Alberta natural gas company lands quarter-century contract with unnamed private firm

By Medicine Hat News on January 29, 2025.

A natural gas producer has inked a 25-year deal to directly supply an off-the-grid power plant that will feed a proposed data centre in central Alberta.

Calgary-based Pine Cliff Energy announced Jan. 17 that it has a definitive agreement with an unnamed private company to supply 3,200 and 4,800 gigajoules of gas per day at a planned facility adjacent to a Pine Cliff facility. The exact location was not released, though Pine Cliff has extensive operations in the Viking, Caroline and Drumheller areas, along with other extensive fields in the southeast operating area, near Medicine Hat, and southwest Saskatchewan.

The supply agreement states that Pine Cliff will provide gas based on the 12-month average of New York Mercantile Exchange commencing when the unnamed company begins operations. That is dependent on several factors, including timeline, which are under the control of the data centre developer and subject to regulatory approval.

Pine Cliff’s average total gas production in late 2024 was 108,000 gigajoules per day.