Encana starts up processing plant ahead of schedule
CALGARY, Alberta — Encana successfully started up the Tower processing plant ahead of schedule and under budget on Sept. 20. The plant is the first of three Veresen Midstream facilities that support Encana's condensate-focused growth plan in the Montney.
The Tower facility is in the process of ramping up. The two other new plants, Sunrise and Saturn, are also ahead of schedule and under budget with Sunrise expected to start up by mid-October and Saturn before year-end.
These new plants will more than double Encana's Montney liquids production from Q4 2016 to Q4 2017. The company's liquids and gas volumes in the play are expected to grow throughout 2018 as drilling programs bring the plants to full capacity.
"The Tower plant startup, delivered ahead of schedule and under budget, is an important milestone in our strategy and 5-yr plan," said Doug Suttles, Encana President & CEO. "Liquids growth in the Montney is a key driver in expanding our corporate margin and delivering quality returns."
Encana's innovative midstream agreement with Veresen Midstream enables Encana, via the Cutbank Ridge Partnership, to construct and operate the three plants, as well as any future build opportunities, on behalf of Veresen Midstream on a contracted basis. Veresen Midstream funds and owns the facilities and Encana pays to use them through a fee-for-service agreement.
Encana remains on track to deliver its 2017 corporate guidance despite Hurricane Harvey and gas constraints this summer in western Canada. Impacts from Hurricane Harvey in the Eagle Ford and Permian were limited to approximately 3,500 boed in the Q3 through well executed recovery plans and strong coordination between Encana's operations, midstream and marketing teams.
In western Canada, TCPL system maintenance and an extended third-party gas plant turnaround are expected to have a third quarter production impact of about 55 MMcf/d. Throughout these gas curtailments, Encana prioritized liquids-rich gas production to minimize cash flow impacts.
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