Shell finalizes transaction with Pieridae Energy Limited for Foothills sour gas business and announces community legacy fund
Oct. 16, 2019
Calgary- Shell Canada Energy today announced completion of the previously publicized agreement that will see Pieridae Energy Limited purchase its Foothills sour gas assets.
Effective October 17, 2019, Ikkuma Resources Corp. (“Ikkuma”), a subsidiary of Pieridae Energy Limited, will operate the Foothills assets. Shell previously confirmed the buyer will retain all site-based Shell employees and some Calgary-based Shell employees who predominantly support the Foothills assets.
The assets include three distinct sour gas plants (Waterton, Jumping Pound and Caroline) and the gas fields which feed them, as well as a portion of the Shantz Sulphur Forming Facility that is tied to the Caroline gas facility. While Shell will retain a 60% ownership interest in Shantz, Ikkuma will operate the facility on behalf of the Caroline owners. Shell will maintain its sulphur, natural gas liquids and condensate sales and marketing businesses.
“Shell has built a strong foundation of reliable, competitive and safe sour gas operations in Alberta over many decades. I want to thank the many Shell employees and contractors who contributed to the success of these assets,” said Shell Canada President and Country Chair Michael Crothers.
To recognize the support of longstanding Indigenous and community partners, Shell has established a $2 million legacy fund. The fund will provide non-profit organizations with access to funding to continue delivering important services in local communities in the greater Foothills region through 2020 and 2021.
Shell maintains a strong continued presence in Canada as one of the country’s largest integrated energy companies employing about 4,000 people. Shell has a 40% share in the multi-billion dollar LNG Canada project and also maintains other upstream assets and significant downstream operations in Canada through refining and chemicals, and a growing retail business with around 1,400 Shell-branded sites across the country.
Notes to editor:
- Details on the Shell Foothills Legacy Fund can be found at www.shell.ca/foothillsfund
- In the last ten years alone, Shell has invested over $5 million in the communities surrounding the Jumping Pound, Caroline and Waterton sour gas complexes.
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