Wolf Midstream has taken a final investment decision (FID) to move ahead with the nearly C$1bn ($730m) NGL North Phase Two project in Alberta, Canada.
The project is expected to considerably expand the natural gas liquids (NGL) production capacity of Wolf Midstream’s existing NGL North System, which was put into service last year. The NGL North Phase Two expansion is projected to be operational by 2027.
NGL North is designed for NGL recovery, transportation, and separation. It is capable of producing around 70,000 barrels per day (bpd) of NGL, including ethane, propane, butane, and condensate.
After the completion of the NGL North Phase Two project, the expanded system will increase its capacity to recover NGL from approximately 1.5 billion cubic feet per day (Bcf/d) of natural gas. It will produce over 90,000 barrels per day (bpd) of NGL, including more than 60,000bpd of ethane.
Wolf Midstream president and CEO Bob Lock said: “Along with pre-investment for future phases, this expansion continues to build out NGL North’s ultimate potential of processing nearly 3Bcf/d and recovering 170,000bpd of NGL, creating a critical source of incremental, reliable feedstock supply for a new wave of downstream market development in Western Canada.”
The majority of the increased production following phase 2 is secured through long-term agreements with Alberta’s expanding petrochemical industry. Wolf Midstream said that the investment for the expansion project is supported by its shareholder, Canada Pension Plan Investment Board (CPP Investments).
CPP Investments managing director and sustainable energies global head Bill Rogers said: “Since our initial investment in 2016, Wolf has made tremendous progress on its growth strategy in Alberta, delivering long-term value to the CPP Fund.
“The Phase Two expansion of the NGL North System further exemplifies management’s compelling vision for the company as well as the integrated value proposition Wolf offers to downstream customers.”
According to Wolf Midstream NGL president Kevin Jagger, the NGL North Phase Two project encompasses the Wolf Recovery Facility 2, designed to recover higher carbon natural gas liquids before their use in downstream oil sands production facilities.
Furthermore, the project entails the construction of a 125km pipeline lateral and a significant expansion of the Wolf Feedstock Separation facility located in Sturgeon County. Additionally, the expansion project will feature a new unit train rail terminal and the development of large-scale salt cavern storage facilities.
