AltaGas and Painted Pony Petroleum Ltd. have announced that they have signed a definitive agreements to enter into a 15 year strategic alliance for the development of processing infrastructure and marketing services for natural gas and natural gas liquids (NGL).
The Strategic Alliance will provide for the development of essential liquids-rich gas processing infrastructure in northeast British Columbia and will provide preferred access to international energy markets for Painted Pony’s Montney production. In the first phase, AltaGas will construct and operate a 198 million ft3/d shallow cut gas processing facility in the Montney resource play, of which Painted Pony will maintain the right to a minimum 150 million ft3/d.
David Cornhill, Chairman and CEO of AltaGas said: “We are pleased to announce a multi-faceted Strategic Alliance with Painted Pony to support the exciting growth in the Montney region. We view this Strategic Alliance as both a testament to AltaGas’ strategic assets and capability, as well as Painted Pony’s confidence in our ability to connect producers to new markets, including Asia”.
Patrick Ward, President and CEO of Painted Pony, also commented: “We are very pleased to enter this Strategic Alliance with AltaGas. We have established a strong working relationship with their team and our companies are fully aligned with respect to the potential for Montney gas development and the timing required for achieving our mutual goals. The Strategic Alliance also brings viable solutions for providing long-term marketing optionality for Painted Pony’s rapidly growing natural gas and natural gas liquids production”.
In addition to the construction of key gas processing infrastructure, AltaGas will become the primary marketer for Painted Pony’s natural gas and natural gas liquids production from its northeast British Columbia land base and AltaGas will seek premium marketing transactions for Painted Pony’s products through its extensive North American and global network. Painted Pony will become a significant supplier to AltaGas, which will provide preferred access to export opportunities for LNG and NGL from existing and planned facilities.
Adapted from a press release by Emma McAleavey.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/20082014/altagas-painted-pony-alliance-1166/