Oil & Gas Product News Logo

Pipestone suspends guidance in wake of unplanned downtime extension at Keyera Wapiti gas plant

Pipestone logo

Pipestone Energy Corp. has been notified by Keyera Corp. on August 27, 2020 that the issue relating to the Waste Heat Recovery System within the Keyera Wapiti Gas Plant is more widespread than previously indicated.

The total scope of the problem and root cause of the outage has yet to be determined.  As such the original estimate provided by Keyera to repair the plant and return to operations is no longer valid. In addition at this time, Keyera is unable to provide a definitive indication for the expected go-forward outage duration.

Based on this new development, Pipestone Energy is formally suspending its 2020 production and cash flow guidance due to the timing uncertainty for a return to normal operations at the Keyera Plant. It should be noted, the Company's contingent business interruption insurance includes coverage over the Keyera Plant and has a 30-day waiting period. As such it is expected to cover any net financial losses incurred by Pipestone Energy with respect to the outage post September 16, 2020 if required. When the Company receives definitive information in regards to an expected timeline for the resumption of operations at the Keyera Plant, Pipestone Energy will provide a further update to the market.

Company info

2nd Floor, Sun Life Plaza West Tower
144 – 4th Avenue SW
Calgary, AB
CA, T2P 3N4

Website:
keyera.com

Read more

More from Industry News

Get our newsletter

Subscribe to our free magazine

Get Our Magazine

Paper or Digital delivered monthly to you

Subscribe or Renew Learn more

Get our newsletter

Subscribe to our free magazine

Get Our Magazine

Paper or Digital delivered monthly to you

Subscribe or Renew Learn more