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By Curtis Galbraith

Energy Business

New Grande Prairie area gas plant opens ahead of schedule

Oct 13, 2020 | 2:55 PM

A new gas plant northwest of Grande Prairie started up on Tuesday, five months ahead of schedule.

The Pipestone Processing Facility is a joint effort between Keyera and Ovintiv.

Keyera says in a news release that the new plant has the capacity to process 200 million cubic feet per day of gas, plus 24,000 barrels per day of condensate.

“This project aligns with Keyera’s strategy of building a stronger presence in the liquids-rich Montney development, which is one of the most economic developments in the Western Canada Sedimentary Basin,” said Keyera CEO David Smith, in that release. “With our Pipestone, Wapiti, and Simonette gas plants, Keyera has infrastructure in the area providing 950 million cubic feet per day of gas processing capacity and 90,000 barrels per day of condensate processing capacity.

“In the future, this capacity will be connected to our KAPS natural gas liquids and condensate pipeline that we expect to have in service in 2023. We look forward to continuing to work with Ovintiv to support their important development in a safe and environmentally responsible manner.”

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A release from Ovintiv says that the company will pay to use 170 million cubic feet and 19,000 barrels per day of that capacity.

“We continue to show our team’s ability to manage complex projects. In fact, this is our fourth project since 2017 delivered ahead of schedule and at or below budgeted costs,” added Ovintiv CEO Doug Suttles in his company’s news release. “This project provides a very cost-effective and flexible arrangement to optimize our Montney production and the capacity to fully capture the resource potential from our very attractive Pipestone asset.

“We have a great working relationship with Keyera, and our business interests are aligned to safely operate this important addition to the condensate-rich Montney,”

Both companies say the project was completed within budget.