Keyera's volumes rise despite gas constraints

OREANDA-NEWS. November 06, 2015. Calgary-based Keyera said it continues to see sales gas restrictions at certain processing plants because of TransCanada's system constraints.

The restrictions, which impact Keyera's Strachan, Brazeau River, and Minnehik Buck Lake gas plants in western Canada, may be reduced in the fourth quarter.

"The continued low commodity price environment has resulted in a slower pace of drilling and development in western Canada compared to last year," the company said. "However, producers are continuing to develop resource plays around several of Keyera's core facilities such as the Rimbey, Strachan, Brazeau River, Simonette and Minnehik Buck Lake gas plants."

These gas plants saw a 3pc increase in processing throughput between the second and third quarters, Keyera said.

Keyera processed 123,000 b/d of NGLs in the third quarter, up 13pc from year-ago levels, as the midstream operator completed several infrastructure projects, including its 400mn cf/d turbo expander at its Rimbey gas plant and its new 54mn cf/d Zeta Creek gas plant.

The company placed its 13th NGL storage cavern into service in October and continues to wash its 14th and 15th caverns. Its 35,000 b/d fractionation expansion at Fort Saskatchewan is underway, with all of the major equipment on site.

Keyera will acquire a 50pc stake in TransCanada's planned Grand Rapids condensate pipeline, which will carry 225,000 b/d of diluent between Edmonton and Fort Saskatchewan.

In 2016 Keyera will spend \\$600mn-800mn on new NGL infrastructure, including expanded fractionation capacity at its Fort Saskatchewan complex, the Norlite pipeline, and storage.