IN THE NEWS / Alberta Energy Corp West Putting Old Reservoir To Good Use
BRETT REINHART
Herald-Tribune staff
Alberta Energy Company (AEC) not only takes natural gas out of the ground in the Peace Country, now they are going to be putting it back.
And it makes perfect sense for them.
The company is going to re-use a depleted reservoir located between Hythe and the B.C border to store natural gas.
"The integrity of the reservoir is good, so you can pump gas back in and better manage your production," explained AEC spokesperson Dick Wilson.
"This way you can produce natural gas even when you're not selling it and store it in the ground."
It's also much cheaper than building a new storage site.
The development will create 10 billion cubic feet of storage capacity and allow for an injection and withdrawal capability of 100 million cubic feet of gas per day, with the potential for expansion in the future. It should be available for use in April, 1999.
When combined with similar Alberta facilities operated by AEC at Primrose Lake (near Cold Lake) and Suffield, company officials see some big advantages for themselves and other producers in the Peace Country who need their gas stored.
"You can be putting inventory in at Hythe and taking it out, for example, at Suffield," described Wilson.
The new site's proximity to the Alliance pipeline will also allow for connection of the inventory to points east.
"We anticipate considerable interest in the additional flexibility this will create for storage customers," said Paul Amirault, AEC Storage and Hub Services marketing manager.
BENEFIT THE AREA
Converting the reservoir to a commercial storage facility will also benefit the area by creating about 100 construction jobs during the first half of 1999.
The work will be contracted out to local companies early in the new year.
The Storage and Hub Services unit of AEC is also developing the Wild Goose storage project in California as part of its mandate for growth. |
