Keyera Corp., Calgary, has closed on its previously announced deal to acquire additional ownership interest from partner Bellatrix Exploration Ltd., also of Calgary, in the O’Chiese Nees-Ohpawganu’ck (Alder Flats) deep-cut natural gas processing plant and related pipelines in west-central Alberta (OGJ Online, July 8, 2016).
Finalized on Aug. 9, the transaction includes Keyera’s acquisition of an additional 35% interest in the gas plant and associated pipelines from Bellatrix for a total cash payment of $112.5 million, as well as prepayment of 35% of future construction costs for a second phase of the plant Bellatrix currently is building, said Keyera.
As part of deal, the companies also have entered 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.
With its purchase completed, Keyera now holds 70% ownership interest in the Alder Flats project.
Alongside retaining a 25% ownership interest and continuing on as acting operator, Bellatrix also maintains an 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.
Due to be on stream during first-half 2018, Phase 2 will add a design inlet capacity of 120 MMcfd to the project’s Phase-1 capacity of 110 MMcfd, which came on stream in mid-2015.
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