Keyera Completes 357-Mile Key Access Pipeline System

By Mary Holcomb, Digital Editor

(P&GJ) — Keyera Corp. has successfully completed the Key Access Pipeline System (KAPS), a 575-kilometer (357-mile) NGLs and condensate pipeline. It will transport 350,000 barrels per day (bbl/d) of NGL and condensate from the Montney and Duvernay basins to Keyera's processing hub in Alberta's Industrial Heartland, Fort Saskatchewan.

At its Fort Saskatchewan facility, Keyera manages a fractionation unit with a capacity of 65,200 bbl/d and a de-ethanizer capable of processing 30,000 bbl/d.

The company also boasts an impressive total storage capacity of 15.5 million barrels in underground caverns and surface tanks. Alongside pipeline transportation of separated liquids, Keyera's Industrial Heartland infrastructure includes rail and truck terminals.

KAPS operates under the diligent care of Keyera, with a substantial 50% ownership shared by Stonepeak, a prominent alternative investment firm specializing in infrastructure and real assets.

"KAPS has been years in the making, and it is the platform that propels us forward and lets us focus on what we do best – supply responsibly produced Canadian energy," Dean Setoguchi, president and CEO of Keyera, said.

In December 2022, pipeline operator Pembina Pipeline Corp.'s joint venture with KKR & Co. agreed to sell its 50% stake in KAPS to Stonepeak Partners for C$662.5 million ($484.89 million).

The deal granted Stonepeak entry to a pipeline network responsible for transporting natural gas liquids to processing centers destined for Asian export. This development is particularly relevant given the increasing demand for North American LNG in Asia, as the region shifts away from coal. Furthermore, the diminished Russian exports have created a gap in the global supply, making the move even more strategic.

During construction, KAPS generated more than $650 million in labor income and 7.7 million people hours. Now in service, KAPS plays a key role in positioning Alberta as an integral conduit for petrochemical and upgrading feedstock in the region and a competitive world class destination for growth and investment today and tomorrow.  

"The completion of the KAPS pipeline represents a significant milestone in the expansion of natural gas production in Western Canada.  As natural gas continues to be a key contributor to the global energy mix and energy transition, especially in East Asia, we believe that KAPS has a critical role to play," Anthony Borreca, senior managing director at Stonepeak, said. 

Integral to the successful construction and completion of KAPS was Keyera's engagement and partnerships with communities along the pipeline route, including 10 municipalities, 22 Indigenous communities and 60 Indigenous-owned or affiliated businesses.

Determining the pipeline route was a collaborative effort that extended well beyond regulatory, environmental, safety and land factors.  It included input from traditional land use studies from each Indigenous community, approximately 400 site visits with Rights holders, and the approval of nearly 600 landowners and occupants.  

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