The pipeline will allow producers in the area to deliver liquids-rich gas to the Rimbey plant, which is equipped to remove a high percentage of natural gas liquids from the gas stream.
The Hoadley area is undergoing active development, as multiple producers target liquids-rich natural gas reserves found in the Glauconite geological zone.
The 45km, 12-inch raw gas gathering pipeline is expected to be in service in the second quarter of 2011 and has already received all regulatory approvals.
Total cost of the project is estimated to be $30m, and to support this project, Keyera has secured a long-term, fee-for-service transportation and processing agreement with Bonavista Energy Trust, a major producer in the area.
