Canadian Manufacturing

Keyera to build $110-million natural gas separation plant

New facility will process natural gas liquids for petrochemical producers in Alberta and Keyera's own facilities.



CALGARY—Keyera Corp. will invest $110 million to build a 30,000-barrel-per-day deethanizer at its natural gas liquids (NGL) fractionation and storage facility in Fort Saskatchewan, Alta.

The de-ethanizer will process an ethane-rich stream of NGLs (referred to as C2+ mix), creating pure “specification” ethane for petrochemical producers in Alberta and a propane-rich stream of NGLs for Keyera’s fractionation facilities.

Keyera is targeting completion for the first half of 2014.

The firm has signed a long-term fee-for-service agreement with an unnamed large producer in the deep basin of west central Alberta which will send C2+ mix to Keyera for processing into ethane, propane, butane and condensate.

Keyera is currently in discussions with other producers interested in contracting for the remaining de-ethanization capacity.

“This project is another example of our ability to utilize existing facilities and operational expertise to capture new complementary business opportunities,” said Jim Bertram, CEO of Keyera.

Detailed engineering work is currently underway and certain long-lead items have already been ordered. In addition to the de-ethanizer tower and ancillary equipment, Keyera will dedicate an underground storage cavern to C2+ service, construct connections to C2+ receipt pipelines in the area and build an ethane delivery connection to the Alberta Ethane Gathering System pipeline network.

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