Keyera Corp. announced that it is proceeding with an expansion at its NGL fractionation and storage facility in Fort Saskatchewan (KFS). The project will involve more than doubling the facility's existing C3+ fractionation capacity from 30,000 barrels per day to 65,000 barrels per day.

In conjunction with the fractionator, the project will include the construction of new product receipt facilities, operational storage and pipeline interconnections. The estimated total gross cost for the project is approximately $220 million. Detailed engineering work is currently underway and Keyera is targeting completion in the first quarter of 2016.

The new fractionator will be capable of handling a C3+ mix stream of NGLs (a mixture of propane, butane and condensate). This incremental C3+ mix fractionation capacity is in addition to the de-ethanizer project currently under construction at KFS, which will allow Keyera to fractionate approximately 30,000 barrels per day of a C2+ mix stream. Both of these expansions will provide NGL producers with additional fractionation infrastructure necessary to develop the significant liquids-rich natural gas reserves in western Canada.