Tidewater Additional Processing Agreements at Pipestone Montney Sour Deep-Cut Processing Facility
Tidewater is pleased to announce that it has entered into an agreement with Kelt Exploration Ltd. (“Kelt”) for a volume commitment at Tidewater’s proposed sour, deep-cut Montney gas plant in the Pipestone area near Grande Prairie (the “Pipestone Plant”). Kelt commits to 25.0 MMcf/d of firm raw gas processing under a five-year take-or-pay arrangement at the Pipestone Plant. Kelt has the option to convert a part of its take-or-pay arrangement into an ownership interest of up to 15% in the Pipestone Plant. The Pipestone Plant remains subject to regulatory approval.
Tidewater has signed an additional agreement with a new customer for a reserve dedication at the Pipestone Plant. Tidewater currently has committed the majority of the volumes out of a plant capacity of 100MMcf/d under take-or-arrangements or reserve dedication agreements. Tidewater continues to work with multiple producers to fully contract this facility. The Pipestone Plant remains on schedule and on budget.