Keyera Corp. expects to invest growth capital of between $600 million and $700 million in 2017, mainly to complete its three major Liquids Infrastructure projects including acquiring the South Grand Rapids pipeline, expand the liquids handling capacity at the Simonette gas plant and advance work on the Keylink pipeline.
Announced today, Keylink — a new NGL gathering pipeline system — will provide producers in west-central Alberta with a pipeline alternative for transporting NGLs from a number of Keyera gas plants. The estimated $147-million Keylink system is targeted to be operational by mid-2018.
Keyera also announced a project to expand the liquids handling capacity at the Simonette gas plant to meet customers' growing needs. The project is estimated to cost $100 million and to be operational by mid-2018, based on the proposed construction schedule.
To support future growth, Keyera recently completed the acquisition of 1,290 acres of undeveloped land adjacent to its Josephburg rail terminal in Alberta's Industrial Heartland near Fort Saskatchewan. Strategically located in Western Canada's liquids hub, Keyera said the land is expected to provide the company with a wide range of business opportunities for future growth.
Keyera reported net earnings of $217 million ( $1.21 per share) in 2016 compared to $202 million ( $1.19 per share) in 2015.