As part of a 10-year deal, both the firms have planned for an initial capacity of 35 MMcf/d of raw natural gas production, which will commence in the second quarter of 2014, while the capacity will be increased to 65 MMcf/d in late 2014.
Under the agreement, NuVista will meet the needs of Keyera Simonette sour gas processing facilities, which will maximise plant efficiency.
Keyera plans to construct a 90km 12in diameter pipeline from a future NuVista compressor station in the South block of the Wapiti Montney lands to the existing Keyera Simonette gas plant, which will allow storage of production from the Wapiti development.
The company is also planning to build additional plant inlet facilities to store the gas and liquids production from Wapiti.
The agreement will also allow for the fractionation and marketing of the associated NuVista liquids from the Wapiti Montney.
