Keyera Corp. entered into a long-term, fee-for-service agreement to provide sulfur handling and forming services at its Strachan gas plant to Suncor Energy Inc. The agreement underpins planned modifications to sulfur receipt and forming facilities at the Strachan gas plant, including replacement of the existing sulfur forming facility with a new 1,500 tonne/day sulfur forming and degassing unit.
This new forming unit will use patented technology developed by Brimrock Group Inc., delivering what Keyera described as more efficient conversion of molten sulfur into solid, premium sulfur granules. Keyera will also expand its molten sulfur rail off-loading capacity and add incremental degassing and storage capacity to the site.
Suncor will bring sulfur to the Strachan plant from the Fort McMurray area. Keyera expects volumes delivered under the agreement to use more than half of the sulfur forming capacity at Strachan, with the balance available to support the plant’s sour gas processing operations and to provide sulfur handling and forming services for other potential customers.
The Suncor agreement has a 10-year term and services are provided on a take-or-pay basis. Keyera estimates the cost of the modifications to the sulfur facilities at $40 million, with operations expected to begin first-half 2015.
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