Canada-based AltaGas has announced that its board of directors have approved a positive final investment decision for the construction, ownership and operation of the North Pine facility in British Columbia, Canada.
The facility — to be located approximately 40km northwest of Fort St. John — will be connected to the existing AltaGas infrastructure in the region. It will also have access to the CN rail network, allowing the transportation of propane from the North Pine facility to the proposed Ridley Island Propane Export Terminal.
AltaGas will build the new facility with two natural gas liquids (NGL) separation trains each capable of processing up to 10,000 Bbls/d (barrels a day) of propane plus NGL mix (C3+), for a total of 20,000 Bbls/d.
Phase one will also include 6,000 Bbls/d of condensate (C5+) terminalling capacity, with ultimate capacity for up to 20,000 Bbls/d.
Site preparation for the first NGL separation train is expected to start in the first quarter of 2017 and is anticipated to commence operations in the second quarter of 2018. Construction of the first train and associated pipelines is estimated to cost up to $135M. The second 10,000 Bbls/d NGL separation train is expected to follow upon completion of the first train.
Furthermore, the project will involve the construction of two eight-inch diameter NGL supply pipelines, each approximately 40 km in length, from the existing Alaska Highway truck terminal to the North Pine Facility.
At the truck terminal, the two existing 30km NGL egress pipelines (the Townsend NGL Egress Pipelines) currently delivering product from AltaGas' Townsend facility will be connected to the North Pine Pipelines to enable shipment of NGL produced at the Townsend facility directly to the North Pine facility.
The British Columbia Oil and Gas Commission approval for the North Pine Pipelines is expected in the fourth quarter of 2016, with site work anticipated to commence in the first quarter of 2017 and be finished in the second quarter of 2018.