Under the agreement, AltaGas will commit approximately $28m to construct the gas plant and related infrastructure in return for 100% ownership of the plant and a take-or-pay processing obligation. The facilities will process production from a Montney gas development, and are expected to be commissioned in the fourth quarter of 2010.
David Cornhill, chairman and CEO of AltaGas, said: “The addition of the Groundbirch gas plant will provide AltaGas with additional presence in one of the largest, low cost resource plays in the Western Canada Sedimentary Basin.
“We are extremely pleased to be working with Monterey, and are excited about the opportunity to build on this relationship and support Monterey’s exciting growth.”
