Canadian energy firm Encana $ECA is ramping up it’s new Tower processing plant, part of their condensate-focused growth plan, opened ahead of schedule and under budget The plant is the first of three Veresen Midstream facilities in the Montney.
Canadian energy firm Encana $ECA is ramping up it’s new Tower processing plant, part of their condensate-focused growth plan, opened ahead of schedule and under budget The plant is the first of three Veresen Midstream facilities in the Montney. Encana now expects production growth from its core assets to be towards the top end of its 25 to 30 percent guidance range from the fourth quarter of 2016 to the fourth quarter of 2017.
The two other new plants, Sunrise and Saturn, are also ahead of schedule and under budget with Sunrise expected to start up by mid-October and Saturn before year-end.
These new plants will more than double Encana’s Montney liquids production from the fourth quarter of 2016 to the fourth quarter of 2017. The company’s liquids and gas volumes in the play are expected to grow throughout 2018 as drilling programs bring the plants to full capacity.
“The Tower plant startup, delivered ahead of schedule and under budget, is an important milestone in our strategy and five-year plan,” said Doug Suttles, Encana President & CEO. “Liquids growth in the Montney is a key driver in expanding our corporate margin and delivering quality returns.”
On Track Despite Hurricane Harvey
In a statement Encana said it remains on track to deliver its 2017 corporate guidance despite Hurricane Harvey and gas constraints this summer in western Canada. Impacts from Hurricane Harvey in the Eagle Ford and Permian were limited to approximately 3,500 barrels of oil equivalent per day (BOE/d) in the third quarter through well executed recovery plans and strong coordination between Encana’s operations, midstream and marketing teams.ana’s midstream agreement with Veresen Midstream enables Encana, via the Cutbank Ridge Partnership, to construct and operate the three plants, as well as any future build opportunities, on behalf of Veresen Midstream on a contracted basis. Veresen Midstream funds and owns the facilities and Encana pays to use them through a fee-for-service agreement.
In Western Canada, TCPL system maintenance and an extended third party gas plant turnaround are expected to have a third quarter production impact of about 55 million cubic feet per day (MMcf/d). Throughout these gas curtailments, Encana prioritized liquids-rich gas production to minimize cash flow impacts.
“We are committed to being an operator that can be counted on,” said Suttles. “We continue to grow margins, lower costs and drive efficiency. Our focus on creating a business that can deliver quality returns through the commodity cycle is paying off. We are firmly on track with our 2017 guidance and well positioned for 2018 when we expect to deliver significant value growth within cash flow.”
About Encana Corporation
Encana is a leading North American energy producer that is focused on developing its strong portfolio of resource plays, held directly and indirectly through its subsidiaries, producing oil, natural gas liquids (NGLs) and natural gas. By partnering with employees, community organizations and other businesses, Encana contributes to the strength and sustainability of the communities where it operates. Encana common shares trade on the Toronto and New York stock exchanges under the symbol ECA.
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