Keyera commissions Pipestone gas plant

Oct. 13, 2020
Keyera Corp., Calgary, has started up its Pipestone natural gas processing and liquids stabilization plant located west of Grande Prairie, Alta.

Keyera Corp., Calgary, has started up its Pipestone natural gas processing and liquids stabilization plant located west of Grande Prairie, Alta.

Developed in joint effort with Ovintiv Inc. (formerly Encana Corp.) to support its condensate-focused Pipestone Montney development, the 200-MMcfd Pipestone gas plant—which also features 24,000-b/d of condensate processing and associated water-disposal installations—entered operation 5 months ahead of its original schedule and at budgeted costs on Oct. 13, Keyera said.

"This project aligns with Keyera's strategy of building a stronger presence in the liquids-rich Montney development, which is one of the most economic developments in the Western Canada Sedimentary Basin," said David Smith, Keyera's chief executive officer.

With commissioning of the Pipestone plant, and including its existing Wapiti and Simonette gas plants, Keyera now has infrastructure in the area providing 950 MMcfd of gas processing capacity and 90,000 b/d of condensate processing capacity.

“In the future, this [processing] capacity will be connected to our [Key Access Pipeline System (KAPS)] natural gas liquids and condensate pipeline that we expect to have in service in 2023,” Smith said.

Keyera along with its partner, SemCAMS Midstream ULC, previously agreed to defer construction of the KAPS for 1 year, with all transportation agreements amended to align with the deferral (OGJ Online, May 13, 2020).

Designed to transport NGL from the Montney shale to Keyera’s liquids infrastructure in Fort Saskatchewan, Alta., KAPS will consist of a 16-in. OD pipeline for condensate and a 12-in. OD pipeline for NGL mix. The system will run from northwest of Grande Prairie to Keyera's Fort Saskatchewan fractionation and storage site. KAPS will initially be connected to Keyera's Pipestone, Wapiti, and Simonette gas plants and several third-party gas plants with volume commitments to KAPS. Shippers will also have direct access to Keyera's condensate hub.