A Calgary-based company is starting construction on a second liquid nitrogen facility in north-eastern British Columbia, while work on another plant at the same site is not yet completed.
A Calgary-based company is starting construction on a second liquid nitrogen facility in north-eastern British Columbia, while work on another plant at the same site is not yet completed.
“The original decision we made to build a plant in Dawson Creek was based on our experience in north-eastern British Columbia and the development of Horn River and Montney,” said Joe Ladouceur, Ferus Inc. vice president of external affairs and treasurer.
“We currently don’t have any facilities in the region, but we have two in Alberta in Strathmore and Joffre, which are trucking nitrogen to Dawson Creek.”
In July 2010, Ferus Inc. started construction in Dawson Creek on a $20 million liquid nitrogen plant with a production capacity of 200 tonnes per day.
“We know the demand is there with our existing clients, so it was just a logical decision to build in the heart of this demand,” said Ladouceur.
“As we begin to build, customers were asking for commitments to supply. We quickly found out that the demand was greater than the capacity of the original facility. We planned to build another plant next to the first one some time in the future, but that day came a lot sooner than expected.”
Last month, before construction on the first plant was completed, Ferus began construction on a second $20 million liquid nitrogen plant on the same site.
The strong demand for products and services in B.C.’s rapidly expanding energy sector is the main factor behind the decision to start construction on these facilities, which will have a combined capacity of 400 tonnes per day.
“We are doing a lot of site preparation and laying foundations for the first liquid nitrogen facility in Dawson Creek,” said Ladouceur. “The plants are manufactured in the U.S. and the modular components are delivered to the site in trucks, where they are assembled.”
At peak construction, the project requires about 40-50 different trades people involved with assembly, tie in work, plumbing electrical and foundation work.
After the modules are assembled, the plumbing will be connected, which is necessary for the nitrogen to flow into large holding tanks. The electrical work will also be needed to be completed to move the nitrogen from the storage tanks to a loading station.
“We literally bring air into the plant, which is compressed and cooled,” said Ladouceur. “The air eventually turns into nitrogen at -180 degrees Celsius.”
Construction of the first plant is scheduled for completion this fall and the second liquid nitrogen facility is expected to be fully operational in early 2012.
Liquid nitrogen is made by Ferus using air that is compressed using electric-driven compressors. After initial compression, trace gases are removed and pressure is released, further cooling the air.
This process is repeated until oxygen (O2) turns to liquid and is separated from gaseous nitrogen. The oxygen is then released back into the atmosphere.
“We deliver the product from the plant to the well site, where it is used for well stimulation,” said Ladouceur. “The nitrogen is injected into the well at high volume and pressure, where it cracks the rock in the well and increase the wells productivity.
“The expansion of our nitrogen production capacity in north-eastern B.C. demonstrates Ferus’ ongoing commitment to the energy sector” said Dick Brown, president and CEO of Ferus.
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