CANADIAN GULF OIL COMPANY today announced plans for the construction of a 225 ton per day sulphur plant at its PINCHER CREEK field, approximately 50 miles southwest of Lethbridge and 105 miles southwest of Calgary.
The company's initial plant will be the largest in Canada and is being constructed at this time to supply the demands of expanding industry, Work is to begin immediately and when completed next September the company will be a prime producer of this important basic chemical.
According to Canadian Gulf a contract for the delivery of elemental sulphur in a liquid state already has been signed with Northwest Nitro Chemicals, Ltd, which will take a substantial part of the plant's output.
The new Canadian Gulf installation will produce 225 tons of sulphur and 1,900 barrels of condensate per day from 55 million cubic feet of natural gas. The gas from the sulphur producing operation will be returned to the reservoir pending completion of the TransCanada Pipe Line which will provide a market for the natural gas.
Last week officials of TRANSCANADA PIPELINES LIMITED and Canadian Gulf announced the signing of a long term sales and purchase contract for one trillion three hundred million cubic feet of natural gas from the Canadian Gulf Pincher Creek field.
The contract calls for the purchase by TransCanada PipeLines of a minimum of one hundred million cubic feet of gas daily during the first year and a minimum of one hundred and seventy million cubic feet daily each year for the balance of the 25-year contract.
According to the August report on Alberta's oil and gas industry, published by the PETROLEUM AND NATURAL GAS CONSERVATION BOARD, sulphur plants in this province produced 2,095 short tons during the month. Shell's plant at Jumping Pound produced 1,176 tons while the Royalite plant at Turner Valley yielded 919 tons. Cumulative production for the first seven months of this year amounted to 18,052 tons. Gross value of sulphur produced during August was $127,730.