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
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
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 about Keyera, please visit our website
atwww.keyera.com or contact:
John Cobb, Vice President, Investor Relations and Information Technology, or
Julie Puddell, Manager, Investor Relations E-mail:firstname.lastname@example.org, Telephone:
(403) 205-7670 / Toll Free: (888) 699-4853
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CO: Keyera Corp.
NI: OIL FIELD
-0- Jan/08/2014 12:30 GMT
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