GREY:CNKEF - Post by User
Post by
BobTheKnob2on Oct 12, 2016 1:39am
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Post# 25333632
Big news in the neighbourhood - new sour gas plant coming
Big news in the neighbourhood - new sour gas plant comingI read news today from NuVista who is a neighbour to Chinook in the Gold Creek area. In that news release they indicate that they have signed a deal as part of a new bought deal financing with SemCAMS to build a new 200MMcf/d sour gas processing plant called Wapiti. SemCAMS (a NYSE listed company) has a number of sour gas processing plants in Westrn Canada. They have received all permits from the AER and will begin construction in the second quarter 2017 with completion expected during second quarter 2019.
What this means is that transportation costs will be reduced, meaning higher net-backs. There will also be the possibility of take or pay contracts as well, which means financial stability. There will also be increased pipeline infrastructure and gas gathering systems in the region as well which will decrease costs as well.
Overall I view this as being good for Chinook and other gas producers in the Montney.