Recent History – 2004-2006
By Brad Lyon — November 02, 2005
EnCana Corporation is seeking approval from the British Columbia Oil and Gas Commission to construct a value-add natural gas processing plant in the south Peace region, approximately 50 kilometres south of Dawson Creek and four kilometres north of Kelly Lake. The proposed plant is projected to cost $60 million and have a capacity of approximately 200 million cubic feet of natural gas per day.
The proposed Steeprock Gas Plant would process raw natural gas produced by EnCana’s wells in the Bissette, Cutbank Ridge and Kelly Lake areas. Sales gas would be shipped from the proposed plant through EnCana’s existing 10-inch pipeline to the TransCanada PipeLine system. Currently gas produced in that area is being processed in Hythe, Alta.
“The processing capacity right now at the Hythe plant is at capacity,” said Florence Murphy, EnCana’s vice-president public and community relations. “For oncoming production out of the B.C. area, additional processing capacity is needed. This would be a plant that would allow production from British Columbia to be processed in British Columbia and put into the connecting pipeline system.”
The application was filed on Monday with the Oil and Gas Commission. Murphy said that EnCana anticipates potentially having final approval by the first quarter of 2006. Construction would last approximately six months, with a possible start-up in the fourth quarter of 2006.
“We’re certainly working closely with the oil and gas commission to ensure that they have all the information they need to make a decision, and that all the consultation has been done,” Murphy said.
The proposed plant is expected to provide 480-person years of direct and indirect employment during construction and over its years of operation. It is expected that there would be approximately 15 permanent jobs at the proposed plant.