AltaGas approval for Montney NGLs plant
Regulatory approval is received to process natural gas liquids from unconventional shale plays in western Canada
Calgary-based AltaGas has received regulatory approval to build a C$235 million facility to process natural gas liquids (NGLs) from unconventional shale plays in western Canada. The plant, which will process 120 million cubic feet a day from the Montney area of Alberta and British Columbia, will also strip liquids such as ethane – used as a feedstock for the petrochemicals sector. The prolific Montney gasfield is one of Canada's fastest-growing production areas. But North American gas prices have prompted producers to find higher-value markets for the NGLs, which receive higher oil-based prices. The additional infrastructure will also allow for accelerated development of the Montney play, which is already considered one of the lowest-cost resource plays in North America. AltaGas is one of Alberta's largest mid-stream and gas-processing companies. The project is 100 km northwest of Grande Prairie and is scheduled for completion in 2012.