What could be better than a new year loaded with growth potential for the international energy industry? Well, for one, a strategic development being upgraded could certainly count. AltaGas, a major North American infrastructure company, has advanced the Dimsdale project, bringing the second Phase into operation recently. Canada is aiming to develop its natural gas infrastructure to compete with the remarkable expansion of the US energy sector this year.
Canada: A growing competitor in the international energy market, or simply second best to the US?
As the United States energy industry reaches for the stars, Canada has fostered a welcoming environment for energy projects that will play a key role in advancing the nation’s energy developments. Canada is aiming to compete with the dominant US energy market as new developments come online over the coming months and years.
As new oil production opportunities in the United States are detailed by developers, AltaGas has taken a positive Final Investment Decision on the Dimsdale Phase II expansion project. In other developments, AltaGas has also reshaped the company’s leadership, which has created a new opportunity for the company to advance its standing on the international energy stage.
AltaGas announces Chief Financial Officer retirement and transition
For any company, reshaping leadership can often lead to a renewed sense of optimism and create a new opportunity to reshape the company’s focus. In April of this year, AltaGas’s CFO, James Harbilas, will retire. He will be succeeded by Sean Brown, following an extensive search by the company to find the next leader to advance the company’s plans for the years ahead.
“Over the past six years, AltaGas has de-leveraged its balance sheet, completed strategic acquisitions and divestitures and advanced a disciplined capital allocation framework across our two core businesses. We thank James for his strong leadership in helping achieve these significant milestones and for his commitment to a successful transition.” – Vern Yu, AltaGas’ President and Chief Executive Officer
Can AltaGas deliver on the Dimsdale Phase II Expansion?
The company has recently boosted the Canadian natural gas storage capacity by taking a positive Final Investment Decision on the Dimsdale Phase II Expansion. The remarkable 30 Bcf expansion will benefit from several multi-year, take-or-pay storage service contracts, and even includes additional capacity being taken by Tourmaline and Gunvor.
Adding to the additional capacity taken by Tourmaline and Gunvor, the project has secured four new Phase II customers. The expansion project will include the necessary construction of additional compression and dehydration capacity, as well as AltaGas drilling five new storage wells, dramatically increasing the storage capacity in Alberta Montney.
Alberta has become the home of the Canadian energy industry in recent years
Alberta is set to see a new crude-export pipeline to Canada’s West Coast becoming a reality in the not-too-distant future, and it will play a vital role in creating a new era of energy resource production for the North American nation.
AltaGas has noted its expectation for the project to cost approximately $165 million, with the company targeting a full in-service date by mid-2027, at the very latest. Strong customer demand has seen Canada become one of the largest energy-producing nations in the world, and expectations are for the Canadian energy industry to grow even more in the years to come.
The Dimsdale expansion exemplifies the growth of the upstream sector in Canada
Taking the progress made by AltaGas in the Dimsdale Expansion into account, as well as the Canadian regulator approving Westcoast Energy’s Sunrise pipeline expansion, the reality is that the Canadian energy industry is set to grow substantially over the coming years as new customers and existing ones increase their orders and demand for natural gas from the Canadian market.
