Canada's Keyera plans 210 million Canadian dollars investment to boost NGL recoveries
(Reuters) - Keyera Corp (KEY.TO: Quote) said it plans to invest C$210 million ($213.4 million) to boost recoveries of ethane and other high-margin natural gas liquids at the Rimbey gas plant in west central Alberta.
Keyera said the expansion will allow it to recover more than 90 percent of the ethane from the plant, one of the largest natural gas midstream businesses in western Canada.
The company expects to extract ethane of up to 20,000 barrels per day after installing a turbo expander unit with a capacity of 400 million cubic feet per day.
The Rimbey gas complex, built in 1960, has raw inlet capacity of 422 mmcf/d, according to the company's website.
The plan also includes the construction of a 34 kilometer ethane pipeline to connect to the Alberta Ethane Gathering System, said Keyera, which provides processing, storage, transportation and marketing services to oil and gas companies.
"With increased liquids-rich drilling activity in the area, raw gas processing capacity with deep-cut liquids extraction capability is in demand," Chief Operating Officer David Smith said in a statement.
The construction is expected to begin in the fourth quarter of 2012 and start-up in late 2014.
(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Don Sebastian)
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