Expander has entered into a multi-year natural gas supply agreement with Manitok Energy Inc. (Manitok) to provide feedstock from its Carseland gas plant to the Expander GTL plant. Under the terms of agreement, Manitok agrees to supply 3.7 - 5 million ft3/d or British thermal unit (Btu) equivalent of natural gas and natural gas liquids subject to available production and reserves. The GTL plant will provide incremental processing capacity to allow Manitok to increase its oil production in the area beyond its current plans. An offtake agreement is also in place for 100% of the synthetic diesel produced, to be marketed as SynDiesel®.
The two companies are reviewing the application of Expander’s technologies to other Manitok properties exhibiting the same high gas liquids content in the production stream, such as the Stolberg and Willesden Green areas in west central Alberta. Expander’s EGTL process is ideal for processing shale gas and solution gas, such as the Monteney and Duvernay, into higher value SynDiesel.
The Expander GTL plant will the first of its kind.
