Wolf Midstream is committing another $500 million to Alberta’s natural gas liquids network as Western Canada expands fractionation, rail capacity, and Pacific export infrastructure at the same time, bringing Wolf’s announced Phase Two and Phase Three NGL North investments since July 2024 to about $1.50 billion.
The privately held, CPP Investments-backed company said it reached a final investment decision on Phase Three of NGL North. The project will add roughly 0.6 billion cubic feet per day of natural gas processing capacity and lift the system’s NGL production capacity to about 110,000 barrels per day, including more than 80,000 bpd of ethane.
Wolf is also expanding its unit-train terminal at its Sturgeon County feedstock separation site to initial loading capacity of about 60,000 bpd. The rail project is expected in service later in 2026 and will handle both Wolf and third-party volumes.
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The company added that the vast majority of anticipated Phase Three NGL production is covered by long-term, fixed-fee agreements with investment-grade counterparties.
Construction is already underway with required permits and approvals secured. A third recovery train at Wolf Recovery Facility 2, northwest of Fort McMurray, is expected online in early 2027, taking that site above 1.1 Bcf/d of processing capacity. A third de-ethanizer at the Sturgeon County facility is also targeted for early 2027. Expansion at Wolf Recovery Facility 1 near Mariana Lake is expected in mid-2028, while a 37-megawatt gas-fired cogeneration facility is scheduled for 2028.
The buildout lands as Canadian National Railway reported NGL revenue ton-miles rose more than 15% year over year in Q2. CN management said additional fractionation capacity is expected to support longer-term NGL export growth through Prince Rupert, where the railway serves existing and planned LPG terminals.
The export side is also adding capacity. AltaGas said second-quarter LPG exports to Asia reached a record 144,420 bpd, up 13% year over year. Its 56,000-bpd Ridley Island Energy Export Facility is about 85% complete and is expected to begin commercial operations before the end of Q1 2027. A further 30,000 bpd propane expansion is scheduled for the second half of 2027.
