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.
Disclaimer
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.
