Energy infrastructure company AltaGas Ltd. will jointly build a natural gas processing plant and a NGL separation train with a privately held producer in the Montney shale play in western Canada.

AltaGas said on Jan. 23 that while the deep-cut processing facility will be jointly owned, AltaGas will fully own the NGL separation train and a rail terminal.

The plant is expected to cost between CA$100 million and CA$110 million (US$75 million to US$83 million), while the separation train and rail terminal are expected to cost about CA$60 million or CA$70 million. (US$1 = CA$1.33)