Wolf Midstream (Wolf) has announced a positive final investment decision for its NGL North Phase Two project. This development will significantly boost the natural gas liquids (NGL) production capacity of Wolf’s existing NGL North System, which was commissioned in 2023.
Project Highlights:
- Increased Capacity: The expanded system will recover NGL from approximately 1.5 billion cubic feet per day (Bcf/d) of natural gas, producing over 90,000 barrels per day (bpd) of NGL, including over 60,000 bpd of ethane.
- Long-term Commitments: The majority of this production is committed under long-term agreements with Alberta’s petrochemical industry.
- Investment: The project involves an incremental investment of approximately $1 billion, supported by the Canada Pension Plan Investment Board (CPP Investments).
Key Components:
- Wolf Recovery Facility 2: This facility will recover higher carbon natural gas liquids before combustion at downstream oil sands production facilities.
- Pipeline and Facilities: The project includes a 125-kilometer pipeline lateral, an expansion of the Wolf Feedstock Separation facility in Sturgeon County, a new unit train rail terminal, and large-scale salt cavern storage.
Future Prospects:
- Expansion Potential: The expansion aims to enhance NGL North’s capacity to process nearly 3 Bcf/d and recover 170,000 bpd of NGL, supporting downstream market development in Western Canada.
- Strategic Growth: Wolf has made significant strides in its growth strategy in Alberta, providing long-term value to the CPP Fund.
Leadership Insights:
- Kevin Jagger, President, Wolf NGL: Emphasized the environmental benefits of the Wolf Recovery Facility 2 in reducing carbon emissions.
- Bob Lock, CEO of Wolf: Highlighted the project’s role in building out NGL North’s ultimate potential and its importance for future downstream market development.
- Bill Rogers, Managing Director, CPP Investments: Praised the management’s vision and the value proposition Wolf offers to its downstream customers.
The NGL North Phase Two expansion is slated to be operational by 2027, marking a significant milestone in the growth and development of Alberta’s petrochemical industry.
