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
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
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
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
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
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