GRANDE PRAIRIE, A.B. – Keyera Corp. will move forward with phase one of a new $470 million sour gas processing plant near Grande Prairie.
The first phase of the project includes a 150 million cubic feet per day sour gas processing plant with acid gas injection capabilities and 25,000 barrels per day of condensate processing facilities, as well as a gathering pipeline system and field compressor stations.
With this decision, Keyera now expects to invest growth capital of between $800 million and $900 million in 2017.
The company has also started negotiating with several other producers to add more volumes to determine if they can move forward with phase two of the facility. Phase two would add an additional 150 million cubic feet per day of sour gas processing capacity and extend the gathering system at an incremental cost of approximately $155 million. The total cost of the two-phased Project is expected to be approximately $625 million.
“Keyera is very pleased to have reached an agreement with its primary customer to begin constructing phase one of this Project in the liquids-rich Montney,” said Bradley Lock, Keyera’s Senior Vice President of Gathering and Processing. “This Project, along with our Wapiti pipeline and Simonette gas plant, increases our presence in one of the most exciting developments in the Western Canada Sedimentary Basin. We look forward to working with area producers and stakeholders to develop this infrastructure in an environmentally and financially responsible manner.”
Construction of phase one is expected to be completed in 2019.