Calgary-based midstream company Keyera Corp. and Plains All American Pipeline subsidiary Plains Midstream Canada ULC have joined forces to solicit interest in the construction of a jointly-owned natural gas liquids (NGL) pipeline system in northwest Alberta.
The proposed Western Reach Pipeline System would run 570 kilometers (354 miles) from the Gordondale area of northwestern Alberta to the province’s NGL hub in Fort Saskatchewan. Two new pipelines — one dedicated to a mixture of propane, butane and condensate and the other intended for segregated condensate service — would traverse Alberta’s Deep Basin area, which contains some of the most prospective liquids-rich geological horizons being developed in western Canada, including the Montney and Duvernay zones, the companies said.
Separate pipelines dedicated to an NGL mix and segregated condensate “will benefit customers, avoiding the costs associated with pipelines operating in batch mode,” they said. “Customers on the Western Reach Pipeline will have the option to direct their NGL mix and segregated condensate to a variety of fractionation, storage, pipeline and terminal facilities at the Fort Saskatchewan energy hub.”
Both companies have significant facilities in the Edmonton/Fort Saskatchewan area. Keyera operates the Fort Saskatchewan Condensate System, consisting of extensive, interconnected condensate pipeline, terminalling and storage facilities, and Plains operates a network of pipelines with connectivity to ship NGLs to Plains’ eastern infrastructure assets, which include the Sarnia fractionation and storage facility, the Windsor and St. Clair storage facilities, and the Eastern Delivery Systems. The companies are each evaluating expansions of their NGL fractionation facilities in Fort Saskatchewan to provide additional fractionation capacity for the growing volumes of NGLs produced in western Canada.
Keyera and Plains will each have a 50% ownership interest in the Western Reach Pipeline. Plains will be responsible for constructing and operating the system, which is expected to be operational by late 2015.
Keyera and Plains have begun a nonbinding open season for volumes to underpin construction of the NGL pipeline. The deadline for submitting documents is May 15. Details can be found on either the Keyera or Plains websites.
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