Wolf Midstream is a Calgary-based private company backed by the Canada Pension Plan Investment Board (“CPP Investments”). Wolf was formed in 2016 with an investment from CPP Investments to focus on the acquisition and development of midstream infrastructure and opportunities in Western Canada. Wolf is committed to developing innovative, sustainable midstream solutions and transforming the future of carbon reduction through the development of world-scale CO2 infrastructure in both Canada and abroad.
Wolf Infrastructure Inc. (Wolf) and Canada Pension Plan Investment Board (CPPIB) announced today that they have signed an agreement to establish a midstream energy infrastructure vehicle focused on opportunities in Western Canada. As part of the agreement, Wolf will identify and evaluate opportunities for the vehicle to acquire, expand and develop midstream assets supporting natural gas, oil and natural gas liquids (NGLs) production, including processing facilities and gathering systems, pipelines, hydrocarbon storage and terminals. CPPIB will provide funding for such future acquisitions and development of midstream opportunities, which will be operated and managed by the Wolf management team. The vehicle’s goal is to initially invest more than $1 billion in the sector. Wolf’s management team will continue to build on its success in commercial and operational optimization of facilities, asset evaluation and acquisition. The team will also leverage their expertise in origination and execution of greenfield energy infrastructure projects in Western Canada.
The Investments
Gas fractionation plan
Wolf Midstream (“Wolf”) is pleased to announce a positive final investment decision to construct, own and operate a proprietary, integrated natural gas liquids (“NGL”) recovery, transportation and separation system, known as NGL North. By recovering higher carbon NGL from the Alberta natural gas system, NGL North is expected to reduce carbon dioxide (“CO2”) emissions in the Christina Lake area by over 200,000 metric tonnes per year and will provide critical feedstock to support Alberta’s petrochemical industry.
- Recovery (“Wolf Recovery Facility I” or “WRF I”): an NGL recovery facility with an ultimate capacity of approximately one billion cubic feet per day, located in Northeast Alberta that recovers higher carbon NGL prior to downstream combustion;
- Transportation (“Access NGL”): an NGL transportation system that will transport recovered NGL from Wolf Recovery Facility I to the Wolf Feedstock Separation complex utilizing Wolf’s existing idle 16-inch pipeline; and
- Separation (“Wolf Feedstock Separation” or “WFS”): an NGL separation complex located in Sturgeon County, Alberta, and immediately proximate to Wolf’s existing Sturgeon Terminal and Alberta Carbon Trunk Line origin point. Wolf Feedstock Separation will have an ultimate capacity to produce approximately 70,000 barrels per day of NGL, including ethane, propane, butane, and condensate.
Sturgeon Terminal Pipeline Permits Permit #62,834 – Pipeline to gas processing plant – 1KM
AER Permit for Plant
Pipeline to Connect Gas fractionation plan
Wolf Midstream Inc. (Wolf) announced today that it has signed an agreement with MEG Energy Corp. (MEG) to acquire MEG’s 50% ownership interest in Access Pipeline (Access) and 100% ownership interest in the Stonefell Terminal for $1.52 billion plus capital commitments of approximately $90 million. With this acquisition, Wolf will become the 100% owner and operator of Access. Wolf completed the acquisition of its initial 50% interest in Access in October 2016. The transaction includes an initial term commitment of 30 years from MEG with respect to transportation services on Access and the use of the Stonefell Terminal.
In addition to the 30-year agreement, MEG and Wolf have established commercial parameters for the conversion of Access’ additional 16-inch unutilized pipeline to transport natural gas liquids. This agreement is in support of MEG’s proprietary ongoing enhanced bitumen recovery process and has allowed MEG to secure rights to a substantial portion of that pipeline’s capacity. This unutilized pipeline extends from the Sturgeon terminal in Alberta’s Industrial Heartland to the Christina Lake area.
The Access Pipeline system includes pipelines that transport blended bitumen and diluent between the Christina Lake area of Northeastern Alberta and Edmonton. The Stonefell Terminal connects MEG’s production facilities, through the Access system, to additional distribution connections, serving as a launch point for large volumes of blended products to reach multiple markets.
“With this transaction, Wolf will be well-positioned to expand Access Pipeline’s capacity for both bitumen blend and diluent to serve its two core customers and third-parties, as well as extend service through the unutilized 16-inch pipeline, now made possible through 100% ownership,” said Gord Salahor, Wolf’s Chief Executive Officer. “We are pleased to enter into this long-term partnership with MEG as it continues to grow its high-quality Christina Lake Project and with the opportunity to provide new market options for natural gas liquids in support of enhanced bitumen recovery initiatives for MEG and others.”
The transaction will be funded at closing by Wolf through an investment by Canada Pension Plan Investment Board (CPPIB) of up to $800 million and third-party debt financing.
The transaction is subject to regulatory approvals along with customary terms and conditions. Closing is expected in the first quarter of 2018. CIBC Capital Markets acted as lead financial advisor, RBC Capital Markets acted as left lead debt underwriter and also acted as a financial advisor and Norton Rose Fulbright Canada LLP acted as legal advisor to Wolf on this transaction.
Straddle Plant
Breaking News – Wolf Midstream Application to construct and operate a straddle plant with less than 0.01 moles per kilomole hydrogen sulfide (H2S) in the inlet stream as part of the ACTL
NGL Straddle Plant: a gas processing plant located on or near a gas transmission line which removes residual NGLs that remain in the sales gas. The straddle plant operator then replaces the energy equivalent of the liquids removed in the form of natural gas and returns the sales gas to the transmission
Pipeline Permit to Connect straddle plant to Alberta Carbon Trunk Line Pipeline Project
Alberta Carbon Trunk Line Pipeline Project
The Alberta Carbon Trunk Line (ACTL) system is the world’s newest integrated, large-scale carbon capture, utilization and storage (CCUS) system. Designed as the backbone infrastructure needed to support a lower carbon economy in Alberta, the ACTL system captures industrial emissions and delivers the CO₂ to mature oil and gas reservoirs for use in enhanced oil recovery and permanent storage. As the world’s largest capacity pipeline for CO₂ from human activity, the ACTL is capable of transporting up to 14.6 million tonnes of CO₂ per year, representing approximately 20% of all current oil sands emissions or equal to the impact of capturing the CO₂ from more than 3 million cars in Alberta. The future of a lower carbon economy relies on key infrastructure like the ACTL system to provide sustainable solutions to global energy requirements.
ACTL Pipeline
The ACTL is the world’s largest capacity pipeline for CO₂ from human activity, capable of transporting up to 14.6 million tonnes of CO₂ per year. Owned and operated by Wolf Midstream, this 240-kilometre pipeline safely transports CO₂ from the current capture and compression sites to aging oil reservoirs in Central Alberta for enhanced oil recovery and secure permanent storage. The ACTL pipeline is the core of an expandable network built to support significant future emissions solutions and new utilization pathways.
Designed as the backbone infrastructure needed to support a lower carbon economy in Alberta, it has the world’s largest capacity pipeline for CO₂ from human activity, capable of transporting up to 14.6 million tonnes of CO₂ per year. This represents approximately 20% of all current oil sands emissions or equal to the impact of capturing CO₂ from more than 3 million cars in Alberta.
Carbon Storage
Enhance Energy Inc. (“Enhance”) and Wolf Carbon Solutions Inc., an affiliate of Wolf Midstream (“Wolf”), are pleased to announce the two parties have entered into a project development and coordination agreement related to the construction and operation of the Alberta Carbon Trunk Line (“ACTL”). The ACTL is a 240-kilometre pipeline that will collect carbon dioxide (“CO2”) from industrial emitters in and around Alberta’s Industrial Heartland and transport it to aging reservoirs throughout central and southern Alberta for secure storage and enhanced oil recovery (“EOR”) projects.
Subject to closing under this agreement, Wolf will construct, own, and operate the CO2 capture and pipeline transportation assets. Enhance will continue to be the owner and operator of the CO2 utilization and sequestration portion of the ACTL project through its EOR operations. Upon closing of this agreement, anticipated to be within 60 days, the parties will enter into a long-term service agreement and construction activities related to the ACTL project will commence. Initial CO2 flow rates are expected to start at 800 tonnes per day in the fourth quarter of 2019 and increase to 4,400 tonnes per day by the end of 2019.
Sponsor
Compass Geomatics services a number of industries in Alberta and Saskatchewan. We realize each project is different, and each industry is unique. By offering tailored and complete geomatics packages to our clients, we’re able to provide efficient and cost-effective solutions to meet your needs and budget. We utilize the most advanced technologies available to ensure accuracy, and our highly skilled field and office staff are able to manage projects of any scale in a variety of conditions. Our professional team will never sacrifice safety, and customer service is a priority. We always aim to go beyond your expectations, providing due care and attention to exceed industry standards in the most efficient way possible.
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