Canada’s privately owned Wolf Midstream announced last week that it had taken a final investment decision (FID) on the Phase Three expansion of its NGL North System. The company, which is backed by the Canada Pension Plan Investment Board (CPP Investments), said this project represents an incremental investment of roughly CAD500mn ($354mn) in the Canadian province of Alberta.

According to the company, NGL North is an integrated system that recovers, separates and transports natural gas liquids (NGLs) from natural gas in Alberta. These NGLs include ethane, propane, butane and condensate.

The latest construction phase follows the roll-out of the NGL North Phase Two expansion, which Wolf announced in July 2024. Under Phase Three, Wolf will further increase the production of NGLs, which it said would be available to both domestic and international markets.

The Phase Three expansion will add around 600mn cubic feet (16.7mn cubic metres) per day of gas processing capacity to the NGL North System. The company specified that it was adding a third NGL recovery train at each of its two northern Alberta recovery facilities. The expansion will also include a gas-fired cogeneration facility, expanded de-ethanisation capacity and an expanded unit-train rail terminal at the Wolf Feedstock Separation (WFS) facility, Wolf said.

The company added that the “vast” majority of expected NGL production from Phase Three was already contracted under long-term, fixed-fee commercial arrangements against what it described as investment-grade counterparty credit.

The required permits and approvals for the expansion are already in hand, and Wolf said that construction and development activities on the core components of the project were already “well underway”.

“Phase Three continues the disciplined expansion of our growing NGL system, moving the platform towards its ultimate design capacity of approximately 3 bcf [85 mcm] per day and 170,000 bpd of NGL production,” stated Wolf’s president and CEO, Bob Lock.

“Since our initial investment in Wolf over a decade ago, the company has evolved into a leading, integrated energy infrastructure business in Alberta and an important contributor to Canada’s energy sector,” added CPP Investments’ managing director and head of sustainable energies, Bill Rogers. “This expansion is another meaningful step in that evolution, positioning Wolf to support growing customer demand and continued critical infrastructure development in the province.”