Canada-based Keyera has announced to begin work on two projects together, worth $210m, related to its Simonette gas plant located in Alberta and provide its customers with improved gas processing services.
As part of its first project, the company will build a sour gas gathering pipeline to the Simonette gas processing plant called Wapiti pipeline.
The 90km and 12in pipeline and new inlet facilities at the plant will be constructed at an estimated cost of $120m from the Wapiti region of northwest Alberta to Simonette.
The pipeline is expected to support the increased drilling in the Wapiti region. The Wapiti pipeline project is supported by a long-term, fee-for-service natural gas gathering and processing agreement with NuVista Energy.
The pipeline is expected to begin operations in 2014.
Under the second project, Keyera will modify the Simonette gas plant to improve the processing capacity of the facility and help the producers in the region.
The plant is being modified to handle the growing quantities of NGLs and condensate being produced in the area.
Modifications at the plant will handle an additional 100 million cubic feet per day of raw natural gas and 5,000 barrels per day of condensate.
The total cost is anticipated to be around $90m and work is expected to be complete in the second half of 2014.