Wednesday, September 24, 2014

ATCO Energy and Petrogas developing Canadian salt caverns for hydrocarbon storage

Brine-filled caverns formed by solution mining of salt are suitable for gas storage

ATCO Energy Solutions, in partnership with Petrogas Energy, is to develop four salt caverns, with the capacity to store approximately 400,000m3 of propane, butane and ethylene to provide the natural gas liquids (NGL) market in western Canada with a new alternative for hydrocarbon storage.

The facility will be located at ATCO's Heartland Energy Centre near Fort Saskatchewan.

The storage facility will be connected to Petrogas' existing Fort Saskatchewan hydrocarbon truck and rail terminal that currently receives and distributes multiple products in the marketplace.

'This development will provide a unique market option and establish enhanced storage services to Alberta's Industrial Heartland,' says Stan Owerko, president and CEO, Petrogas Energy.

'The Petrogas terminal is undergoing expansion to accommodate this storage initiative and provide additional throughput and distribution capacity.

This project will support the movement of increasing volumes of Western Canadian LPG production to traditional North American markets as well as key International export markets through Petrogas' West Coast LPG export terminal in Washington.' Cavern drilling and long lead procurement is currently underway for the facility that will be built and operated by ATCO Energy Solutions.

Commercial operation for two caverns is targeted for the second quarter of 2016 and is strategically timed to offer additional product storage and handling services to meet market demands.

Two additional caverns are anticipated to be completed by the second quarter of 2017.

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