Painted Pony Petroleum Ltd has recently announced that it has signed an agreement with Spectra Energy to provide Painted Pony with long-term natural gas transportation. This will serve the company’s growing British Columbia (B.C.), Canada, production base.The new transportation contract with Spectra Energy Transmission is for 220 million ft3/d of firm capacity on the T-North pipeline. The contract is expected to commence on 1 November 2016 and it carries a term of 25 years on 200 million ft3/d and a term of 18 years, 8 months on 20 million ft3/d. The contract will contribute to Painted Pony's plan to develop and deliver 240 million ft3/d of natural gas and gas liquids volumes by the end of 2016.
The predicted start date of the contracted service has been timed to coincide with the start-up of the planned AltaGas Townsend area gas processing plant, which is scheduled to begin operations by mid-2016. This new facility is expected to boost Painted Pony's sales volumes forecast to a total of 240 million ft3/d by the end of 2016, including a minimum 150 million ft3/d of incremental volumes from the AltaGas Townsend facility.
The contract will allow Painted Pony to deliver up to 220 million ft3/d to one of two points – Station '2' or Sunset Creek. Deliveries at Station '2' provide the ability to supply proposed LNG export facilities and traditional Pacific northwest markets in Canada and the US.
Painted Pony remains confident that a strong demand for LNG exports will develop for B.C. gas producers and this contract provides a mechanism for transportation into LNG export schemes.
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/30062015/painted-pony-signs-natural-gas-transportation-contract-966/