AltaGas has agreed to acquire 50% stake in the 210 MMcf/d Aitken Creek natural gas processing plants of Black Swan Energy in Canada.
The Aitken Creek facilities involved in the deal signed by AltaGas with Black Swan include the existing 110 MMcf/d North Aitken Creek Gas Plant and the 100 MMcf/d Aitken Creek Gas Plant, which is currently under construction.
The existing infrastructure of Black Swan is made up of centralized compression, refrigeration, dehydration and sour gas removal at the North Aitken Gas Plant and also sales gas lines with connections to the Alliance and Enbridge pipeline systems.
Black Swan president & CEO David Maddison said: “Black Swan sees this transaction as being supportive of our sustainable low cost structure as the company continues to deliver strong results from our Montney development program.
“Since 2012 the company has established production from approximately 60 horizontal liquids-rich Upper Montney wells with an average estimated ultimate recovery of 9.1 Bcf per well.”
As per the terms of the deal, AltaGas will have the option to take part in two additional plant phases including the potential for enhanced liquids recoveries, which are expected to more than double the natural gas liquids (NGL) output of the Aitken Creek Processing Facilities.
After the acquisition is completed, AltaGas and Black Swan will execute long term processing, transportation and marketing agreements. Also included in the agreements will be the new liquids handling infrastructure of AltaGas, which will see an investment of C$40m ($30.63m) in 2019.
The new liquids handling of AltaGas includes liquids pipelines laid between North Aitken Creek and Townsend and liquids handling at Townsend.
AltaGas said that the subsequently formed 50/50 infrastructure joint venture with Black Swan, combined with its existing and newly owned and operated liquids handling infrastructure, will further consolidate its value proposition and energy export strategy.
AltaGas chairman and interim co-CEO David Cornhill said: “This joint venture with Black Swan further strengthens our position and capture area in one of the most prolific natural gas basins in North America and showcases our competitive position in gas processing and export.”