Bellatrix Exploration Ltd. completed construction of, and began Phase 1 commissioning at, the Bellatrix O'Chiese Nees-Ohpawganu'ck deep-cut gas plant in the Alder Flats area of Alberta, the company said May 26.

Phase 1 can handle 110 million cubic feet per day (MMcf/d) of natural gas. Phase 1 was completed ahead of schedule and within about 3% of cost estimates.

The commissioning process involves operational and functional unit testing, initial startup and performance testing. Mechanical, instrument and electrical pre-commissioning work is complete. So is final pressure testing and purging, Bellatrix said.

The initial startup began May 22, and the first natural gas volumes were delivered to sales.

Commissioning will run through June, the company said.

The company secured firm takeaway capacity through Alberta’s main gas transmission system. Bellatrix entered firm transportation and fractionation agreements with a midstream company for takeaway, processing and marketing of all NGL and condensate products. The takeaway capacity will grow to 330MMcf/d on final Phase 1 startup. Volumes could grow to about 60Mboe/d without near-term material capital spending on infrastructure, the company said.

The Bellatrix Alder Flats plant will provide improved operational control and enhanced processing reliability. Natural gas volumes will go to the plant from both behind-pipe volumes that are currently constrained from area processing within the greater Ferrier region, and from operated natural gas volumes currently processed through third party facilities.

Bellatrix said the enhanced NGL recovery capabilities will provide about 14% uplift in revenue from the same gas stream currently processed through third party plants.

Calgary, Alberta-based Bellatrix Exploration Ltd. explores and produces oil and natural gas in western Canada.