Advantage Oil & Gas Ltd. and Competitive Power Ventures (CPV) have agreed to a long-term gas supply agreement for the CPV Three Rivers Energy Center (CPV Three Rivers) in Grundy County, Ill.
Advantage will supply 25,000 MMbtu per day of clean, low emissions natural gas for a 10-year period, commencing upon CPV Three Rivers reaching commercial operation in early 2023.
Commercial terms of the agreement are based upon a spark-spread pricing formula, providing Advantage revenue diversification through exposure to PJM power prices, back-stopped with a natural gas price collar which supports Advantage’s ongoing development economics. The commencement date of this agreement complements Advantage’s existing market diversification strategy, both in term and market access.
Advantage will supply natural gas to CPV Three Rivers from its 400 mmcf/d Glacier Gas Plant located near Grande Prairie, Alta., in the heart of the Montney fairway. The Glacier Gas Plant is a low emissions facility that incorporates carbon capture and sequestration technology.
CPV Three Rivers is a state-of-the-art 1,250-megawatt natural-gas-fueled, combined-cycle electric generation facility that will use GE’s latest highly-efficient HA turbine technology, enabling unmatched efficiency of greater than 64%, with industry-leading flexibility. By displacing older, less efficient generation, this project is projected to avoid 1.7 million tons of carbon dioxide emissions per year.
(CNW)
