering system will cost approximately $235 million. The gas processing facility is expected in-service in late 2012. By using existing infrastructure in the area, AltaGas anticipates providing processing for early production by mid-2011. The project is subject to regulatory approval.
AltaGas has secured a long term, gathering and processing agreement with Encana to supply natural gas to the new Gordondale processing facility.
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