Wolf Midstream has announced a C$1bn ($730m) final investment decision (FID) to proceed with the NGL North Phase Two expansion project.
The project aims to enhance the NGL production capacity of the existing NGL North System in Alberta, which began operations in 2023.
Wolf is the owner and operator of the NGL North System, a proprietary, integrated system for the recovery, transportation and separation of NGL.
Located in Alberta, the infrastructure system produces ethane, propane, butane and condensate.
The expansion will enable the recovery of NGL from roughly 1.5bcf/d of natural gas, boosting production to more than 90,000bpd, including more than 60,000bpd of ethane.
The increased production capacity is largely supported by long-term agreements with the petrochemical sector in Alberta.
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By GlobalDataThe NGL North Phase Two project includes the construction of Wolf Recovery Facility 2, designed to extract higher-carbon NGL before combustion at oil sands production sites downstream.
Additionally, the expansion encompasses a 125km pipeline lateral, enhancements to the Wolf Feedstock Separation facility in Sturgeon County, a new unit train rail terminal and salt cavern storage capabilities.
The NGL North Phase Two expansion represents an incremental C$1bn investment in Alberta’s infrastructure, backed by Wolf’s shareholder, the Canada Pension Plan Investment Board (CPP Investments).
The expansion project is due to become operational in 2027.
Wolf president and CEO Bob Lock said: “This is a very exciting opportunity; along with pre-investment for future phases, this expansion continues to build out NGL North’s ultimate potential of processing nearly 3bcf/d and recovering 170,000bpd of NGL, creating a critical source of incremental, reliable feedstock supply for a new wave of downstream market development in Western Canada.”
CPP Investments managing director, global head of sustainable energies Bill Rogers said: “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.
“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.”