Keyera Corp. credit partnerships for serving to get KAPS pipeline to Fort Saskatchewan constructed

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Celebrating its just lately accomplished 575-kilometre Key Entry Pipeline System (KAPS) pipeline Wednesday, power infrastructure firm Keyera Corp credited early collaboration with native and Indigenous communities for getting the venture throughout the end line.

KAPS, at its most capability, will transport 350,000 barrels per day of pure fuel liquids (NGLs) and condensate from northern Alberta to Keyera’s liquids processing and storage hub in Fort Saskatchewan, about 50 kilometres northeast of Edmonton.

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It’s the 25-year-old firm’s largest venture.

At an occasion marking the pipeline’s completion Wednesday, Keyera president and CEO Dean Setoguchi pegged the price of the venture at about $2 billion, calling it a “milestone achievement” for Keyera, and a vital piece of infrastructure for Alberta.

“KAPS is greater than a pipeline,” he mentioned, saying 350 pipeline modifications had been made based mostly on land-use research and discussions with Indigenous elders, chiefs, municipalities, neighborhood members and different stakeholders.

“It’s an power extraction resolution, serving to to unlock partnership and prosperity by purposeful method,” he mentioned.

NGLs are extracted when pure fuel is produced, and can go to the Industrial Heartland to be used in petrochemical crops producing issues like plastics, for industrial use, or for export.

Whereas Setoguchi mentioned the pipeline was wanted to get NGLs to Fort Saskatchewan, it’s going to additionally assist allow extra pure fuel manufacturing, and finally assist liquid pure fuel make its method to the west coast for world export.

The corporate mentioned it engaged with 22 Indigenous communities alongside the pipeline route, which additionally crosses 9 Alberta municipalities. Sixty Indigenous-owned or affiliated companies had been contracted on the venture, with an estimated $272-million price of building providers contracts with Indigenous-owned or affiliated companies.

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“Whereas KAPS (building) is over, we’ll proceed to attempt to work with our Indigenous companions for future enterprise alternatives as properly,” Setoguchi advised reporters.

KAPS is operated by Keyera and half-owned by funding agency Stonepeak.

Session and land acquisition started in 2018, and building in 2020. The road started transporting condensate in 2020, with NGLs transferring quickly after in June.

Setoguchi mentioned Keyera needed to make sure it was up and working earlier than making a celebratory announcement, however no issues have since come to gentle.

“We needed to respect that there have been lots of fires throughout Alberta and we wish to be very respectful, and security comes first of thoughts for us,” he mentioned.

‘I see this as the start’: Chief George Arcand Jr.

Chief George Arcand Jr. advised reporters Alexander First Nation was concerned early on within the venture’s planning, together with when it got here to enter on potential native environmental impacts.

“We had been part of figuring out a number of the alignment, a part of figuring out a number of the building measures that had been undertaken with our enterprise companions. When you find yourself on the desk at an early stage, you may affect change and alternative and Keyera gave us that chance,” he mentioned, including the settlement affords an excellent template for session and for rising enterprise alternatives for First Nations.

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“I see this as the start, and I feel this is a chance for us to now begin to set the bar larger, and a possibility for us to do issues higher in Alberta,” he mentioned.

Talking on the occasion on Wednesday, Premier Danielle Smith mentioned the venture would assist create jobs. She didn’t take questions from reporters.

“I mentioned to Dean (Setoguchi), ‘How did you get this venture constructed with out the drama that we usually see round pipeline initiatives?’ And I feel it’s actually a credit score to all of the work that you simply did on session, on surroundings and partnerships,” Smith mentioned.

Keyera mentioned in a information launch $3.1 million was invested in neighborhood funding to help Indigenous coaching, infrastructure, well being packages, and neighborhood initiatives.

One truck terminal in Fox Creek, about 270 km northwest of Edmonton, and a pump station close to Whitecourt, about 177 km northwest of the capital, had been additionally constructed as a part of the venture.

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X: @reportrix

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