Keyera to Enhance NGL Fractionation Capacity in Saskatchewan

Share Print Bookmark    |    Thursday,January 09,2014

Keyera Corp. has announced that it is proceeding with an expansion at its NGL fractionation and storage facility in Fort Saskatchewan.

The project will involve more than doubling the facility’s existing C3+ fractionation capacity from 30,000 barrels per day to 65,000 barrels per day.

In conjunction with the fractionator, the project will include the construction of new product receipt facilities, operational storage and pipeline interconnections. The estimated total gross cost for the project is approximately $220 million. Detailed engineering work is currently underway and Keyera is targeting completion in the first quarter of 2016.

David Smith, President and Chief Operating Officer of Keyera, said:  "We are pleased to be proceeding with this expansion at KFS.

This project will enhance our integrated service offering in the Fort Saskatchewan area, allowing our customers to turn their NGL production into cash flow."

Long-term agreements provide commercial support for the project and Keyera is currently in negotiations with other producers for the remaining capacity.

The new fractionator will be capable of handling a C3+ mix stream of NGLs (a mixture of propane, butane and condensate). This incremental C3+ mix fractionation capacity is in addition to the de-ethanizer project currently under construction at KFS, which will allow Keyera to fractionate approximately 30,000 barrels per day of a C2+ mix stream (a mixture of ethane, propane, butane and condensate). Both of these expansions will provide NGL producers with additional fractionation infrastructure necessary to develop the significant liquids-rich natural gas reserves in western Canada