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    Wolf Midstream sanctions NGL North expansion

Summary

Expansion will enhance liquids supply to Alberta's growing petrochemical industry. [Image: Wolf Midstream]

by: Dale Lunan

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Wolf Midstream sanctions NGL North expansion

Alberta midstream company Wolf Midstream said July 2 it had reached a positive final investment decision (FID) on a C$1bn (US$730mn) expansion of its NGL North System.

The NGL North Phase Two project will increase capacity of the NGL North System to 1.5bn ft3/day and bring natural gas liquids (NGL) production capacity to 90,000 barrels/day, including 60,000 barrels/day of ethane. The initial phase of NGL North was commissioned in 2023 to process 1bn ft3/day of natural gas and produce 70,000 barrels/day of NGLs.

The vast majority of NGL North’s liquids output is committed under long-term agreements with Alberta’s growing petrochemical industry.

“NGL North Phase Two includes Wolf Recovery Facility 2 which will recover higher carbon natural gas liquids prior to combustion at downstream oil sands production facilities,” Wolf NGL president Kevin Jagger said. “Additionally, the project includes a 125-km pipeline lateral, a material expansion of the Wolf Feedstock Separation facility in Sturgeon County, a new unit train rail terminal and large-scale salt cavern storage.”

Wolf Midstream CEO Bob Lock said NGL North Phase Two is the first step in achieving NGL North’s ultimate potential to process nearly 3bn ft3/day of natural gas and recover 170,000 barrels/day of NGLs, “creating a critical source of incremental, reliable feedstock supply for a new wave of downstream market development in Western Canada.”

The NGL North Phase Two expansion is expected to be in-service in 2027.