Enbridge Finishes Phase I at Horn River Cabin Gas Plant, then Calls Time Out

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Researched by Industrial Info Resources (Sugar Land, Texas)--Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) has completed construction of Phase I of the Horn River Cabin Gas Plant near Fort Nelson, British Columbia. The company recently completed all construction activities, only to leave the plant non-operational without commissioning being performed. The decision to leave the plant idle also affected the construction on Phase II of the gas-processing plant, leaving it only 23% complete.

All generators except for two were set, but the 26-megawatt (MW) cogen unit also was not commissioned. The two unset generators were assigned to power the second processing plant. The price tag for the Phase I and Phase II facilities is estimated at just more than $1 billion.

The Ledcor Group of Companies (Vancouver, British Columbia) served as the general contractor for both Phase I and Phase II of the gas-processing plant, while DPH Focus Corporation (Calgary) served as the engineering and construction contractor for the cogen unit. Solaris Management Consultants Incorporated (Surrey, British Columbia) oversaw the engineering for both phases of the gas-processing plant, as well as the power unit. While Ledcor will pack up and demobilize on Monday, December 10, 2012, it is still unknown when commissioning will occur and construction will resume.

Enbridge purchased from EnCana Corporation (NYSE:ECA) (Calgary) the majority ownership of the Cabin Gas Plant Development in late 2011 for $250 million. Initially, Enbridge had hoped to be producing 400 million cubic feet per day of natural gas by the second half of 2012 and another 400 million cubic feet per day in 2014. Multiple phases have been planned to expand the Horn River site with a total production capacity of 2.5 billion cubic feet per day of natural gas, but those hopes are slowly turning into vapors.

Also in late 2011, EnCana agreed to sell its ownership of the Steeprock (British Columbia) and Hythe (Alberta) processing facilities, as well as approximately 230 miles of gathering pipelines to Veresen Incorporated (TSX:VSN) (Calgary). This venture raked in a little more than $900 million for the Canadian corporation.

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