Keyera Announces Construction of Gathering Pipeline to Simonette and Plant Modifications to Increase Capacity

Keyera Announces Construction of Gathering Pipeline to Simonette and Plant 
Modifications to Increase Capacity 
CALGARY, April 8, 2013 /CNW/ - Keyera Corp. (TSX:KEY) (TSX:KEY.DB.A) 
("Keyera") announced two initiatives today to extend the capture area and to 
provide customers with enhanced processing capability at its Simonette gas 
plant ("Simonette"). The first initiative is the construction of a sour gas 
gathering pipeline, which will be called the Wapiti pipeline, from the Wapiti 
region of northwest Alberta to Simonette. The second initiative involves 
modifications to Simonette to increase plant capacity and handle the growing 
quantities of NGLs and condensate being produced in the area. The capital cost 
of these initiatives is expected to be approximately $210 million. 
The Wapiti pipeline is underpinned by a long-term, fee-for-service natural gas 
gathering and processing agreement with NuVista Energy Ltd. ("NuVista"). In 
addition, NuVista has entered into a separate long-term agreement with Keyera 
to secure NGL fractionation and marketing services for its NGLs extracted at 
the plant. 
The Wapiti pipeline consists of a 90-kilometre, 12-inch sour gas gathering 
pipeline and new inlet facilities at the plant. The total cost is estimated at 
$120 million. Construction is scheduled to begin in the fall of 2013 and the 
pipeline is expected to be in service in the second quarter of 2014, assuming 
receipt of regulatory approvals and delivery of long lead items on a timely 
basis. The Wapiti area is undergoing active drilling as producers continue to 
target the liquids-rich gas in the Montney geological zone. Keyera is in 
discussions with other producers along the pipeline route regarding the 
remaining unutilized capacity of the pipeline. Should there be sufficient 
interest, Keyera would also consider the construction of a separate 6-inch, 
90-kilometre pipeline to carry segregated condensate along the same route. 
In order to handle the growing demand for natural gas processing, Keyera will 
also be undertaking modifications at the plant to expand capacity and increase 
condensate handling capability. These modifications include the addition of 
refrigeration to increase the raw gas handling capacity and the construction 
of condensate stabilization facilities to handle growing volumes of 
condensate. These facilities will enable Simonette to handle an additional 100 
million cubic feet per day of raw natural gas and 5,000 barrels per day of 
condensate. The total cost of these modifications is anticipated to be 
approximately $90 million. Work is expected to be complete in the second half 
of 2014. 
"We are excited about this opportunity to extend the capture area and expand 
the capabilities of our Simonette gas plant to meet the needs of our 
customers," says David Smith, President and Chief Operating Officer of Keyera. 
"These initiatives will provide cost-effective enhancements to our gathering, 
processing and liquids extraction services, to support continued development 
of the Montney zone in the area." 
About Keyera Corp. 
Keyera Corp. (TSX:KEY) (TSX:KEY.DB.A) 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 the Wapiti pipeline and 
proposed related facilities, the plant modifications, Keyera's business, the 
environment in which it operates 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: Keyera's 
ability to obtain all necessary approvals and consents for the installation of 
the Wapiti pipeline, associated inlet facilities, the plant modifications and 
all associated facilities; securing the right-of-way for the Wapiti pipeline; 
fulfilment of the terms and conditions of both the gathering and processing 
agreement and the marketing agreement entered into in support of the Wapiti 
pipeline project; construction and input costs; construction scheduling 
variables; availability of construction and engineering resources; future 
operating results of the assets; Keyera's ability to execute its strategic 
initiatives; weather conditions; commodity supply/demand balances and prices; 
activities of producers, competitors, customers, business partners and others; 
demand for the services to be offered through each of the proposed projects; 
overall economic conditions; access to capital and financing alternatives; 
operational risks associated with natural gas processing and NGL extraction; 
regulatory approvals for future plant expansion opportunities; 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. 
about Keyera, please visit our website or contact: 
Investors and Media John Cobb, Vice President, Investor Relations, or Julie 
Puddell, Manager, Investor Relations Telephone: (403) 
205-7670 Toll Free: (888) 699-4853 Facsimile: (403) 205-8425 
Pipeline Business Development Inquiries David Norris, Business Development 
Representative Telephone: (403) 205-7637 
SOURCE: Keyera Corp. 
To view this news release in HTML formatting, please use the following URL: 
CO: Keyera Corp.
ST: Alberta
-0- Apr/08/2013 22:00 GMT
Press spacebar to pause and continue. Press esc to stop.