Keyera Energy Restarts Construction on Caribou Natural Gas Processing Plant Expansion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Keyera Energy (Calgary, Alberta), a business unit of Keyera Facilities Income Fund (TSX:KEY.UN) (Calgary, Alberta), has restarted construction of the Caribou natural gas plant expansion after the project was placed on hold in mid-2009 amid uncertainty relating to the future of commodity prices. Construction activities resumed at the plant, located near Fort Nelson, British Columbia, at beginning of this year.

The scope of the expansion involves the addition of a new processing train with a capacity of approximately 40 million square feet per day of natural gas sourced from the Bougie region. The addition of an amine-sweetening unit will allow the Caribou plant to handle the expanded volumes of sour gas. Keyera Energy will also install three new gas compressor units, totaling 2,100 horsepower (HP) of compression. The company will install a new 1,200-HP engine-driven sales gas reciprocating compressor and a new 600-HP engine-driven reciprocating compressor to handle increased volumes of acid gas. Keyera Energy will also install a new 300-HP electric-drive screw-type compressor for the new refrigeration unit for dew-point control.

Construction on the $35 million expansion is expected to be completed this June. Keyera Energy has awarded the engineering contract for the expansion to Gas Liquids Engineering Limited (Calgary). The mechanical installations contract for the expansion project was awarded to Pillar Oil Field Projects (Calgary). The Caribou plant expansion will allow Keyera Energy to process new natural gas volumes coming from the Bougie area near Fort Nelson. This will delay the need for Keyera Energy to construct a new natural gas processing plant in the Bougie area for at least two years. Keyera Energy has already purchased the land for the future gas processing facility.

The new compressor units that are three units out of approximately 11,000 compressor units tracked by Industrial Info's Natural Gas Database.

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