AltaGas announced October 19 its final investment decision on its North Pine natural gas liquids facility, to be built 40 kilometres northwest of Fort St. John.
The North Pine Facility will be connected to existing AltaGas infrastructure in the region and will have access to the CN rail network, allowing for the transportation of propane from the North Pine Facility to the proposed Ridley Island Propane Export Terminal. The permit from the BC Oil and Gas Commission (BCOGC) to construct, own and operate the North Pine Facility was issued September 23.
AltaGas will be constructing the North Pine Facility with two separate NGL separation trains each capable of processing up to 10,000 Bbls/d of propane plus NGL mix (C3+), for a total of 20,000 Bbls/d. The first phase 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 begin in the first quarter of 2017, with an expected commercial on-stream date in the second quarter of 2018. The second 10,000 Bbls/d NGL separation train is expected to follow after completion of the first train.
Two eight inch diameter NGL supply pipelines (the North Pine Pipelines), each approximately 40 km in length, will also be constructed and will run from the existing Alaska Highway truck terminal (the Truck Terminal) to the North Pine Facility. One supply line will carry C3+ with the other carrying C5+. At the Truck Terminal, the two existing 30 km 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 BCOGC permit for the North Pine Pipelines is expected in the fourth quarter of 2016, and site work would commence in the first quarter of 2017 with a target commercial on-stream date in the second quarter of 2018.
The capital cost of the first train and associated pipelines is estimated to be approximately $125 to $135 million. This investment will be backstopped by long-term supply agreements with Painted Pony for a portion of the total capacity, and will include dedication of all of its NGL produced at the Townsend and Blair Creek facilities.
