An idea first generated through synergies with our base assets, the Warwick Gas Storage Project epitomizes Perpetual Energy's entrepreneurial, value-driven approach.
The Warwick Gas Storage business is a commercial park and loan operation that is located east of Edmonton, Alberta, Canada. It is well positioned in terms of its access to infrastructure as it sits on the TransCanada, Alberta main pipeline, very close to ATCO Pipelines and the Alliance Pipeline.
Capitalizing on the inherent value of the strategically located depleted Warwick Glauconitic-Nisku 'A' gas pool, the project consists of a 40 Bcf depleted gas reservoir with native cushion gas in place, 9 horizontal injection and withdrawal wells located on two central pads, and a compression facility currently under construction.
Development commenced in late 2009, with the acquisition of 3D seismic and the drilling and injection testing of the first horizontal well late that year. Drilling and testing of eight additional horizontal wells followed in the first quarter of 2010. Nova facilities were installed in April 2010, and injection of customer storage gas commenced in May 2010. Two new 8000 HP electric drive Ariel compressors will be installed along with noise control, measurement, monitoring and control and processing equipment necessary to meet sales gas delivery specifications.
The $57 million gas storage facility will initially utilize 8 to 10 Bcf, 1.5 cycle of the storage reservoirs working gas capacity ramping up to 17 Bcf, 1.5 cycle capacity in 2011. With no additional capital spending, expansion of the facility to reach 22 - 25 Bcf, 1.5 cycle of working gas capacity is forecast in 2011/2012.
Marketing related questions please contact:
VP, Gas Marketing