Construction of the second phase, which is expected to add 150 million cubic feet per day of sour gas processing to the plant, is planned to be completed in mid-2020.

The second phase construction of the plant is estimated to cost approximately $150m.

Additionally, Keyera plans to expand two gathering systems that will deliver volumes to the Wapiti gas plant.

The firm will also add additional compression to both the Wapiti gathering system and the North Wapiti Pipeline System to meet the volume commitments made with two primary customers.

Keyera said that the additional compression is expected to cost approximately $85m with completion scheduled in mid-2020.

Keyera president and CEO David Smith said: “We are very pleased to be proceeding with these projects that continue to build Keyera’s footprint in the liquids-rich Montney regions of northwestern Alberta.

“With the volume commitments we are seeing, it is evident that producers continue to have confidence in this region as one of the most economic developments in the Western Canada Sedimentary Basin.

“We look forward to working with all stakeholders to develop the Wapiti Gas Plant and its associated gathering systems in an environmentally and financially responsible manner.”

Earlier, the expansion of the Wapiti gathering system is supported by Paramount Resources’ initial volume commitment on phase one of the Wapiti Gas Plant.

The expansion on the North Wapiti Pipeline System is backed by Pipestone Oil’s incremental volume commitments.

The first phase of the project involves 150 million cubic feet per day sour gas processing plant with acid gas injection capabilities and 25,000 barrels per day of condensate processing facilities, as well as a gathering pipeline system and field compressor stations.

In 2018, Keyera plans to invest between $1bn and $1.1bn in growth capital.