Keyera Corp. is proceeding with the second phase of its Wapiti natural gas processing plant in Alberta, a project expected to cost about C$150 million.
The second phase involves the addition of 150 MMcf/d of sour gas processing, with construction scheduled for completion in mid-2020, according to a May 29 news release. The Wapiti plant is under construction near Grande Prairie, Alberta, serving the Montney shale region of northwestern Alberta.
Keyera also plans to expand the Wapiti gathering system and the North Wapiti pipeline system by installing additional compression to both systems. The Wapiti expansion is expected to cost about C$85 million, while the North Wapiti expansion is estimated to cost about C$40 million.
The expansions would allow increased volumes to the Wapiti plant, as well as meet volume commitments of two primary customers using the systems. The Wapiti system expansion is underpinned by the customer Paramount Resources Ltd., which has an initial volume commitment on the first phase of the Wapiti plant. The private oil and gas producer Pipestone Oil Corp. is supporting the expansion on the North Wapiti system.
