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Veresen’s gas processing complex sanctioned

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Hydrocarbon Engineering,

Veresen Inc. (Veresen) has announced that the Cutbank Ridge Partnership (CRP) has sanctioned the CAN$715 million Tower rich gas processing complex (Tower), which is the second major new gas plant now under construction as part of the Veresen Midstream Limited Partnership (Veresen Midstream) infrastructure development. Veresen now has CAN$1 billion net of growth projects under construction, including Tower and the previously announced Sunrise gas plant, the Burstall ethane storage facility and the Aux Sable fractionation expansion.

The Tower rich gas processing complex will have capacity for 200 million ft3/d of rich gas and up to 20 000 bpd of condensate and NGL. Tower will be located south of Fort St. John in northeastern British Columbia and will process rich gas from the Montney resource play. The Montney remains western Canada's most actively developed gas resource play and continues to deliver strong results, even against a challenging macro environment. The estimated capital cost for the Tower gas processing plant, liquids recovery, storage and other ancillary facilities is CAN$715 million, with the plant expected to be in service in late 2017.

In October 2015, CRP sanctioned the 400 million ft3/d Sunrise gas plant. Sunrise will be the largest gas plant commissioned in western Canada in the last 30 years and the facility is expected to be in service in late 2017. Beyond the newly sanctioned Tower rich gas processing complex, CRP has also proposed to add an incremental 200 million ft3/d of compression and 400 million ft3/d of refrigeration capacity to the Saturn compressor site, converting this site into a 400 million ft3/d gas plant. A final investment decision for this project is expected in early 2016.

"Veresen Midstream is the second largest independent gatherer and processor of Montney gas," said Don Althoff, President and CEO of Veresen. "With the addition of the Sunrise, Tower and Saturn gas plants, Veresen Midstream's processing capacity will triple by the end of 2018, providing strong cash flow and earnings growth for Veresen."

Adapted from press release byFrancesca Brindle

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