Keyera Corp. reached an agreement to acquire a 70.79% ownership interest in the Ricinus deep-cut gas plant in west central Alberta for CA$65 million (US$56 million). The agreement is subject to closing conditions, including the waiver or expiration of rights of first refusal held by the other owners of the plant.

The Ricinus plant is located 22 kilometers south of Keyera’s Strachan deep-cut gas plant, which is a sweet gas processing plant that extracts a C3+ mix of NGL. It currently processes about 124 million cubic feet per day, as only one of its two NGL processing trains is in operation.

Keyera plans to increase utilization at the Strachan plant in the future. It also plans to build a new pipeline between the Ricinus plant and Strachan plant, and to invest in associated gas gathering systems.