Keyera signs natgas handling agreements, investments at its Simonette gas plant

CALGARY — Keyera Corp. announced that it has entered into 10-yr gas handling agreements with Athabasca Oil Corporation (AOC) and Murphy Oil Company Ltd. to process natural gas production from their Montney and Duvernay operations west of Fox Creek, Alberta. Both gas handling agreements include take-or-pay commitments and facility dedications.

Photo courtesy of Keyera Corp.

In support of these agreements, Keyera plans to enhance its Simonette gas plant operations with improved inlet liquids handling facilities and acid gas injection facilities. The investments are expected to cost between $85 MM and $100 MM and be operational in the first half of 2019, assuming regulatory approvals are received on a timely basis and the current construction schedule is maintained. As a result of this project, Keyera now expects to invest growth capital of between $800 MM and $900 MM in 2018.

To meet growing volume commitments and support additional production in the region, Keyera is also considering an expansion of the processing capacity of its Simonette gas plant. Keyera continues to have discussions with existing and new producers to understand their area development plans in order to finalize the timing and size of an expansion. 

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