Keyera sanctions capacity expansion at Pipestone gas plant

In January 2023, Keyera Corp. sanctioned a 40 million cubic feet per day capacity expansion at its Pipestone gas plant, subject to final regulatory approval anticipated to be forthcoming in March 2023. 

The project, supported by multiple long-term take-or-pay agreements, is expected to cost between $60 million and $70 million and to be completed in the first quarter of 2024.

The Pipestone gas plant was developed in a joint venture with Ovintiv. Ovintiv is the initial operator and Keyara has the option to assume ownership in 2026.

Andrew Lamb of Gowling WLG advised Keyera on the negotiation of these agreements.