In a partnership with Petrogas Energy, ATCO Energy Solutions plans to develop four salt caverns, with a capacity to store around 400,000m³ of propane, butane and ethylene.
This is part of the companies’ plan to offer the natural gas liquids (NGL) market in western Canada with another alternative for hydrocarbon storage.
The storage facility will be located at ATCO’s Heartland Energy Centre near Fort Saskatchewan.
ATCO Energy Solutions president Patrick Creaghan said: "ATCO Energy Solutions and Petrogas bring proven expertise in the development, operation, and management of large scale hydrocarbon facilities.
"The location and in-service date of this storage facility have been strategically selected to help customers solve the logistical challenges that restrict moving NGL product to market.
This facility will be linked to Petrogas’ existing Fort Saskatchewan hydrocarbon truck and rail terminal, which presently receives as well as distributes several products in the marketplace of western Canada.
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By GlobalDataPetrogas Energy president and CEO said: "This development will provide a unique market option and establish enhanced storage services to Alberta’s Industrial Heartland.
"The Petrogas terminal is undergoing expansion to accommodate this storage initiative and provide additional throughput and distribution capacity.
"This project will support the movement of increasing volumes of Western Canadian LPG production to traditional North American markets as well as key International export markets through Petrogas’ West Coast LPG export terminal at Ferndale, WA."
Currently, cavern drilling as well as long lead procurement are underway for the facility, which will be constructed and operated by ATCO Energy Solutions.
The companies plan to begin commercial operation for two caverns by the second quarter of 2016.
Another two caverns are expected to be completed by the second quarter of 2017.
