Enbridge planning $2.5B new gas plant, pipeline in B.C.

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Enbridge has started the regulatory process for a new natural gas liquids extraction plant (or “straddle plant”) and associated pipeline in Northeast B.C. with a projected capital cost of $2.5 billion.

The company filed an application for the Frontier Project with the B.C. Environmental Assessment Office in August.

It would be B.C.’s second straddle plant; whereas there are eight in Alberta, noted GMP FirstEnergy analyst Ian Gillies.

The plant will be located near Chetwynd, B.C. and is expected to have an initial capacity of 1.0-1.5 bcf/d, he wrote in a research note.

The related 100,000-bbl/d NGL pipeline will begin at the Chetwynd plant and will stretch 130-170 km to Taylor, B.C., where the liquids

would then go to third party fractionation and rail loading facilities for further processing and transportation to market.

“This is another example of infrastructure companies trying to provide solutions for natural gas liquids in the WCSB and improve takeaway capacity for dry gas,” Gillies said.

“We expect the fractionation facility will be owned by a third party. Mosaic theory would suggest that Pembina Pipeline will be the provider as they have discussed building a fractionation facility in this region.

Project design is currently in the conceptual stage, with FEED work expected to begin the third quarter, for an expected in-service date of winter 2024, Gillies said. The project is not yet secured, and Enbridge has not yet discussed it with the analyst community, he added.

JWN Energy