April 02, 2018 - 4:46 AM
CALGARY - A subsidiary of Keyera Corp. will purchase Encana's Pipestone liquids hub and the planned Pipestone processing facility in western Alberta under an agreement announced Monday.
The Pipestone liquids hub is under construction near Grande Prairie, Alta., with operations expected to start in the fourth quarter of 2018.
Keyera will acquire and fund the remaining development cost of the hub, estimated at $105 million. It will also own and fund the planned Pipestone processing facility, which is expected to start up in 2021.
Sales proceeds received by Encana are about $39 million.
Encana will be responsible for construction of the project and will initially operate it.
Keyera will own the project and be responsible for commercial development. It will also provide processing services to Encana under a long-term fee-for-service arrangement.
Keyera also has the option to assume operatorship five years from the startup of a natural gas processing and liquids stabilization plant.
Companies in this story: (TSX:ENA, TSX:KEY)
News from © The Canadian Press, 2018