REGINA - A subsidiary of SaskEnergy said Tuesday it has entered into an agreement with Calgary-based Mistral Midstream Inc. to build a $72.5 million natural gas plant in southwest Saskatchewan.
Bayhurst Energy Services Corp. (BESCO) said the state-of-the-art facility will be used to extract ethane and other hydrocarbons from natural gas being transported from Saskatchewan's Bakken formation.
The "straddle plant" will be located near SaskEnergy's pipeline system in Viewfield, Sask., where it will be used to remove the natural gas liquids so it could be transported for home and business use.
The natural gas will then be compressed and put back into the transmission pipeline.
BESCO will hold a 10 per cent share in the facility.
The plant is expected to be operational in early 2015, with construction slated to begin next year.
"This project with SaskEnergy provides the opportunity for Mistral Midstream, already a major investor in energy infrastructure in Saskatchewan, to play a unique role in our economy with a facility that develops ethane and other natural gas liquids that are in high demand by the market in Western Canada," Doug Kelln, president and CEO of SaskEnergy said in a statement.
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