Its partner is Bayhurst Energy Services Corp., a subsidiary of Crown corporation SaskEnergy Inc., Calgary-based Atco said Friday.

The plant, licensed to process 2.5 million cubic feet of sour gas daily, includes about 22 kilometres of pipeline serving four regional producers.

“This first-ever joint venture with SaskEnergy fits our growth strategies, complements our existing business and brings together the skills of two solid companies, Atco Midstream president Kevin Cumming said in a release.

Bayhurst will operate the gas plant, with Atco Midstream providing operational and marketing support. The gas will be delivered to SaskEnergy‘s transmission subsidiary, TransGas.

It‘s the second expansion of Atco Midstream into Saskatchewan. With the purchase of Wolcott Gas Processing Ltd., in 2001, Atco Midstream acquired an interest in the Nottingham gas plant and Wolstitmor gathering systems, and has since expanded the gathering system in southeastern Saskatchewan _ as well into Manitoba.

SaskEnergy has operated an associated gas facility in the Kindersley, Sask., area since 1957. The firm delivers natural gas to more than 332,000 residential, farm, commercial and industrial customers through its 80,000-kilometre distribution and transmission pipeline network.

Atco Midstream is part of the Atco Group of companies, an Alberta based worldwide organization of companies with assets of $7.8 billion and more than 7,000 employees involved in power generation utilities and global enterprises including manufacturing and logistics.

PIN/Oilweek.Com