Keyera to boost stake in Alberta gas plant

Keyera Corp., Calgary, has entered an agreement to double its ownership interest in the O’Chiese Nees-Ohpawganu’ck deep-cut natural gas processing plant and related pipelines in the Alder Flats in west-central Alberta (OGJ Online, Dec. 2, 2014).

Keyera will acquire an additional 35% ownership interest in the gas plant and associated pipelines from partner Bellatrix Exploration Ltd., also of Calgary, for a total of $112.5 million, as well as prepayment of 35% of estimated future construction costs for a second phase of the plant now under construction, Keyera said.

As part of the transaction, Bellatrix and Keyera also will enter into a midstream services and governance agreement under which Bellatrix will have exclusive access to the purchased capacity—about 80.5 MMcfd post-commissioning of Phase 2—for a term of 10 years, Bellatrix said.

Upon closing, Keyera will own 70% of the operations, with Bellatrix to continue on as acting operator for the project.

Alongside retaining a 25% ownership interest in the project, Bellatrix additionally will have the option to reacquire a 5% interest in the gas plant at a cost of $8 million near expiry of the Alder Flats construction, ownership, and operating agreement, the operator said.

The companies said they expect to complete the transaction in August.

On stream in mid-2015, Phase 1 of the gas plant has a design inlet capacity of 110 MMcfd.

Phase 2 will add a design inlet capacity of 120 MMcfd with a targeted on stream date during first-half 2018, according to the companies.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...