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SHELL'S $1-BILLION ENERGY PROJECT BEGINS PRODUCTION

 CALGARY, Alberta, March 9 /PRNewswire/ -- Shell Canada's $1-billion Caroline project began processing gas today from Alberta's largest natural gas field discovery in 20 years.
 Shell's plant near the village of Caroline, Alberta (approximately 170 kilometers northwest of Calgary) will produce enough gas to heat a city of 250,000 people for 25 years.
 Bob Taylor, executive vice-president, Resources, Shell Canada Ltd. (Toronto, Montreal, Vancouver, Calgary: SHC), says the $1-billion project is expected to generate significant revenue for the company, its partners, Alberta and Canada.
 More than 85 percent of the Caroline project's construction costs have been spent in Canada, with almost $750 million spent in Alberta.
 The Caroline gas field was discovered in 1986. Construction began in October 1990. The project provided about 7.5 million hours of work during its 30-month construction, with a peak workforce of 2,500 at the sites last summer.
 Taylor praised contractors and employees who worked on the project for their help in keeping the project on budget and on time, and for their dedication to safety, resulting in a safety award from the Alberta government and a safety record four times better than the Alberta construction industry average.
 "Working with the local communities to establish a co-operative relationship on all aspects of the project was key to its success," Taylor adds.
 About 150 people will be involved in Caroline's day-to-day operations with operating costs of about $50 million a year. Shell owns 72 percent of the Caroline field. Husky Oil Ltd. and Union Pacific Resources Inc. are among the other working interest owners.
 The plant will process 8.5 million cubic meters (300 million cubic feet) of raw gas a day to produce 3,000 cubic meters (18,800 barrels) of condensate, 4,200 cubic meters (26,400 barrels) of natural gas liquids, 4,000 tons (4,400 tons) of sulphur and 2.8 million cubic meters (100 million cubic feet) of sales gas per day. The raw gas contains 35 percent hydrogen sulphide.
 The plant's sulphur recovery facilities have the highest sulphur recovery rate of any major gas plant in North America and are designed to achieve a minimum of 99.8 percent sulphur recovery to meet new provincial guidelines. In addition, waste water and chemicals will not be discharged but will be recycled and re-used.
 The Caroline project incorporates the world's longest underground liquid sulphur pipeline, which carries liquid sulphur from the plant to the sulphur-forming facility at Shantz, 41 kilometers south.
 The plant will run at full capacity when all facilities are operating later this spring.
 Shell Canada Ltd. is 78 percent owned by Royal Dutch/Shell and 22 percent owned by private shareholders.
 -0- 3/9/93
 /CONTACT: Pat Chapman, manager, Public Affairs, Resources of Shell Canada, 403-691-2065/
 (SHC.)


CO: Shell Canada Ltd. ST: Alberta IN: OIL SU:

EH -- LA008 -- 4455 03/09/93 10:31 EST
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Publication:PR Newswire
Date:Mar 9, 1993
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