Declining natural gas reserves have prompted Shell Canada to shutter one of the two processing plants that make up its Caroline Gas Complex.
The company plans to permanently close one of the “trains” at the facility northwest of Sundre during an upcoming maintenance shutdown, said Amber Bassen, a communication adviser with Shell Canada. The other train will also cease operations during the May 14 to June 28 shutdown, but will resume production thereafter.
About 130 people work at the Caroline Gas Complex. This number shouldn’t be affected by the change, said Bassen.
“It doesn’t result in any long-term job losses.”
The Caroline Gas Complex, which is one of the largest sour gas processing facilities in the world, was built in the early 1990s. It followed the discovery in 1986 of the Caroline gas field — the biggest natural gas field in Alberta to be found in 20 years.
Train 1, which is the one scheduled for closure, was commissioned in March 1993. Train 2 went into production two months later.
Although the nearby Limestone and Panther natural gas fields were subsequently tied into the Caroline Gas Complex, the gas processed has fallen well below its 10.85 million cubic metre per day capacity.
“The production from the field slowly has been declining over the last 20 years,” said Bassen, adding that the current flow is about 4.8 million cubic metres a day.
“We’ll keep Train 2 online, and that will continue to process existing and future gas from the Panther, Limestone and Caroline gas fields.
“We’re by no means shutting down, or exiting the community.”
Train 1’s equipment will remain on site, said Bassen, and might eventually be used for other operations. Asked if it might return to use if natural gas prices improve from their current lows, she said that might be a possibility but the current decision was based on the availability of gas.
“The low price of natural gas didn’t factor into the production figures.”
The Caroline Gas Complex separates raw gas and liquid into methane, condensate, sulphur and natural gas liquids like propane, butane and ethane. The condensate is shipped to refineries for conversion into fuel products.
Bassen said the upcoming maintenance shutdown is the first of this magnitude since 2006. It’s expected to result in some 550 contractors working on site, including may who live in the area.
Shell is encouraging the use of buses, vans and car-pooling to minimize traffic impacts, and also plans to transport workers during off-peak periods.
hrichards@www.reddeeradvocate.com