Altagas announces final investment decision for Canada’s North Pine Facility

Altagas has announced a final investment decision for the construction, ownership and operation of the North Pine Facility in Canada.

The facility will be located about 40km north-west of Fort St John in British Columbia and connected to the company’s existing infrastructure in the region.

It will have access to the CN rail network, allowing for the transportation of propane from the facility to the proposed Ridley Island Propane Export Terminal.

Last month, the company received approval from the BC Oil and Gas Commission (BCOGC) to construct, own and operate the North Pine Facility.

The facility is planned to be constructed with two separate NGL separation trains, each of which will be capable of processing up to 10,000 barrels per day (bbls/d) of propane and NGL mix (C3+), for a total of 20,000bbls/d.

The initial phase will also include 6,000bbls/d of condensate (C5+) terminalling capacity, with ultimate capacity for up to 20,000bbls/d.

Site preparation for the first train is expected to begin in the first quarter of next year, with an expected commercial on-stream date in the second quarter of 2018.

The second train with 10,000bbls/d capacity is expected to follow after completion of the first one.

Two 8in diameter NGL supply pipelines, each about 40km in length, will also be constructed and will run from the existing Alaska Highway truck terminal to the North Pine Facility.

One line will carry C3+, while the other would carry C5+.

The BCOGC permit for these pipelines is expected in the fourth quarter of this year, following which site work would commence in the first quarter of next year.

Commercial on-stream date is expected in the second quarter of 2018.

The first train and associated pipelines are estimated to cost approximately $125 million to $135 million.