Keyera, Encana in Montney Project
Canada’s Keyera, a major mid-stream service company, said April 2 it has partnered with gas producer Encana in a 20-year infrastructure development and midstream service agreement to support Encana’s condensate-focused Pipestone Montney development in Alberta.
Keyera and Encana will develop a liquids hub and a natural gas processing and liquids stabilisation plant, with Keyera purchasing the project from Encana for $39mn and providing processing services to Encana under a long-term fee-for-service arrangement with a modest revenue guarantee.
Encana will be responsible for the design and construction of the project and will initially operate the facilities. Keyera will be responsible for all commercial development and has the option to assume operatorship of the project five years after the start up of the natural gas processing and liquids stabilisation plant.
The $105mn Pipestone liquids hub is currently under construction and will include a total of 14,000 b/day of condensate processing capacity. It is expected in-service in Q4 2018.
The Pipestone processing and liquids stabilisation plant, at an estimated cost of between $500mn and $600mn, will include a total of 200mn ft3/day of sour gas processing capacity with acid gas injection capabilities, 24,000 b/day of condensate processing capacity and associated water disposal facilities. It is expected to be in service in 2021.
The plant will be designed to accommodate a future capacity expansion of another 200mn ft3/day, which would allow Keyera to process gas from other producers in the area. Discussions with producers for second phase capacity commitments are expected to begin soon, Keyera said.