The Calgary-based Kanata Energy Group was formed in early last year, and it has confirmed in a news release, it has a deal to build and operate natural gas facilities.
Under terms of the agreement, Unconventional Gas Resources of Calgary will build a new gas plant, as well as buy and operate its existing UGR facilities in this area.
No financial details have been revealed, but Kanata President Kevin Cumming has reportedly said the agreement is expected to result in more deals with B.C. and Alberta Montney play producers in coming months.
“There’s lots of competition but, again, in the next six years or so, there is probably going to be in the range of about $100 billion needed to serve midstream needs,” The Herald quotes Cumming as saying.
In a recent report to investors, RBC Dominion Securities analysts predicted Montney volumes would nearly double to 6 billion cubic feet per day by 2020 as technology is tweaked to optimize recovery and reduce costs.
Kanata said construction of the new UGR gas plant began during the summer, and it’s expected to come on stream near the end of the year.
Click here to read the entire article by The Calgary Herald.
With files from The Calgary Herald