CRP is a partnership between Encana and Cutbank Dawson Gas Resources.
In late 2014, Veresen Midstream, which is equally owned by Veresen and affiliates of Kohlberg Kravis Roberts (KKR), signed a fee-for-service arrangement with Encana and CRP to undertake up to $5bn of new midstream expansion for the companies in Montney.
Till date, Veresen Midstream invested about $130m in the facility and is planning to use its existing $1.2bn credit facility to fund about 60% of the project construction costs.
Veresen and KKR will provide the remaining funding. Encana, on behalf of Veresen Midstream, will be responsible for the project management as well as construction the facility construction.
Construction on the plant is already underway, and the 400 million cubic feet per day (mmcf/d) gas plant is scheduled to be operational in late 2017.
Veresen Midstream president and CEO David Fitzpatrick said: "Upon start-up of the Sunrise plant, Veresen Midstream’s footprint in the Montney will grow substantially, and we look forward to continuing to work with Encana and CRP, as well as other producers in the region, to unlock the value of this important resource play."
Separately, CRP is planning to make final investment decision for the 200 mmcf/d tower gas plant in late 2015.
The company also proposes to add an incremental 200 mmcf/d of compression and 400 mmcf/d of refrigeration capacity to the Saturn compressor site.
Image: Veresen Midstream agrees to undertake up to $5bn of new midstream expansion projects with Encana and CRP in Montney. Photo: courtesy of supakitmod/ FreeDigitalPhotos.net.
