Altagas to begin work on C$235 million gas facility
Bangalore (Reuters) - Energy infrastructure company AltaGas Ltd said it received regulatory approvals to begin construction at its C$235 million gas processing project in the oil and gas-rich Canadian province of Alberta.
Located in the Montney resource area -- one of western Canada's largest, low-cost liquids rich resource plays -- the plant is expected to start running by late 2012, the company said in a statement.
The Montney area falls under the Western Canadian Sedimentary Basin, which covers Alberta and parts of Manitoba, Saskatchewan and British Columbia and is one of the world's largest reserves of petroleum and natural gas.
Altagas, which focuses on power utilities and natural gas, said the Gordondale plant would be equipped with liquids extraction facilities, which would allow it to market liquids and let its customers buy gas from the plant.
Natural gas liquids, which can be stripped off components such as ethane, sell at a premium to dry gas.
The gas processing facility will have a capacity of 120 millions of cubic feet per day.
"This two-phased project will allow for early production to our Pouce Coupe facility in the coming months prior to Gordondale coming online late next year," Chief Executive David Cornhill said.
Calgary, Alberta-based AltaGas' shares closed at C$25.66 on Tuesday on the Toronto Stock Exchange.
(Reporting by Gowri Jayakumar in Bangalore; Editing by Saumyadeb Chakrabarty)
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