Keyera Corp. entered into a 20-year agreement with Chevron Canada Ltd. to process and store NGLs from Chevron's Kaybob Duvernay operations near Fox Creek, Alberta.
An area of dedication above 230,000 gross operated acres is included in the agreement, along with take-or-pay commitments, according to an Oct. 10 news release. Under the agreement, Chevron would deliver about 50% of its NGLs from the area of dedication to Keyera, which would provide fractionation, storage and terminaling services through the facilities at its Fort Saskatchewan energy complex on a fee-for-service basis.
During the agreement's term, Chevron may also request that Keyera provide these services through individual long-term service agreements. Keyera may also expand its facilities depending on the success and scale of Chevron's Duvernay program, the company said.
"With Chevron being one of the largest lease holders in the Duvernay resource play, the agreement represents an exciting opportunity for Keyera," said Dean Setoguchi, senior vice president of Keyera's liquids business unit.
Chevron Canada is a subsidiary of Chevron Corp.