major pipeline under construction in southeast Saskatchewan will
provide access to new natural gas supply being developed in the Bakken
light oil formation, SaskEnergy said Thursday.
$29-million, 117-km pipeline from Alameda to Whitewood being developed
by TransGas, the transmission and storage subsidiary of SaskEnergy,
will transport associated gas to customers in Saskatchewan.
gas is natural gas extracted during the development of oil reserves.
If pipeline capacity is unavailable or too far from existing natural
gas infrastructure, oil producers must flare or burn off excess natural
gas, resulting in greenhouse gas emissions.
Alameda-Whitewood pipeline taps into an important long-term natural gas
supply that will be used to fuel Saskatchewan's growing economy," said
Dustin Duncan, minister responsible for SaskEnergy.
oil companies can significantly reduce their greenhouse gas (GHG)
emissions by capturing, rather than flaring, associated gas.
Pending provincial government regulations will make it necessary for oil producers to capture more associated gas, he added.
pipeline's peak capacity will allow the energy industry in southeast
Saskatchewan to reduce CO2 levels from natural gas flaring by the
equivalent of annual emissions produced by heating 105,000 homes in
Saskatchewan," Duncan said.
"That's every household in Saskatoon and Regina combined."
Point Energy Corp., one of the major producers of Bakken oil, expects
the Bakken play to provide years of crude oil and natural gas
production and reserves growth.
"We're pleased TransGas is able
to provide the necessary infrastructure to facilitate this long-term
growth," said Trent Stangl, vice-president of marketing and investor
relations for Crescent Point.
Construction of the pipeline has been awarded to Carson Energy Services Ltd. of Lampman.