Trican Well Service Ltd. is pleased to announce that it will expand its fleet of next generation, low emissions fracturing equipment by upgrading a second set of existing pumping equipment with CAT Tier 4 dynamic gas blending engines. The conversion to Tier 4 DGB engines will provide industry leading reductions in emissions and lower fuel costs for our customers.
The Company will be upgrading 48,000 hydraulic horsepower from conventional diesel engines to the Tier 4 DGB engines, bringing Trican’s total Tier 4 fleet to 84,000 HHP. The Tier 4 DGB engine displaces 85% of diesel with clean burning natural gas, reducing CO2 and particulate matter emissions. Combined with Trican’s idle reduction technology, the fleet will lower overall fuel consumption and emissions, key components in Trican’s commitment to Environmental, Social and Governance initiatives.
The Company is in advanced discussions with several customers on multi-year contracts that meet Trican’s required return metrics. These customers have made commitments to improve the sustainability of their operations and see the deployment of Tier 4 DGB powered hydraulic fracturing fleet as a critical part of their strategy to achieve their ESG goals.
The cost of the upgrade for the second low emissions fleet is expected to be approximately $28 million with $18 million in capital to be spent in 2021. Accordingly, the Company’s 2021 capital budget has been increased to $58 million. The remaining $10 million will be incurred in 2022 with deployment of the equipment anticipated in the spring of 2022.
The Company anticipates that its capital program will be funded from cash on hand and free cash flow if required.
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