ILF bags mainline FEED contract for $991m KAPS project in Canada

WCN Editorial Team 22 Oct 2019 NORTH AMERICA ENERGY & UTILITIES

ILF Consulting Engineers has been awarded a contract by Keyera for the mainline Front End Engineering Design (FEED) and detailed engineering for the C$1.3bn ($991.5m) Key Access Pipeline System (KAPS) project in Canada.

KAPS, a natural gas liquids (NGL) and condensate pipeline system, will connect the liquids-rich Montney and Duvernay production areas of northwestern Alberta to the fractionation and condensate hubs in Fort Saskatchewan, Alberta.

Backed by long-term contracts with significant take-or-pay commitments, the pipeline system provides additional and alternative transportation solutions to deliver growing Montney and Duvernay production in northwestern Alberta to Fort Saskatchewan market.

The project is being developed by Keyera in 50-50 partnership with SemCAMS Midstream, which is owned jointly by SemGroup and KKR.

Keyera plans to commence initial construction on KAPS from northwest of Grande Prairie and connect to Keyera’s Fort Saskatchewan Fractionation and Storage Facility (KFS).

The pipeline, which will replace SemCAMS Midstream’s previously announced Montney to Market (M2M) pipeline, will comprise a 16-inch condensate pipeline and a 12-inch NGL mix pipeline, and associated pumping stations, including provisions for future expansion.

Construction on the project is planned to commence in the second half of 2020, with completion scheduled in the first half of 2022.

The pipelines will be connected to third-party facilities as well as Keyera and SemCAMS Midstream-owned facilities.

By 2022, Keyera and SemCAMS will have nine operational gas plants in northwestern Alberta with access to approximately 2.25 billion cubic feet per day of natural gas processing capacity and 130,000 barrels per day of condensate handling facilities.

Recently, Keyera chief commercial officer and senior vice president Dean Setoguchi said: “We’re pleased to move this project forward as it creates a competitive alternative for producers in the area and sets Keyera up with a strong foundation for future opportunities.

“KAPS improves the integration of our value chain, allowing us to attract additional volumes to our downstream infrastructure that includes liquids transportation, condensate services, NGL fractionation, storage and terminalling and marketing.”

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Image: Illustrative pipeline route. Photo: courtesy of Keyera.

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