Keyera Corp. has plans to construct the North Wapiti Pipeline System (The Pipeline System), providing critical infrastructure and services to producers developing the Montney north of the Wapiti River.
The Pipeline System extends the capture area of Keyera’s recently approved Wapiti Gas Gathering and Processing Complex pipeline, and a compressor station.
The Pipeline System is underpinned by a long-term, take-or-pay natural gas gathering and processing agreement with privately owned Pipestone Oil Corp. The firm has also entered into a separate long-term agreement with Keyera to secure fractionation and marketing services for its natural gas liquids extracted at the Wapiti Gas Plant, which is currently under construction.
The Pipeline System is currently estimated to cost approximately $120 million with an expected in-service date in the second half of 2019, pending the final routing and timely receipt of all regulatory approvals and permits.
“We are excited to extend the capture area of our Wapiti Gas Plant to lands north of the Wapiti River to meet the needs of producers in the Pipestone development area of the Montney,” said Bradley Lock, Keyera’s senior vice president of Gathering and Processing. “This Pipeline System not only enhances our midstream services in one of the most exciting areas in the Western Canada Sedimentary Basin, but these contracted volumes also provide the foundation for Keyera to sanction the second phase of our Wapiti Gas Plant in the future. The second phase will add an additional 150 million cubic feet per day of processing capacity to align with producers’ development plans.”
Keyera Corp. operates one of the largest midstream energy companies in Canada, providing essential services to oil and gas producers in the Western Canada Sedimentary Basin. Its predominantly fee-for-service based business consists of natural gas gathering and processing, natural gas liquids processing, transportation, storage, marketing, iso-octane production and sales.
