Shell Canada Energy has finalized the sale of the massive Caroline sour gas plant northwest of Sundre and other assets in western Alberta to Pieridae Energy Limited, officials said Wednesday.
Effective Oct. 17 Ikkuma Resources Corp., a subsidiary of Pieridae Energy Limited, will operate assets including three distinct sour gas plants – Waterton, Jumping Pound and Caroline – and the gas fields which feed them, as well as a portion of the Shantz Sulphur Forming facility just off Highway 22 southeast of Sundre.
The Shantz facility is tied to the Caroline gas facility through an underground pipeline.
Pieridae Energy Limited and Shell announced the $190 million sale in June.
All site-based Shell employees and some Calgary-based Shell employees who predominantly support the assets will be retained, officials said.
“Shell has built a strong foundation of reliable, competitive and safe sour gas operations in Alberta over many decades. I want to thank the many Shell employees and contractors who contributed to the success of these assets,” Shell Canada president and country chair Michael Crothers said in a release.
While Shell will retain a 60 per cent ownership interest in Shantz, Ikkuma will operate the facility on behalf of the Caroline owners. Shell will maintain its sulphur, natural gas liquids and condensate sales and marketing businesses, he said.
Shell has also announced that it has established a $2 million legacy fund, which will provide non-profit organizations with access to funding to continue delivering important services in local communities in the greater Foothills region through 2020 and 2021, he said.
