Tower natural gas project in northeastern British Columbia gets green light

CALGARY – Construction of the $715-million Tower natural gas procession complex in northeastern British Columbia has received the green light from the Cutbank Ridge partnership formed by Encana (TSX:ECA) and Mitsubishi.

Veresen (TSX:VSN) — a Calgary-based company that agreed last year to undertake up to $5 billion of expansion projects for Encana and Cutbank Ridge — says the Tower complex south of Fort St. John, B.C., will be able to process 200 million cubic feet per day of natural gas.

The Tower complex includes a processing plant as well as storage and other facilities that are expected to be in service in late 2017.

The decision to build the Tower complex follows a previously announced plan to build the $860-million Sunrise natural gas plant near Dawson Creek, B.C., for Cutbank Ridge.

Sunrise is expected to process 400 million cubic feet per day of natural gas when it becomes operational in 2017.

Both processing plants would handle natural gas from the Montney Formation in northeastern British Columbia.