First Helium has confirmed plans to bring its gas gathering pipeline infrastructure into service in conjunction with the planned installation of the 15-25 well helium processing facility in 2024.
The pipeline system will allow the exploration and development company to deliver natural gas sales volumes through the main natural gas sales system operated by TC Energy Corporation.
Natural gas liquids will be collected and trucked to regional sales terminals, and helium will be picked up at First Helium’s planned helium processing facility under its 10-year helium gas take-or-pay supply agreement.
Earlier this year, First Helium said that it had agreed to sell 80% of its produced helium volumes from its Worsley Property in Alberta, Canada, to a major industrial gas supplier.
The long-term helium supply agreement signed by the two companies is worth up to $100m in potential revenue to First Helium over the first five years, depending on the pace of production.
Ed Bereznicki, President and CEO of First Helium, described the pipeline infrastructure as a key component for future helium production. He added that it will help the company realise added value for its produced natural gas, along with its liquids and helium volumes.
Bereznicki continued, “In addition, successful completion and testing of the horizontal helium well, drilled last summer, will enable First Helium to confirm a mapped, highly scalable regional play, plus deliver additional volumes under its supply agreement.”
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