Baytex Energy Corp. has signed a 10-year agreement with Genalta Power Inc. (Genalta) to deliver the majority of the excess natural gas production associated with its Three Creeks heavy oil production in the Peace River area to a power generating facility to be constructed by Genalta. The project will generate 12 megawatts of low emission power, providing the daily energy requirement for over 14,000 homes. The project is in addition to Baytex's existing commitments to supply Genalta with natural gas to generate one megawatt of power.
As part of the project, Baytex will construct pipelines which will increase natural gas delivery capacity from its existing integrated natural gas collection system to the Genalta facility. The pipelines and facility are expected to be completed in the fourth quarter of 2014.