Wolf Midstream advances C$1bn NGL North Phase Two project in Alberta

Wolf Midstream has announced a final investment decision (FID) to proceed with the nearly C$1 billion ($730 million) NGL North Phase Two project in Alberta, Canada, marking a significant expansion in the region’s natural gas liquids (NGL) production capabilities. This strategic expansion aims to enhance the capacity of Wolf Midstream’s existing NGL North System, which commenced operations last year and is projected to be fully operational by 2027.

The NGL North System is primarily designed for the recovery, transportation, and separation of NGLs, capable of producing approximately 70,000 barrels per day (bpd) of NGL, including key components such as ethane, propane, butane, and condensate. With the completion of the NGL North Phase Two expansion, the system’s capacity will substantially increase, allowing for the recovery of NGL from about 1.5 billion cubic feet per day (Bcf/d) of natural gas, with total NGL production expected to exceed 90,000 bpd, including more than 60,000 bpd of ethane.

Bob Lock, President and CEO of Wolf Midstream, highlighted the broader implications of the expansion: “Along with pre-investment for future phases, this expansion continues to build out NGL North’s ultimate potential of processing nearly 3Bcf/d and recovering 170,000bpd of NGL, creating a critical source of incremental, reliable feedstock supply for a new wave of downstream market development in Western Canada.”

The majority of the increased production capacity secured through Phase Two is backed by long-term agreements with key players in Alberta’s burgeoning petrochemical industry, ensuring sustained demand and stability for the expanded operations.

The expansion project receives significant financial backing from Canada Pension Plan Investment Board (CPP Investments), reinforcing confidence in the project’s success and strategic relevance. Bill Rogers, CPP Investments Managing Director and Global Head of Sustainable Energies, commented on the investment: “Since our initial investment in 2016, Wolf has made tremendous progress on its growth strategy in Alberta, delivering long-term value to the CPP Fund.”

Additional Project Components

The NGL North Phase Two project includes several critical infrastructure developments:

– Wolf Recovery Facility 2: Designed to recover higher carbon natural gas liquids.

– 125km pipeline lateral: Extends the current pipeline infrastructure significantly.

– Wolf Feedstock Separation facility expansion: Located in Sturgeon County, this expansion is crucial for enhancing the processing capabilities.

– New unit train rail terminal and large-scale salt cavern storage facilities: These developments are aimed at improving logistics and storage capacities.