CALGARY, ALBERTA–(Marketwired – July 20, 2016) – Baytex Energy Corp. (“Baytex”) (TSX:BTE)(NYSE:BTE) is pleased to announce a multi-year natural gas supply agreement with a subsidiary of Kineticor Resources Corp. (“KRC”) to support KRC’s proposed 100MW power project in Peace River, Alberta (the “Project”). This is the largest of two gas-to-power initiatives we have concluded to support our gas conservation strategy in Peace River.
James Bowzer, Chief Executive Officer, said “Baytex’s gas conservation strategy in Peace River is achieving industry leading environmental performance results. This strategy integrates the use of gas gathering, underground gas storage and power generation to maximize the use of solution gas and significantly reduce flaring and fugitive emissions.”
Once constructed, the Project will allow us to reduce flaring and achieve our gas conservation targets in the region. To-date, we have invested more than $100 million in infrastructure to manage and reduce the emissions from our heavy oil operations in Peace River. Our integrated approach to emissions management includes vapour recovery, pipelines, compressors, gas storage and air monitoring.
The Project will convert solution gas into electrical energy to be sold directly into the Alberta power market. At 100MW, the Project will generate electricity sufficient to meet the needs of nearly 90,000 homes in Alberta. The Project, which is subject to regulatory and environmental approval and KRC financing, is expected to be operational in the second half of 2017.
The Alberta Climate Leadership Plan has identified emissions from direct venting, fugitive emissions and flaring as the largest source of methane emissions in Alberta today. Baytex has led by example with its integrated gas conservation strategy in Peace River. Today’s announcement reconfirms Baytex’s leadership and commitment to our gas conservation strategy for our Peace River operations.