Keyera Corp., Calgary, will build a 30,000 b/d de-ethanizer at its natural gas liquids fractionation and storage location in Fort Saskatchewan, Alta.
The de-ethanizer will allow Keyera to process an ethane-rich (C2+) stream of NGLs to produce specification ethane for petrochemical producers in the province and a propane-rich stream of NGLs for Keyera’s fractionators. Estimated total cost for the project, including receipt facilities, C2+ mix storage, and pipeline interconnections, will be about $110 million (Can.). Keyera targets completion for first-half 2014.
Keyera has entered into a long-term, fee-for-service agreement with a large—but unnamed—producer in the deep basin of west central Alberta, providing commercial support for the project. Under terms of the agreement, the producer will furnish C2+ mix to Keyera for processing into specification products including ethane, propane, butane, and condensate (OGJ, July 19, 2010, p. 31).
Keyera is currently in discussions with other producers interested in contracting for the remaining de-ethanization capacity, said the company’s announcement.
Detailed engineering work is under way and certain long-lead items have already been ordered, it said. In addition to the de-ethanizer tower and ancillary equipment, Keyera 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 the Alberta Ethane Gathering System (OGJ, Apr. 7, 2012, p. 104).