Canada's Oil & Gas Producers at Work on $1.7 Billion in Fourth-Quarter Project Kickoffs

Researched by Industrial Info Resources (Sugar Land, Texas)--Canada's Oil & Gas Production Industry has seen its fair share of challenges in recent years, with prices generally low and tough competition from the U.S. Marcellus and Utica shale plays. Nonetheless, the country expects to see a swath of processing plant expansions before the end of the year. Industrial Info is tracking more than $1.7 billion worth of Canadian Oil & Gas Production projects that are set to begin construction in the fourth quarter.

Click on the image at right for a graph detailing Canadian Oil & Gas Production projects scheduled to kick off from October through December, by project type.

One of the largest expansions comes from Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta), which is preparing to begin work at its $250 million Tupper West natural gas-processing and NGL production plant in Dawson Creek, British Columbia. Enbridge plans to hike its production of natural gas liquid (NGL) from 180 million to 380 million standard cubic feet per day with the addition of a 7,500-barrel-per-day (BBL/d) train.

Al Monaco, the chief executive officer of Enbridge, recently said that the company is focused on "low-cost organic expansions that boost returns by enhancing revenue and minimizing our investment." The Tupper West expansion will be accompanied by a $25 million power transmission line and substation addition, which will allow the facility to receive additional energy from a BC Hydro & Power Authority (Vancouver, British Columbia) facility. For more information, see Industrial Info's reports on the Tupper West plant and power line.

Virtually all of the fourth-quarter Oil & Gas Production kickoffs are to be found in British Columbia and Alberta, the former accounting for more than $1 billion worth. AltaGas Limited (TSX:ALA) (Calgary) is preparing to begin work on an estimated $95 million natural gas-processing plant expansion at its Townsend Facility near Fort Saint John, which will add a train to process an additional 100 million standard cubic feet per day of gas from the Montney shale. AltaGas also is preparing an estimated $90 million deep cut retrofit at Townsend to extract more propane and ethane. For more information, see Industrial Info's reports on the plant expansion and retrofit.

AltaGas also is among the Canadian companies pursing pipeline and terminal project kickoffs in the fourth quarter, as an upcoming election likely will determine the fates of many high-profile projects. For more information, see September 27, 2019, article - Amid Rocky Election, Canada to See $2.5 Billion in Pipeline, Terminal Kickoffs Before Year's End.

Canadian companies that are preparing for kickoffs in Alberta include at least two heavy-hitters: Pembina Pipeline Corporation (NYSE:PBA) (Calgary), which is preparing for an estimated $120 million expansion of an NGL fractionation and terminaling facility near Empress, and Keyera Corporation (Calgary), which is at work on an estimated $150 million expansion of its Wapiti Sour Gas Processing Gas Complex near Grande Prairie.

Pembina expects to bolster its propane liquids production with the addition of a 30,000-BBL/d fractionation terminal, bringing the facility's capacity to 56,000 BBL/d, while Keyera's second-phase expansion will double the Wapiti plant's natural gas-processing capacity to 300 million standard cubic feet per day. For more information, see Industrial Info's reports on the Pembina and Wapiti projects.

Anyone who has visited the northern areas of British Columbia and Alberta during the winter months is familiar with the freezing, often brutal weather. But Athabasca Oil Corporation (TSX:ATH) (Calgary, Alberta) has at least one project proposed for the end of the year: an estimated $20 million well pad addition at the Leismer processing plant near Fort McMurray, Alberta. The well pad, which includes six dual-horizontal well pairs, is expected to boost bitumen production at the steam-assisted gravity drainage facility. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.