Keyera Corp. announced two initiatives 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.

Tags: Keyera Corp.