Keyera to acquire majority stake in Ricinus gas plant
Wants to increase capacity to 221 million cubic feet per day.
CALGARY — Keyera Corp. has reached an agreement to acquire a 70.79% ownership interest in the Ricinus deep-cut gas plant in west central Alberta for $65 million.
The Ricinus Plant, located 22 kilometres south of Keyera’s Strachan deep-cut gas plant, is a sweet gas processing plant that extracts a C3+ mix of natural gas liquids (NGL). It has a current operating capacity of 124 million cubic feet per day, compared to a licensed capacity of 221 million cubic feet per day.
The lower operating capacity is due to only one of the two NGL processing trains currently in operation. A turnaround of the Ricinus Plant was completed in September 2014.
Assuming the acquisition closes as anticipated, Keyera plans to increase utilization and potentially reactivate the second NGL processing train to enable the Ricinus Plant to operate closer to its licensed capacity. It also has plans to build a new pipeline between Ricinus Plant and Strachan.
Keyera Corp. operates one of the largest natural gas midstream businesses in Canada, consisting of natural gas gathering and processing as well as the processing, transportation, storage and marketing of NGLs, the production of iso-octane and crude oil midstream activities.
Its NGL and crude oil infrastructure, including pipelines, terminals and processing and storage facilities, as well as its iso-octane facility, are located in Edmonton and Fort Saskatchewan, Alta.