Page 8 - NorthAmOil Week 08 2023

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

Keyera to start up new Western

Canadian condensate pipeline

WESTERN CANADIAN midstream player Keyera is in the condensate to new markets.
CANADA process of starting up a new natural gas liquids In response to growing demand from pro-
(NGL) and condensate pipeline. Line-filling is ducers for additional NGL and condensate frac-
currently underway, Keyera’s CEO, Dean Seto- tionation and processing capabilities, in January
guchi, said in mid-February on the company’s 2023 Keyera sanctioned an expansion of its Pipe-
earnings call. stone gas plant in Alberta, Setoguchi said.
The project, which is called the Key Access The expansion – for which regulatory
Pipeline System (KAPS), is 99% complete and is approval is anticipated in March – will increase
estimated to have cost CAD1bn ($739mn), he capacity of the plant to 260mn cubic feet (7.4mn
said. cubic metres) per day from 220 mmcf (6.2 mcm)
The new infrastructure will unlock invest- per day. Setoguchi noted that the new capacity
ment and production in the Western Canadian was underpinned by long-term take-or-pay The KAPS will
Sedimentary Basin (WCSB), as well as providing deals and was due to be completed in the first
a link to Keyera’s processing and fractionation quarter of 2024. be connected
facilities in the Fort Saskatchewan area and in This is the second time in recent months that
Alberta’s industrial heartland, Setoguchi said. Keyera has increased capacity of its Pipestone to Keyera’s gas
With KAPS in full service, Keyera can now plant, with the company announcing in Novem-
provide Montney producers in the WCSB with ber that in the third quarter of 2021 it had added processing plants
a competitive alternative for NGLs and conden- 20 mmcf (566,400 cubic metres) per day through at Pipestone,
sate processing, transportation, fractionation, a relicensing process.
storage and product marketing, he added. Higher prices and anticipated growth in Wapiti and
The 360-mile (560-km) pipeline, plans for demand for global LNG have resulted in WCSB
which were unveiled in mid-2019, is designed to producers investing in new drilling activity in Simonette.
handle 130,000 barrels per day (bpd) of conden- the basin’s Montney and Duvernay plays. In
sate and 2.25bn cubic feet (63.7mn cubic metres) particular, their focus is on the liquids-rich gas
per day of natural gas processing in the WCSB. resources that will result in additional volumes
It is being developed by Keyera and SemCams of NGLs and condensate being produced in the
Midstream under a 50:50 joint venture that is basin over the coming few years.
anchored by multiple long-term agreements The planned start-up of the LNG Canada
averaging 14 years. facility’s first train in late 2025 in neighbouring
The KAPS will be connected to Key- British Columbia will spur demand for addi-
era’s gas processing plants at Pipestone, tional natural gas drilling, said Ian Archer, a Cal-
Wapiti and Simonette, providing produc- gary-based gas analyst with IHS Markit, which is
ers with options to deliver their NGLs and now part of S&P Global Commodity Insights.™

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