CALGARY, Jan. 8, 2014 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera") announced today that it is proceeding with an expansion at its NGL fractionation and storage facility in Fort Saskatchewan ("KFS"). The project will involve more than doubling the facility's existing C3+ fractionation capacity from 30,000 barrels per day to 65,000 barrels per day.
In conjunction with the fractionator, the project will include the construction of new product receipt facilities, operational storage and pipeline interconnections. The estimated total gross cost for the project is approximately $220 million. Detailed engineering work is currently underway and Keyera is targeting completion in the first quarter of 2016.
"We are pleased to be proceeding with this expansion at KFS," said David Smith, President and Chief Operating Officer of Keyera. "This project will enhance our integrated service offering in the Fort Saskatchewan area, allowing our customers to turn their NGL production into cash flow."
Long-term agreements provide commercial support for the project and Keyera is currently in negotiations with other producers for the remaining capacity.
The new fractionator will be capable of handling a C3+ mix stream of NGLs (a mixture of propane, butane and condensate). This incremental C3+ mix fractionation capacity is in addition to the de-ethanizer project currently under construction at KFS, which will allow Keyera to fractionate approximately 30,000 barrels per day of a C2+ mix stream (a mixture of ethane, propane, butane and condensate). Both of these expansions will provide NGL producers with additional fractionation infrastructure necessary to develop the significant liquids-rich natural gas reserves in western Canada
About Keyera Corp.
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 natural gas liquids (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 management's current expectations and assumptions relating to Keyera's business, the environment in which it operates, anticipated timing and closing of the acquisitions and the future operations and performance of the assets. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: satisfying the conditions in the agreements associated with the project; securing required pipeline interconnections; obtaining all necessary governmental approvals for the project, including the pipeline connections and associated facilities; securing contractual commitments for the available capacity; future operating results of the assets; Keyera's ability to execute its strategic initiatives; decisions and actions of the co-owners of KFS; construction and input costs; weather conditions; construction scheduling variables; 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; potential delays or changes in plans with respect to development projects or capital expenditures or the results therefrom; 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 they will have the expected consequences for or effects on Keyera.
SOURCE: Keyera Corp.
For further information:
For further information about Keyera, please visit our website at www.keyera.com or contact:
John Cobb, Vice President, Investor Relations and Information Technology, or
Julie Puddell, Manager, Investor Relations
E-mail: [email protected], Telephone: (403) 205-7670 / Toll Free: (888) 699-4853