Keyera Facilities Income Fund announced Wednesday that it is proceeding with construction of the Carlos pipeline south west from the Keyera Rimbey gas plant into the Hoadley region of central Alberta. The pipeline will allow producers in the area to deliver liquids-rich gas to the Rimbey plant, which is equipped to remove a high percentage of natural gas liquids ("NGLs") from the gas stream. The Hoadley area is undergoing active development, as multiple producers target liquids-rich natural gas reserves found in the Glauconite geological zone.
The 45-kilometer, 12-inch raw gas gathering pipeline is expected to be in service in the second quarter of 2011 and has already received all regulatory approvals. Total cost is estimated to be $30 million. To support this project, Keyera has secured a long-term, fee-for-service transportation and processing agreement with Bonavista Energy Trust, a major producer in the area.
"We are extremely pleased to work with our customers and extend our pipeline infrastructure into highly prospective regions like the Hoadley area", said Jim Bertram, President and CEO of Keyera. "With the construction of the Carlos pipeline project, we will be able to deliver NGL rich production in the area to our Rimbey plant, which is one of the most flexible and efficient gas processing plants in Canada. The Rimbey plant is able to extract a "deep cut" of NGLs, fractionate them into specification ethane, propane, butane and condensate, and deliver these products directly into the Edmonton/Fort Saskatchewan NGL energy hub. These services allow us to assist our customers in maximizing their production netbacks."
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