Canada-based Keyera Corp. plans to construct a 30,000 bpd de-ethanizer at its NGL fractionation and storage facility in Fort Saskatchewan, Alberta, the company said on Monday.
The de-ethanizer will allow Keyera to process an ethane-rich stream of NGLs, creating specification ethane for delivery to petrochemical producers in Alberta and a propane-rich stream of NGLs for delivery into Keyeras fractionation facilities, according to the company.
The estimated total gross cost for the project, including the receipt facilities, C2+ mix storage and pipeline interconnections, is approximately $110 million.
Keyera is targeting completion for the first half of 2014.
The company said it has entered into a long-term, fee-for-service agreement with a large producer in the deep basin of west central Alberta, providing commercial support for the project.
Under the terms of the agreement, the producer will furnish C2+ mix to Keyera for processing into specification products, including ethane, propane, butane and condensate.
Keyera says it is currently in discussions with other producers interested in contracting for the remaining de-ethanization capacity.
This project is another example of our ability to utilize existing facilities and operational expertise to capture new complementary business opportunities," said Jim Bertram, CEO of Keyera.
We are providing the benefit of incremental de-ethanization capacity for our customers along with the optionality to sell ethane to any buyer on the Alberta ethane gathering system (AEGS).
This investment broadens Keyera's service offering to producers and allows Keyera to better compete for an increasing supply of NGLs in western Canada.
Detailed engineering work is currently underway and certain long-lead items have already been ordered, according to the company.
In addition to the de-ethanizer tower and ancillary equipment, Keyera says it will dedicate an underground storage cavern to C2+ service, construct connections to C2+ receipt pipelines in the area and build an ethane delivery connection to AEGS.