Encana has high hopes for natural gas production

On Friday, Oct. 14, the natural gas giant has announced it hopes to triple its production of natural gas liquids from Alberta processing plants, as the company and its partners increase investments in order to expand capacity in the industry.

Encana has claimed it wants to triple its current output of 10,000 to 30,000 barrels.

The natural gas company’s statement was released only a few hours after Pembina Pipeline Corp. announced it will invest $230 million for the construction of a new pipeline and expand the processing liquids extraction capacity at the Westhaven plant in west-central Alberta.

The pipeline operator and gas processor based out of Calgary said the plant capacity increase and the first of a two-phase expansion process will begin in late 2013.

Renee Zemlbak, Encana’s executive vice-president or marketing, midstream and fundamentals says “this is the third step in our well-developed plans to capture additional value from our liquids-rich natural gas production in Alberta’s Deep Basin.”

According to Encana, the first step in their gas liquids expansion is set to begin in December, when the company expects to add approximately 5,000 barrels per day from expanded pipelines installed by Pembina at its Musreau natural gas processing plant, 30 km northwest of the Resthaven plant.

Also at the Resthaven, Encana has struck a long-term processing deal with Pembina, which also plans on building a 44 km pipeline to ship the liquids to the Peace pipeline for delivery to Edmonton.

Thursday, Oct. 13, Pembina announced that the initial phase of the Resthaven processing plant will have the capacity to handle 200 million cubic feet per day of natural gas, as well as up to 13,000 barrels per day of liquids.

Once the expansion plan is complete, Pembina will own 100 per cent of the pipeline and 65 per cent of the Resthaven facility.   

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