Keyera, Plains explore Deep basin Alberta NGL pipeline

Keyera Corp. and Plains Midstream Canada ULC, a wholly owned subsidiary of Plains All American Pipeline LP, are soliciting interest in construction of a jointly owned NGL system in northwest Alberta. The proposed Western Reach Pipeline System would extend from the Gordondale area of northwestern Alberta to the NGL hub in Fort Saskatchewan. Keyera and Plains have begun an open season process seeking nonbinding nominations for volumes to underpin construction.

Keyera and Plains expect Western Reach to consist of two newbuild pipelines, one dedicated to a mixture of propane, butane, and condensate (NGL mix) and the other to segregated condensate service. The 570-km Western Reach system will traverse the Deep basin, including the Montney and Duvernay zones.

Keyera and Plains believe that separate dedicated pipelines for NGL mix and segregated condensate will benefit customers, avoiding the costs associated with pipelines operating a single line in batch mode.

The open season closes May 15.

The Edmonton-Fort Saskatchewan area is home to the majority of Canada’s NGL fractionation for subsequent delivery to end-use customers. Both Keyera and Plains have NGL fractionation, storage, pipeline, and terminal facilities in the area. Keyera’s Fort Saskatchewan fractionation and storage recovers 13,200 b/d C3, 9,600 b/d C4, and 7,200 b/d C5+ (out of a company total of 80,000 b/d) and has 11 on-site storage caverns.

Keyera operates the Fort Saskatchewan Condensate System of interconnected condensate pipeline, terminalling, and storage. The system supplies Imperial Oil’s Kearl oil sands project and Keyera has service agreements in place with Husky Oil for the Sunrise oil sands project scheduled to begin in 2014.

Plains operates a network of pipelines with connectivity to ship NGL to its eastern assets, including Sarnia, Ont., fractionation and storage, Windsor and St. Clair storage, and the Eastern Delivery Systems. Plains seven Canadian fractionation plants total about 232,000 b/d.

Keyera and Plains are both evaluating expansions of their respective NGL fractionation facilities in Fort Saskatchewan. Keyera last year announced plans to build a 30,000 b/d de-ethanizer at Fort Saskatchewan by first-half 2014 (OGJ Online, Sept. 11, 2012).

Contact Christopher E. Smith at chriss@ogjonline.com.

Related Articles

An arbitrage bubble

09/22/2014 That a US ban on the export of crude oil receives support from refiners who profit from it makes perfect sense. Arguments for keeping the ban in pl...

Senators offer bill to reform energy project crossborder permitting

09/22/2014 Four US senators-2 Democrats and 2 Republicans-introduced legislation to prevent extended delays of energy projects requiring a crossborder permit ...

It's clearly time to end US crude export ban, Summers declares

09/22/2014 Lawrence H. Summers, who was US Treasury Secretary during Bill Clinton's presidency and was President Barack Obama's National Economic Council Dire...

API official calls for end to nearly 6-year Keystone XL permit delay

09/22/2014 Three days before the sixth anniversary of TransCanada Corp.'s original filing for presidential approval of the proposed Keystone XL crude oil pipe...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected