Keyera Facilities Income Fund is expanding its gas processing capability in west central Alberta. Keyera will invest $65 million to buy interests in two additional gas plants and increase interests in four of its existing gas plants.
After the deals, Keyera will have interests in 17 gas plants and will increase its net gas processing capacity by 9%, or 151 MMcfd. All of the incremental capacity can extract NGLs and handle sour gas.
Keyera will acquire a 57% interest in the Minnehik Buck Lake gas plant and a 20% interest in the Edson gas plant. It also is buying various interests in the Keyera-operated West Pembina (WP), Nordegg River, Gilby, and Brazeau River gas plants. Interest in about 260 km of gathering pipelines and nine compressor stations also is part of the deals, as is 12 bcf of proved plus probable gas reserves and 711,000 bbl of NGL reserves. Current production is 4 MMcfd of gas and 350 b/d of NGLs.
The 100 MMcfd Minnehik Buck Lake (MBL) plant lies between Keyera's Rimbey and Bigoray gas plants, in an area with significant geological prospectivity. As the largest owner in the MBL plant (57%), Keyera plans to submit a proposal to the plant's operating committee to become operator of the plant. The Edson gas plant extends Keyera's reach northwest in the foothills region, into an area the company says has relatively under developed lands and attractive geology.
Asset details
The MBL plant can process sweet and sour gas and extract NGLs. Current throughput is about 50 MMcfd. Keyera also acquired a 60% interest in the plant's inlet compressor, nine compressor stations, and 260 km of sweet and sour gathering lines, a 57% ownership interest in the MBL Gas Unit No. 1, and a 100% ownership interest in certain nonunit wells, which deliver production to the plant.
Talisman Energy Inc. operates the Edson gas plant. It has a license capacity of 375 MMcfd and can process sweet and sour gas and extract NGLs. Current throughput is 215 MMcfd.
Keyera also acquired an additional 7% in its WP plant, bringing ownership to 76%, a 20% interest in a field compressor, and an additional 8% interest in the Keyera WP sulfur blocking facility, a 100% interest in 125,000 tonnes of sulfur inventory at the WP plant, and a 29% interest in the Nisku S Pool and an 11% interest in the Nisku W Pool, both of which deliver production to the WP plant.
Keyera similarly acquired an additional 7% interest in its Nordegg River gas plant, bringing ownership to 89%, and an additional 11% interest in the Nordegg River gas plant inlet compression, bringing ownership to 83%.
Keyera boosted its interest in various components of the Gilby gas plant by 1.7%, bringing its share to 79% and acquired an additional 1% interest in its Brazeau River gas plant, bringing ownership to 92%.
More Oil & Gas Journal Current Issue Articles
More Oil & Gas Journal Archives Issue Articles
View Oil and Gas Articles on PennEnergy.com
