Keyera Corp. has entered into a 20-year midstream agreement with Chevron Canada Limited to fractionate and handle natural gas liquids from Chevron's Kaybob Duvernay operations near Fox Creek, Alberta. The Agreement includes an area of dedication that is in excess of 230,000 gross operated acres and also includes take-or-pay commitments. Under the terms of the Agreement, Chevron will deliver approximately 50% of its natural gas liquids from the area of dedication to Keyera for fractionation, storage and terminalling services on a fee-for-service basis.
Upon Chevron's request during the term of the Agreement, Keyera will provide such services through individual long-term service agreements. Keyera expects to provide the requested services through its fractionation, storage and terminalling assets at its Keyera Fort Saskatchewan energy complex. Depending on the success and scale of Chevron's Duvernay program, Keyera may need to expand its facilities in the future.
"We are pleased to have been selected by Chevron to provide NGL midstream solutions, highlighting our commitment to provide reliable and competitive services with a focus on our customers' needs," said Dean Setoguchi, Keyera's Senior Vice President of the Liquids Business Unit. "With Chevron being one of the largest lease holders in the Duvernay resource play, the Agreement represents an exciting opportunity for Keyera. We look forward to working with Chevron in a long-term, mutually beneficial relationship."