July 28, 2010
Work is underway on a new project that will enhance Keyera's NGL transportation infrastructure in west central Alberta, improve the connectivity of our Strachan gas plant to our other facilities and expand our capture area for natural gas liquids.
The Strachan gas plant has a deep-cut unit which is able to remove valuable natural gas liquids (NGLs), such as propane, butane and condensate from the raw gas stream coming into the plant. Currently, the NGL mix that is extracted at Strachan is trucked to our Rimbey gas plant or to our Fort Saskatchewan facility where the mix can be fractionated into specification NGL products which can then be stored in our underground storage caverns or transported to end markets.
With this new project, Keyera will construct a small section of new pipeline which will connect to the Plains Midstream Canada Rangeland pipeline system. The Rangeland system is already connected to Rimbey Pipeline which allows us to ship the NGL mix north to our Fort Saskatchewan fractionation and storage facility.
Not only will this project be a great addition to our infrastructure network, it also delivers a number of other benefits. For example, when the new pipeline is completed, we will have the ability to transport the NGL mix from Strachan by pipeline rather than relying solely on trucks. With the pipeline option, we expect to be able to reduce the number of trucks that would otherwise be required to move the NGLs, a move that will help to ease the burden on the provincial and local road networks and reduce greenhouse gas emissions associated with that truck traffic. We estimate that the pipeline will replace about 15 - 20 trucks per day, accounting for about a million kilometers of vehicle traffic a year and about 1100 tonnes of truck-related CO2 emissions.
In addition, because of some of the other modifications we will be implementing in connection with the new pipeline, we will be able to reduce routine flaring currently required at one of our riser sites.
Based on current construction plans, we hope to be able complete construction of the new pipeline by the end of the third quarter this year so that start up can begin in the forth quarter.
Without the pipeline, we expect that truck traffic could increase significantly due to volume of the liquids rich gas we are seeing producers deliver to the Strachan gas plant. By taking this proactive step, not only can we facilitate the efficient extraction, fractionation and delivery of the valuable NGLs, but we can do so in a way that minimizes community and environmental impacts. This is yet another example of how Keyera selects projects that meet our economic and strategic objectives, as well as our environmental and social responsibility objectives.
Want to know more about the gas processing and NGLs? Click here to watch our Midstream 101 video.