KeySpan Energy Canada said it has started building a 52-mile gas pipeline in the Pembina area of Alberta to deliver gas to its Brazeau River gas plant. Current production in the area is severely restricted due to the lack of sour gas processing capacity. The pipeline, known as the Brazeau Northeast Gas Gathering System, is expected to be operational in August. The pipeline routing has been chosen to follow the development of the highly prospective Pembina Nisku edge bank play. It will be a combination of 6- and 8-inch diameter pipe with a maximum capacity of 28 MMcf/d and has been designed to transport sour gas containing up to 25% hydrogen sulphide. Gross capital expenditures will be $18.4 million. The KeySpan Brazeau River gas plant currently has sufficient capacity to process the full capacity of the pipeline.

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