A storage idea that’s worth its salt
LNG liquids to be pumped into caverns
ATCO Energy Solutions Ltd. has entered a partnership with Petrogas Energy Corp. to develop underground salt caverns near Fort Saskatchewan as storage for large quantities of propane, butane and ethylene.
The partners are developing four caverns that together will have capacity to store 400,000 cubic metres of natural gas liquids.
The storage facility, at ATCO’s Heartland Energy Centre, will be connected to an existing Petrogas truck and rail terminal that receives and distributes a range of hydrocar- bon products.
The terminal is being expanded to accommodate the new storage.
The first two caverns are targeted to go into operation in spring 2016, with the next pair ready in spring 2017.
The project will help move liquefied petroleum gas (LPG) products to North American markets and in- ternational export markets through the Petrogas LPG export terminal at Ferndale, Wash.
In an interview, ATCO Energy Solutions president Patrick Creaghan said brine ponds and other project infrastructure will support development of two further salt caverns after the first four are completed.
In total, there is potential to develop more than 40 salt caverns for hydrocarbon storage, he said.
“This storage opportunity, located where it is, with access to market, we believe provides a real opportunity for producers to manage their product and ultimately get product to market,” Creaghan said.
The caverns will be developed two kilometres underground in the Lotsberg salt formation.
Developing them involves drilling into the formation and using water jets to wash out the salt, which will be forced to the surface as brine.