Calgary -based Wolf Midstream announced a $500-million expansion of its natural gas liquids pipeline system which transports petrochemicals like propane and ethane to bigger distribution hubs. The company, backed by the Canada Pension Plan Investment Board , said Tuesday it reached a final investment decision on the project’s third phase, which adds to a second expansion announced in July 2024. The company’s NGL North System, commissioned in 2023, recovers, separates and transports natural gas liquids like ethane, propane, butane and condensate from natural gas produced in Alberta. While they’re produced from gas, these heavier molecules condense into a liquid state at normal surface temperatures. “Phase three continues the disciplined expansion of our growing NGL system, moving the platform towards its ultimate design capacity,” said Bob Lock, Wolf’s chief executive officer, in a press release. The project will ultimately have the capacity for roughly three billion cubic feet per day of natural gas processing and 170,000 barrels per day of natural gas liquids production . The latest expansion adds roughly 600 million cubic feet per day of processing capacity system wide , bringing the total to just over two billion. The CPP’s investment arm, Wolf ’s financial backer since 2016, signalled continued support. Bill Rogers, the pension manager’s head of sustainable energies, said Wolf has grown into a leading, integrated energy infrastructure business in Alberta. “This expansion is another meaningful step in that evolution, positioning Wolf to support growing customer demand and continued critical infrastructure development in the province,” Rogers said in a press release. “We continue to support Wolf’s growth and its ability to create long-term value for the CPP Fund.” Varcoe: 'Do no harm': Should Alberta step in to fix gas system constraints, given past energy interventions?Pension CEOs at home and abroad hail summit as positive starting point Most of the new production from the latest expansion is already spoken for. The vast majority of phase three’s output is locked in under long-term, fixed-fee contracts with customers. Wolf’s consistent rollout of expansions, each within three years, illustrates just how critical Alberta’s natural gas liquids infrastructure is to attracting institutional capital. The Canada Pension Plan Investment Board, which manages close to $900 billion in assets, views Wolf Midstream as a long-term investment for that exposure. Story developing…