OTG to expand resin-coated proppant manufacturing plant in Canada

US-based technology company Oilfield Technology Group (OTG) is planning to expand its resin-coated proppant manufacturing facility in Canada to provide a more efficient supply of the products to fracturing service companies and operators in the oil and gas industry.

OTG is a part of Hexion, formerly known as Momentive Specialty Chemicals, that provides thermoset resins.

To be completed by the last quarter of this year, the expansion includes the purchase of more land for the installation of track that will accommodate more than 100 railcars.

New storage silos will allow sand supplies, especially in peak seasons.

The increased production capacity will also help meet market demand quickly and allows on-time delivery of product through Hexion's own transloading network that serves the Western Canadian Sedimentary Basin.

"Hexion will be ready to meet the demands of the industry when the market recovers."

The phased expansion will increase capacity and logistics capability to the Canadian proppant market.

Oilfield Technology group senior vice-president and general manager Jerry Kurinsky said: "Hexion is a leading supplier of resin-coated proppants to the oil and gas industry and this expansion will increase our manufacturing and delivery capabilities to meet the needs of our customers.

"These investments demonstrate our continued commitment to our customers in Canada.

"Hexion will be ready to meet the demands of the industry when the market recovers."

Currently, the company's Canada plant manufactures a variety of products that include Hexion's Yukon Black proppants, which are new resin-coated sands that bond at low temperatures.

Yukon Black proppants are suitable for fracture treatments in the low temperature reservoirs in Canada where flowback control is required.

Resin-coated proppants are used in the hydraulic fracturing process to help optimise production from oil and gas wells.

OTG's other product line includes various production chemicals such as hydrogen sulphide scavengers for crude oil and natural gas production.