A key development contract has been announced for Keyera’s planned new $470 million natural gas gathering and processing complex south of Grande Prairie, Alberta.
Dallas, Texas-based Jacobs Engineering says it has entered into an engineering services agreement with Keyera for liquids handling and gas processing at the facility, which Keyera sanctioned at the end of May.
The value of the contract was not disclosed.
At full build out, the complex is expected to process up to 300 million cubic feet of sour gas and 25,000 bbls/d of liquids (field condensate).
The first phase includes a 150 mmcf/d sour gas processing plant with acid gas injection capabilities, 25,000 bbls/d of condensate processing facilities, a gathering pipeline system and field compressor stations.
Start up is expected in mid-2019.
Pending Keyera’s ability to secure agreements to handle additional volumes, the second phase of the project would add another 150 mmcf/d of sour gas processing capacity and extend the gathering system. The second phase is expected to come on stream in 2021.
“This agreement marks a significant milestone for Jacobs to leverage our presence in the midstream industry in Canada, and increase our market share and potential for growth in this sector,” Jacobs senior vice-president Bassim Shebaro said in a statement.
“Understanding Keyera’s already impressive gas gathering and processing business, this contract could be the start of a mutually beneficial long-term relationship.”