Construction of the largest natural gas plant in Western Canada has commenced. Encana is overseeing the project management and construction of the $860 million facility near Dawson Creek in B.C. on behalf of Veresen Midstream.
“This is the largest gas plant to be commissioned in Western Canada in the last 30 years and we are excited to partner with CRP on this facility,” said David Fitzpatrick, President and CEO of Veresen Midstream. “Upon start-up of the Sunrise plant, Veresen Midstream’s footprint in the Montney will grow substantially, and we look forward to continuing to work with Encana and CRP, as well as other producers in the region, to unlock the value of this important resource play.”
Veresen Midstream anticipates that CRP will proceed to a final investment decision for the 200 mmcf/d Tower gas plant in late 2015. CRP has also proposed to add an incremental 200 mmcf/d of compression and 400 mmcf/d of refrigeration capacity to the Saturn compressor site, effectively converting this site into a 400 mmcf/d gas plant.
A final investment decision for this project could also be made in late 2015 or early 2016. These projects, along with assets acquired on March 31, 2015, will be part of Veresen Midstream’s commitment to provide up to $5 billion of new gas gathering and processing infrastructure to Encana and CRP in the Montney area.