Keyera Corporation is moving forward with the first phase of a new natural gas gathering and processing complex south of Grande Prairie. $470 million will be invested into a sour gas processing plant with a 150 million cubic feet per day capacity and acid gas injection capabilities.
The first part of the Wapiti complex will also include 25,000 barrels per day of condensate processing facilities, a gathering pipeline system and field compressor stations. Start up is expected mid-2019.
The second phase would add another 150 million cubic feet per day capacity and extend the gathering system. Its cost is estimated at $155 million, meaning the total project would cost $625 million.
However, Keyera says it wants to talk to other producers in the region to get more volume first, and additional gathering systems may need to be built. It’s expected the second phase will be up and running in 2021.
“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,” says Bradley Lock 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.”
This decision was anticipated for the first quarter of 2017, but dedication agreements and long-term “take-or-pay” commitments needed to be finalized. Keyera’s main buyer has not been named.