Western Canada welcomes expanding gas supply, processing capacity

J. Stell, Contributing Writer Gas processing plant utilization is fairly steady in Canada, despite oil price levels that have impacted propane and ethane values. When oil prices bounce back to more typical levels, where the value of oil lifts prices for propane and butane, then gas processing will become more economical, according to Bill Gwozd, senior vice president for energy consulting firm Solomon Associates. “When oil prices were down in the $40/bbl range, the low price definitely had an adverse impact on gas processing; however, in western Canada, where 98% of all Canadian gas processing takes place, the overall gas supply really hasn’t diminished during the past year,” Gwozd said. “