Keyera Corp. is proceeding with Phase 2 of its Wapiti natural gas gathering and processing project south of Grand Prairie, Alta.
Phase 2 of the Wapiti gas plant will add another 150 MMcfd of sour gas processing to the 150-MMcfd Phase 1 of the plant currently under construction, Keyera said.
At an estimated cost of about $150 million, Phase 2 of the Wapiti plant is scheduled to be completed in mid-2020, the operator said.
Alongside construction of Phase 2, Keyera said it also is expanding the Wapiti gathering system and the North Wapiti pipeline system—the two gathering systems that will deliver natural gas volumes to the Wapiti plant—by adding additional compression to each system.
The expansion of the Wapiti gathering system is supported by Paramount Resources Ltd.’s initial volume commitment on Phase 1 of the Wapiti gas plant, while the expansion on the North Wapiti Pipeline System is supported by incremental volume commitments from Pipestone Oil Corp.
Further capital investments in the Wapiti plant’s gathering systems are covered under existing agreements with Paramount and Pipestone, both of which include take-or-pay commitments, Keyera said.
Additional compression on the Wapiti gathering system is estimated to cost about $85 million with a target completion date in mid-2020. Including this compression expansion, the total cost of both phases of the Wapiti gas plant is estimated at about $705 million, the operator said.
Keyera said it expects additional compression on the North Wapiti pipeline system to add about $40 million to the cost of that project, bringing its total to $160 million.
Assuming timely receipt of all regulatory approvals and permits, the North Wapiti pipeline system is scheduled to be completed during second-half 2019.
First approved in May 2017, the Wapiti gas project is designed to serve producers in the liquids-rich Montney regions of northwestern Alberta (OGJ Online, June 14, 2017).
Contact Robert Brelsford at [email protected].