Keyera Corp. has announced that it will suspend operations at its Caribou gas plant next week following a producer's decision to shut in gas production on December 1, 2015.
The Caribou gas plant is Keyera's only gas plant located in Northeast British Columbia where producers receive NGX Spectra Station #2 pricing that has been affected by low North America natural gas prices and regional sales gas pipeline constraints. As a result, gas production in the area has become uneconomic and several producers have chosen to shut in production until pricing improves sufficiently.
The Caribou gas plant was constructed in 1997 and purchased by Keyera in 2004. In 2015, due to declining throughput, the plant's contribution to Keyera's adjusted earnings before interest, taxes, depreciation and amortization has been negligible.