The Lheidli T’enneh Nation and McLeod Lake Indian Band have partnered up with Formula Capital Corporation on a plan to develop a natural gas liquids extraction plant near Summit Lake north of Prince George..
The processing complex – estimated to cost nearly $1 billion -- is being proposed for the Shas Ti-Dlezeh Industrial Park 40 kilometers north of Prince George. The natural gas would be supplied by the Enbridge Inc. (TSX:ENB) T-south line.
The project is still very early stage. The Shas Ti-Dlezeh Industrial Park is still being formed and will require a designation from Crown land to industrial land, and the project will still need to negotiate an offtake agreement to secure a natural gas supply through Enbridge.
The plant would take natural gas from the Montney region, which is rich in liquids, and separate those liquids into products like butane, propane, ethylene and condensate. Capital would be raised by Formula, and the two First Nations partners under a limited partnership.
Paul Tiefensee, CEO of Formula Capital, said the next step is to produce a pre-feasibility study.
“Once we know it’s feasible, then we’ll enter into permitting,” Tiefensee said.