SaskEnergy & Mistral Midstream Partner To Build Bakken NGL Plant in Saskatchewan

Vantage Ethane Pipeline Map

SaskEnergy announced the company's subsidiary, Bayhurst Energy Services, has agreed to a joint venture with Mistral Midstream to build a NGL processing plant near Viewfield, Saskatchewan. The plant will separate NGLs from Bakken production.

The facility, or straddle plant, will be located alongside SaskEnergy's natural gas pipeline system. NGLs will be recovered and marketed to commercial and industrial customers, while the natural gas will will be re-injected into the transmission pipeline.

"This project with SaskEnergy provides the opportunity for Mistral Midstream, already a major investor in energy infrastructure in Saskatchewan, to play a unique role in our economy with a facility that develops ethane and other natural gas liquids that are in high demand by the market in Western Canada," said Doug Kelln, CEO of SaskEnergy.

Mistral Energy is also constructing the Vantage Pipeline that will be operational in late 2013. The Vantage Pipeline will transport 40,000-50,000 b/d of ethane from Tioga, ND, to Alberta, Canada. The JV with SaskEnergy in just one more advance in providing midstream solutions in the Bakken.

"As oil and gas producers develop the Bakken play, it is important that the infrastructure that supports this investment in Saskatchewan provides sustainable market access and value to all stakeholders," said Terry Killackey, CEO of Mistral Midstream.

Construction on the plant will begin in 2014 and in-service is expected in early 2015

Read the full press release at saskenergy.com

Derailed Train In Canada Was Carrying Bakken Oil

Oil Rail Car Image

A train carrying Bakken oil crashed in Lac Megantic, Quebec. The train was pulling 72 car loads or approximately 50,000 barrels of oil when it lost control. The train was making its way through Canada in route to a refinery in New Brunswick. An investigation will ensue, but initial reports make it sound as if the air brake was engaged and someone shut down the engine. From there, the train rolled out of control almost seven miles before derailing in Lac Megantic. We've included a video report below:

The death toll now stands at 13, with 50 people still missing.

It's a horrible tragedy and I believe we owe it to ourselves to ask the question whether or not it should be as difficult as it is to build pipelines in the U.S.