CALGARY,
AB, July 2, 2024 /CNW/ - Wolf Midstream (Wolf)
is pleased to announce a positive final investment decision to
proceed with its NGL North Phase Two project,
which will significantly increase the natural gas liquids (NGL)
production capacity of Wolf's existing NGL North System (NGL
North), which was successfully commissioned in 2023.
Once completed, the expanded system will have the ability to
recover NGL from approximately 1.5 billion cubic
feet per day (Bcf/d) of natural gas and produce over 90,000 barrels
per day (bpd) of NGL, including over 60,000 bpd of ethane. The vast
majority of this production is committed under long-term agreements
with Alberta's growing
petrochemical industry. NGL North Phase Two is an incremental
investment in Alberta of
approximately $1 billion, supported by Wolf's
shareholder, Canada Pension Plan Investment Board (CPP
Investments).
"NGL North Phase Two includes Wolf Recovery
Facility 2 which will recover higher carbon
natural gas liquids prior to combustion at downstream oil sands
production facilities," said Kevin
Jagger, President, Wolf NGL.
"Additionally, the project includes a 125-kilometre pipeline
lateral, a material expansion of the Wolf Feedstock Separation
facility in Sturgeon County, a new unit train rail terminal and
large-scale salt cavern storage."
"This is a very exciting opportunity," said Bob Lock, President and Chief Executive Officer
of Wolf, "along with pre-investment for future phases, this
expansion continues to build out NGL North's ultimate potential of
processing nearly 3 Bcf/d and recovering 170,000 bpd of NGL,
creating a critical source of incremental, reliable feedstock
supply for a new wave of downstream market development in
Western Canada."
"Since our initial investment in 2016, Wolf has made tremendous
progress on its growth strategy in Alberta, delivering long-term value to the CPP
Fund," said Bill Rogers, Managing
Director, Global Head of Sustainable Energies, CPP Investments.
"The Phase Two expansion of the NGL North System further
exemplifies management's compelling vision for the company as well
as the integrated value proposition Wolf offers to downstream
customers."
The NGL North Phase Two expansion is expected to be in-service
in 2027.
About Wolf Midstream
Based in Alberta, Wolf is a
private company, backed by Canada Pension Plan Investment Board
(CPP Investments). Wolf was formed in 2016 to focus on the
acquisition and development of innovative midstream energy
infrastructure solutions in Western
Canada. Wolf owns and operates the NGL North
System – a proprietary, integrated natural gas
liquids (NGL) recovery, transportation and separation
infrastructure system located in Alberta that produces ethane, propane, butane
and condensate.
SOURCE Wolf Infrastructure Management Inc.