Arc Resources close to starting new gas plant near Dawson Creek

Calgary based Arc Resources Limited anticipates its new natural gas plant in Sunrise will be running at capacity next month.

Construction of the facility in the Montney play south of Fort St. John, and northwest of Dawson Creek was completed ahead of schedule and under budget.

Mechanical and electrical work was completed last month and was followed by TransCanada Pipelines installation of the sales meter station early this month.

Sunrise produces dry natural gas from the Montney play and the new plant has a designed operating capacity of 60 million cubic feet per day.

ARC Resources has operations in five core areas across Western Canada, including those west and south of Fort St. John.

It added 89 net sections to its Montney holdings in the second quarter of this year, and with Sunrise among the key areas, has now expanded its land to almost one thousand net sections.

Arc reported drilling 37 gross operated wells in the first half of this year, but its activity levels were significantly lower than those in 2014, as the company responded to the decline in commodity prices, by deferring a number of capital projects to future periods.

With the focus on the Montney lands, second quarter capital expenditures this year, before land and net property acquisitions and dispositions, totaled $98.4 million.

However, even with gas selling below three dollars per thousand cubic feet, Arc was still able to post strong second quarter financial results, with funds from operations listed at 206 point three million dollars, up eight per cent from the first quarter of this year.