CALGARY, Nov. 7, 2017 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera") today announced plans to construct the North Wapiti Pipeline System (the "Pipeline System"), providing critical infrastructure and services to producers developing the Montney north of the Wapiti River. The Pipeline System extends the capture area of Keyera's recently approved Wapiti Gas Gathering and Processing Complex (the "Wapiti Gas Plant") and includes a 12-inch sour gas gathering pipeline, an 8-inch condensate and water pipeline, and a compressor station.
The Pipeline System is underpinned by a long-term, take-or-pay natural gas gathering and processing agreement with privately owned Pipestone Oil Corp. (the "Company"). The Company has also entered into a separate long-term agreement with Keyera to secure fractionation and marketing services for its natural gas liquids extracted at the Wapiti Gas Plant, which is currently under construction.
The Pipeline System is currently estimated to cost approximately $120 million with an expected in-service date in the second half of 2019, pending the final routing and timely receipt of all regulatory approvals and permits. Keyera looks forward to working with customers and other stakeholders to develop the required infrastructure in an environmentally and financially responsible manner.
"We are excited to extend the capture area of our Wapiti Gas Plant to lands north of the Wapiti River to meet the needs of producers in the Pipestone development area of the Montney," said Bradley Lock, Keyera's Senior Vice President of Gathering and Processing. "This Pipeline System not only enhances our midstream services in one of the most exciting areas in the Western Canada Sedimentary Basin, but these contracted volumes also provide the foundation for Keyera to sanction the second phase of our Wapiti Gas Plant in the future. The second phase will add an additional 150 million cubic feet per day of processing capacity to align with producers' development plans."
Keyera Corp. (TSX:KEY) operates one of the largest midstream energy companies in Canada, providing essential services to oil and gas producers in the Western Canada Sedimentary Basin. Its predominantly fee-for-service based business consists of natural gas gathering and processing, natural gas liquids processing, transportation, storage, marketing, iso-octane production and sales, and an industry-leading condensate system in the Edmonton/Fort Saskatchewan area of Alberta. Keyera strives to provide high quality, value-added services to its customers across North America and is committed to conducting its business ethically, safely and in an environmentally and financially responsible manner.
About Pipestone Oil Corp.
Pipestone Oil Corp. is a private oil and gas exploration and production company located in Calgary, Alberta. The Company has targeted the highly prospective condensate rich Montney formation located in the Pipestone area of Alberta. The Company is a wholly-owned subsidiary of Canadian Non-Operated Resources LP, a Calgary based oil and gas investment fund, which is run by a team of experienced operating, technical, and financial professionals at Grafton Asset Management Inc. Grafton Asset Management Inc. is a Calgary-based investment firm focused on investing across the capital structure of top-tier Canadian energy companies.
This news release contains forward-looking statements based on Keyera's current expectations and assumptions made by the management of Keyera relating to its business, the environment in which it operates, its future operations and the performance of its assets, including the proposed Pipeline System and the proposed expansion of the Wapiti Gas Plant. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: the accuracy of the construction schedule and cost estimates; producer interest in the services being offered; timing and success of producer drilling plans; future operating results of the assets; the ability of Keyera to execute its strategic initiatives in connection with the Pipeline System and the Wapiti Gas Plant; availability and cost of engineering resources, construction crews and materials; finalization of routing for the Pipeline System; timely receipt of all necessary regulatory approvals or changes in requirements; changes in production decline rates; weather conditions; commodity supply/demand balances and prices; activities of producers, competitors, customers, business partners and others; overall economic conditions; access to capital and financing alternatives; operational risks associated with gas plant and pipeline operation; environmental liabilities; potential delays or changes in producer development plans in the area; the legislative, regulatory and tax environment; and other known or unknown factors. There can be no assurance that the results or developments anticipated by Keyera will be realized or that it will have the expected consequences for or effects on Keyera.
For additional information on these and other factors, see Keyera's public filings on www.sedar.com. The information provided in this release is given as of the date hereof. Readers are cautioned that they should not unduly rely on forward-looking information.
SOURCE Keyera Corp.
For further information: Additional Information: For further information about Keyera, please visit our website at www.keyera.com or contact: Keyera Corp., Lavonne Zdunich, Director, Investor Relations, or Nick Kuzyk, Manager, Investor Relations, Email: [email protected]; Telephone: 403.205.7670 / Toll Free: 888.699.4853