CALGARY, Dec. 2, 2014 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera") announced today that it has agreed with Bellatrix Exploration Ltd. ("Bellatrix") to participate in a new deep-cut gas plant as a 35% owner (the "Plant") and related pipelines (collectively the "Facilities") currently being constructed by Bellatrix in the Alder Flats area of west central Alberta. Bellatrix currently anticipates the total cost of the Facilities will be approximately $230 million and is expecting that the first phase of the Plant will be on stream in mid-2015. Keyera will pay its proportionate share of the costs to construct the Facilities, including its share of costs incurred to December 31, 2014 for the Plant, which are anticipated to be approximately $23 million.
"Keyera is pleased to partner with Bellatrix to add gas processing capacity in a very active area of west central Alberta," said David Smith, Keyera's President and Chief Operating Officer. "Alder Flats is currently experiencing significant producer activity and available gas processing capacity is becoming limited. The Plant and associated gathering pipelines will help to ensure that producers continue to have processing options in the area."
The Plant will be operated by Bellatrix and developed in two phases. Phase I of the Plant will have design inlet capacity of 110 million cubic feet per day and is expected to be on stream by July 2015. The related pipelines being constructed consist of a 16-inch raw gas gathering line, a 4-inch condensate pipeline and a fuel gas line to service Bellatrix field compression and the O'Chiese First Nation. These pipelines are expected to be in-service at the same time as Phase I of the Plant becomes operational. Phase II is expected to add incremental design inlet capacity of 110 million cubic feet per day with a targeted on stream date in the second quarter of 2016. The Plant will be equipped with a turbo expander capable of extracting ethane-rich NGLs ("C2+ mix") from the raw gas stream.
Keyera Corp. (TSX:KEY) operates one of the largest natural gas midstream businesses in Canada. Its business consists of natural gas gathering and processing as well as the processing, transportation, storage and marketing of NGLs, the production of iso-octane and crude oil midstream activities.
Keyera's gas processing plants and associated facilities are strategically located in the west central, foothills and deep basin natural gas production areas of the Western Canada Sedimentary Basin. Its NGL and crude oil infrastructure, including pipelines, terminals and processing and storage facilities, as well as its iso-octane facility, are located in Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub. Keyera markets propane, butane, condensate and iso-octane to customers in Canada and the United States.
This document contains forward-looking statements based on Keyera's current expectations and assumptions relating to its business, the environment in which it operates, its future operations and the performance of its assets, including the Facilities currently under construction. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: producer interest in the services being offered; future operating results of the assets; the ability of Keyera to execute its strategic initiatives in connection with the Facilities; risks arising from co-ownership of the Facilities; availability and cost of construction crews and materials together with other construction and schedule risks; 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 operation and oil and gas production; 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. Unless otherwise required by applicable laws, Keyera does not intend to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Keyera Corp.
For further information: For further information about Keyera, please visit our website at www.keyera.com or contact: Keyera Corp., John Cobb, Vice-President, Investor Relations, or Lavonne Zdunich, Director, Investor Relations, or Nick Kuzyk, Manager, Investor Relations, Email: [email protected]; Telephone: 403.205.7670 / Toll Free: 888.699.4853