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ENERGY: Altagas Income Trust to build new pipeline from BC, to expand Pouce Coupe plant by 90 mmcf/d
        (AlbertaIndex, April 13) – AltaGas Income Trust said it will construct a new natural gas pipeline to bring 90 million cubic feet/day (mmcf/d) of natural gas from the Noel region of British Columbia to its Pouce Coupe gas processing facility in northwest Alberta. The company also said it will add 90 mmcf/d of sour gas processing capability to the facility, which currently processes around 8 mmcf of sweet gas daily.

        The acid gas recovered from the sour gas processed at the Pouce Coupe facility will be re-injected into existing wells in the vicinity of the facility, minimizing the facility’s sulphur emissions.
       

Altagas said the Noel pipeline construction project and the Pouce Coupe facility expansion project are expected to cost a total of C$90 million. (US$1=C$1.15).
        David Cornhill, AltaGas chairman, President and CEO, said: “The Noel region is an under-developed area with significant potential for reserves of sour gas. These projects will provide producers in the Noel region with the most competitive, economic and environmentally friendly option to process their gas. The Pouce Coupe facility will use acid gas injection to minimize the emissions that result from gas processing.”
        “These projects fit AltaGas’ strategy for our field gathering and processing segment and when completed should increase our throughput in this segment by over 10%.”
        Underpinning the project is a binding contract for firm gas gathering and processing capacity with Devon Canada Corporation which is developing  plans for drilling wells within the gathering area of the pipeline system.
        Altagas said the binding contract is subject to certain economic and regulatory conditions precedent. Additional capacity in the Noel pipeline and the expanded Pouce Coupe facility is available for other gas producers.
        As currently proposed, a 12-inch pipeline will be built from the north Noel region. The diameter of the pipeline will increase to 16 inches for the portion crossing the Alberta-BC border and ending at the Pouce Coupe plant in Alberta.
        The projects are subject to provincial and federal regulatory approvals, are expected to begin construction in mid-2007 and are expected to be in service by April 2008.
        AltaGas Income Trust is one of Canada’s largest and fastest growing integrated energy infrastructure and services organizations. Since 1994, AltaGas Income Trust has expanded its business to include natural gas gathering, processing and transmission, extraction of ethane and natural gas liquids, power generation, marketing of natural gas and natural gas liquids, as well as retail energy services to commercial, industrial and institutional end-users across Canada.
        AltaGas Income Trust’s units are listed on the Toronto Stock Exchange under the symbol ALA.UN.



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