CALGARY—Baytex Energy Corp. has signed a deal to sell excess natural gas from its heavy oil production site in northwestern Alberta to Genalta Power Inc. for nearby a power generating facility.
According to Baytex, the 10-year agreement will see it sell natural gas from its Three Creeks site near Peace River, Alta., to Genalta for a power generating facility being built nearby.
The Genalta project will generate 12 megawatts of power, or the equivalent to the daily energy requirements of more than 14,000 Alberta homes, by using the company’s fuel conversion module (FCM) system.
The system burns waste gases to generate electricity, which is then used on-site or sold back to the grid.
“Baytex is dedicated to operating in an environmentally responsible manner and this initiative provides a significant increase in gas conservation in the Three Creeks area,” Baytex president and CEO James Bowzer said in a company release.
As part of the project, Baytex will build pipelines to deliver the gas from its existing natural gas collection system to the Genalta facility.
The pipelines and facility are expected to be completed in the fourth quarter of 2014, according to Baytex.
The project is in addition to Baytex’s existing commitments to supply Genalta with natural gas to generate one megawatt of power.
“Genalta is excited to expand its partnership with Baytex to create environmentally friendly power using produced gas,” Genalta CEO Graham Illingworth said.