The $44m project, funded jointly by SaskEnergy’s Bayhurst Energy Services (BESCO) and ATCO Midstream, triples the capacity of the Kisbey Gas Plant to five million cubic feet of gas per day. It also extends the current gathering system at the plant, which was purchased by the two companies under a joint venture agreement in 2007.
Ken Cheveldayoff, minister responsible for SaskEnergy, said: “SaskEnergy’s 50 years of natural gas experience contributed to this project, which will benefit our province, our economy and the environment. It is an excellent example of how the Saskatchewan Government is working to grow investment through Crown and private sector partnerships.”
The companies added that increased oil production in the area created additional gas volumes that were being flared to the atmosphere. The expansion captures excess gas volumes, reducing greenhouse gas emissions while providing an added revenue stream back to oil producers.
At its new capacity, the Kisbey Gas Plant is capable of removing as much as 131,000 tonnes of greenhouse gases from the atmosphere each year, which is equivalent to the emissions produced by more than 20,000 homes.
Kevin Cumming, president of ATCO Midstream, said: “The expansion of the Kisbey plant and gathering system provides a higher level of service to our customers, while at the same time conserving and upgrading a non-renewable energy source.
“It speaks to our ongoing commitment to the environment and provides ATCO Midstream with the opportunity to grow our business in the Kisbey area where we continue to operate in a safe and environmentally responsible manner.”