Keyera buys 35 per cent stake in Alder Flats gas plant from Bellatrix for $112.5M
First phase of facility came online last year; second phase expected to be complete by 2018
CALGARY—Canadian oil and gas firm Keyera Corp. has bought a further stake in the O’Chiese Nees-Ohpawganu’ck deep-cut gas plant at Alder Flats, Alta. from developer Bellatrix Exploration Ltd.
The Calgary-based company said it will pay $112.5 million for a 35 per cent interest in the project, raising its ownership stake in the facility to 70 per cent.
“With strong geology supporting producer activity in the area, the Alder Flats Plant is expected to remain a core gathering and processing asset for Keyera and a cost-effective, networked processing solution for area producers over the long term,” David Smith, Keyera’s president and CEO, said.
The central Alberta plant, which has a design capacity of 230 million cubic feet per day is currently under development. The first phase of the project was commissioned last May, while phase two is expected to come online in the first half of 2018.
The deal remains subject to customary closing conditions.
Following the deal, Bellatrix will continue to operate the plant, as well as hold a 25 per cent stake in the project.