Calgary—Celtic Exploration, Ltd., has plans to build a $40-million shallow-cut natural gas plant near its existing Kaybob compression facility northwest of Edmonton.
Located near Fox Creek, Alta., the Kaybob Plant is expected to have the raw gas processing capacity of 150 million cubic feet per day (MMCF/d).
The company announced a project price tag of approximately $40-million, with 40 per cent of the cost incurred in 2012 and the remaining 60 per cent covered in 2013.
Celtic’s gas production from the Devonian Duvernay, Triassic Montney and Cretaceous formations at Kaybob is currently processed at the third-party operated KA Gas Plant.
The new facility will allow to company to process its own raw gas.
According to Celtic, the Kaybob Plant is expected to be operational in the second quarter of 2013.