Peter Murchland, Director of Communications for Spectra, says the proposal comes after demand from local natural gas companies.
"I think there's a sense from producers that they'd like to unlock additional value from natural gas, and natural gas liquids will certainly allow them to do that."
Those NGLs include ethane, propane, butane and condensate that can be extracted and marketed separately from natural gas, helping offset the cost of natural gas production. The Montney natural gas reserves are rich with those NGLs, which can be used in a variety of industries, as well as heating fuel.
The proposed NGL extraction facility would be capable of processing up to 400 million cubic feet of natural gas per day. It would interconnect with the nearby NOVA Gas Transmission Ltd. Tremblay Meter Station, as well as connect with the Pembina Pipeline Corporation Peace Pipeline. Spectra believes that by using existing facilities, pipelines and pipeline rights-of-way, the overall footprint of the project will be minimized.
The project is still in the early stages, which includes speaking to local and Aboriginal communities to make sure they're aware of its development, as well as conducting field work to determine its feasibility. The field work includes soil, water and air testing, as well as gathering archeological and topographical information. Murchland says public consultation will get started once the official applications are made..
"It's still in early phases, and certainly when we get into filing official applications with the province, etc. that will involve even more consultation in a more formal way."
Spectra expects be able to file a Project Description with the province, as well as applications to the Oil and Gas Commission, in September.