Canadian midstream operator Keyera has signed an agreement to fractionate and handle natural gas liquids from Chevron Canada’s Kaybob Duvernay operations near Fox Creek, Alberta.
The agreement stands valid for a period of 20 years and comprises an area of dedication that holds more than 230,000 gross operated acres and also includes take-or-pay commitments.
Pursuant to the agreement, Keyera will provide fractionation, storage and terminalling services to Chevron for around 50% of its natural gas liquids from the area of dedication on a fee-for-service basis.
Keyera liquids business unit senior vice-president Dean Setoguchi said: “We are pleased to have been selected by Chevron to provide natural gas liquids (NGL) midstream solutions, highlighting our commitment to provide reliable and competitive services with a focus on our customers’ needs.
“With Chevron being one of the largest leaseholders in the Duvernay resource play, the agreement represents an exciting opportunity for Keyera.”
The services will be provided through individual long-term agreements.
The company will render the services under the contract through its fractionation, storage and terminalling assets at the Keyera Fort Saskatchewan energy complex.
Based on the success and scale of Chevron’s Duvernay programme, the company noted that it may consider the expansion of its facilities in the future.
Keyera provides services such as natural gas gathering and processing, NGL processing, transportation, storage and marketing to oil and gas producers in the Western Canada Sedimentary Basin.