In February 2012, Veresen acquired the the Hythe/Steeprock gas gathering and processing complex from Encana. The Hythe/Steeprock complex includes two natural gas processing plants with combined functional capacity of 516 MMcf/d, as well as approximately 40,000 hp of compression and 370 km of gas gathering lines. The Hythe plant processes both sour and sweet natural gas, while the Steeprock plant is a sour gas processing facility.
These assets are located in the Cutbank Ridge region of Alberta and British Columbia. Natural gas and natural gas liquids in the region are produced from the prolific Montney, Cadomin and other geological formations.
In connection with the acquisition, Veresen and Encana entered into a long-term Midstream Services Agreement under which Encana provides a competitive, long-term, take-or-pay throughput commitment averaging 370 MMcf/d, representing 72% of the functional capacity of the Hythe/Steeprock complex.
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- Capacity for 176 MMcf/d sour gas processing and 340 MMcf/d of sweet processing;
- Constructed 1980 to 2008;
- Facility is connected to Alliance and TransCanada;
- 5 trains: 2 sour and 3 sweet gas;
- Encana’s average capacity commitment is 60% of sweet and 95% of sour capacity over the term of the processing agreement;
- Sulfur plant has excess capacity of approximately 90 tonnes/d; all sulfur is trucked off-site.
- Capacity of 198 MMcf/d;
- Constructed 2006 to 2008;
- Connected to the Hythe gas plant and utilizes sweet sales compressor which is connected to Alliance and TransCanada;
- 2 trains: train 1 includes sour processing with dehydration and a sulfur recovery unit; train 2 has amine and dehydration capabilities and acid gas enrichment;
- All sulfur trucked off-site.
Gathering and Compression System
- 370 km of gas gathering lines and 40,000 hp of compression;
- Encana is the contract operator to allow coordination of its drilling program and natural gas production with the requisite development of the Hythe/Steeprock gathering system