Keyera Corp. has announced it plans to construct the North Wapiti Pipeline System, providing critical infrastructure and services to producers developing the Montney Shale north of the Wapiti River. The project extends the capture area of Keyera’s recently approved Wapiti Gas Gathering and Processing Complex (Wapiti Gas Plant) and includes a 12-inch sour gas gathering pipeline, an 8-inch condensate and water pipeline, and a compressor station.
The North Wapiti Pipeline System is underpinned by a long-term, take-or-pay natural gas gathering and processing agreement with privately owned Pipestone Oil Corp. Pipestone has also entered into a separate long-term agreement with Keyera to secure fractionation and marketing services for its natural gas liquids extracted at the Wapiti Gas Plant, which is currently under construction.
The project is currently estimated to cost approximately $120 million with an expected in-service date in the second half of 2019, pending the final routing and timely receipt of all regulatory approvals and permits. Keyera looks forward to working with customers and other stakeholders to develop the required infrastructure in an environmentally and financially responsible manner.
“We are excited to extend the capture area of our Wapiti Gas Plant to lands north of the Wapiti River to meet the needs of producers in the Pipestone development area of the Montney,” said Bradley Lock, Keyera’s Senior Vice President of Gathering and Processing. “This Pipeline System not only enhances our midstream services in one of the most exciting areas in the Western Canada Sedimentary Basin, but these contracted volumes also provide the foundation for Keyera to sanction the second phase of our Wapiti Gas Plant in the future. The second phase will add an additional 150 million cubic feet per day of processing capacity to align with producers’ development plans.”