Blackbird Energy Inc. executed a binding take-or-pay gas handling agreement (GHA) with a third party for the firm transportation and processing of sour natural gas produced from Blackbird's condensate-rich Elmworth project, the company said May 19.

The GHA provides firm service transportation to the third party's sour gas plant and the processing of 6 million cubic feet per day of natural gas and associated liquids from Blackbird's Elmworth project.

The GHA will become effective by Jan. 1, 2017, and capacity will be available as early as Nov. 1, 2016, subject to certain third party facility enhancements and regulatory approvals. The GHA will continue for 24 months from the effective date, the company said.

Blackbird's infrastructure solution will include a battery, a pipeline gathering system and a water disposal system that will support future production growth.

The third party’s natural gas transportation tie-in point is 3.8 kilometers (2.4 miles) south of Blackbird's planned battery site.

Blackbird Energy Inc. is based in Calgary, Alberta.