Taylor NGL To Build Ethane Extraction Plant

Taylor NGL Limited Partnership, headquartered in Calgary, plans to build a C$45 million natural gas liquids extraction plant in Joffre, AB. The Joffre Ethane Extraction Plant (JEEP) would be located near Nova Chemicals' petrochemical complex and would process the fuel gas used there to recover ethane, propane, butane and condensate. Pending the necessary approvals, construction is expected to begin by the fourth quarter.

Taylor NGL holds a majority interest in and also operates the Younger NGL Extraction Plant in Taylor, BC, which is a similar facility. The Younger facility is the fourth largest NGL extraction plant in western Canada and the only straddle plant in British Columbia. Taylor NGL shareholders approved a broadened business definition for the partnership, and JEEP is the first significant project for Taylor NGL under the new growth strategy.

"The (JEEP) project is particularly attractive because of the proximity of the long-term market for production and the association with a major petrochemical company, Nova Chemicals," said Bob Pritchard, Taylor NGL's president.

Dan Boivin, president of Nova Chemicals olefins/polyolefins business, said, "Historically, most of the ethane in Alberta has come from the large extraction plants on the export pipeline sites, such as Empress." Boivin said Nova thinks the JEEP project is an "important first step in the expansion of ethane supply potential."

The Joffre plant would be capable of processing 250 MMcf/d and would have initial production of 10,400 bbl/d of natural gas liquids. The ethane production would be sold to Nova Chemicals, while the propane, butane and condensate would be marketed through a long-term arrangement with an unnamed marketing partner. The company is now beginning its regulatory applications, which include a comprehensive public consultation.

JEEP would process pipeline-specification natural gas, which is the same gas quality used by Alberta industrial and residential customers, according to Taylor NGL. The sweet gas processing facility would have minimal emissions, the company said.

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