Keyera Corp. has let an engineering services contract to Jacobs Engineering Group Inc. for a liquids handling and gas processing facility as part of the Wapiti development project south of Grand Prairie, Alta.
Sanctioned by Keyera last month, the project will serve Montney producers (OGJ Online, Oct. 12, 2016). Phase 1 includes a 150-MMcfd sour gas processing plant with acid gas injection capabilities and 25,000 b/d of condensate processing facilities, as well as a gathering pipeline system and field compressor stations.
Phase 1 is estimated at $470 million as it includes the buildout of certain infrastructure sufficient to support both phases. Phase 2 would add an additional 150 MMcfd of sour gas processing capacity and extend the gathering system at an incremental cost of $155 million.
Based on the proposed construction schedule, operations are targeted to start up in mid-2019. Keyera also is examining the possibility of connecting the new complex to its existing Montney asset base and network.
“This project, along with our Wapiti pipeline and Simonette gas plant, increases our presence in one of the most exciting developments in the Western Canada Sedimentary Basin,” said Bradley Lock, Keyera’s senior vice-president of gathering and processing, following the project’s sanction last month.