I'm guessing this is the same plant.
Keyera Corp. announced on May 16, 2016 that it has entered into an agreement with an unnamed company to construct a $600 mm natural gas gathering and processing facility in the Wapiti area near Grande Prairie, AB. FirstEnergy released a research note on the project this week – here is what analyst Steven Paget and associate Nate Heywood had to say.
FirstEnergy believes the project owner to be Apache Canada Ltd., a subsidiary of Apache Corporation.
The complex is expected to be capable of processing 300 mmcf/d of sour gas and 25 mbbl/d of field condensate. Keyera has agreed to acquire the main project site, all third party engineering work, and a successfully tested acid gas injection well for ~$19 mm.
Front-end engineering and design and a project cost analysis will be completed by Keyera over the next few months.
The project will be divided into two 150 mmcf/d phases, with the first phase expected to be in service by mid-2019.
Pending final sanctions, the complex is expected to include a sour gas processing plant with acid gas injection capabilities, condensate processing facilities, and associated gathering systems and infrastructure.
Keyera can potentially connect the new complex to its existing Montney network, further diversifying its service offering in the region.
The agreements incorporate an area dedication and a take-or-pay commitment under a long-term gas handling agreement. Keyera is also shopping unclaimed capacity to other producers in the area to commit additional volumes.
The project acquisition and agreement for development will enable Keyera to grow its footprint in the Montney region. The new facility should complement the company’s existing asset base in the area, especially if connective infrastructure is established.
Keyera believes that the Montney has the potential to underpin west coast LNG projects; establishing processing capacity in the area could position it to supply future tidewater projects.
This project is similar to the previously announced acquisition by Pembina Pipeline Corp. of the 250 mmcf/d Kakwa sour natural gas processing plant for $556 mm from Paramount Resources.
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