A partnership involving Veresen Inc. and Encana Corp. that has already committed $1.5 billion to two new gas processing plants in the Dawson Creek area has announced plans to spend nearly $1 billion more on a third gas processing plant.
Veresen is already building two new gas plants in the Dawson Creek area – the Sunrise and Tower plants – with a combined capital cost of $1.5 billion.
Last year, Veresen acquired natural gas gathering and compression assets from Encana and the Cutbank Ridge Partnership.
As part of that deal, Veresen committed to $5 billion worth of investments to build out additional assets for Encana and the Cutbank Ridge Partnership. Under the agreement, Veresen is funding 55% to 60% of the three new gas plants.
The investments underscore the attraction of the Montney formation in Northeastern B.C. [full article here]