CALGARY, Alberta—Encana Corp. (NYSE: ECA) has reached an agreement with Keyera Partnership, a subsidiary of Keyera Corp., under which Keyera will acquire and fund the remaining development of Encana’s Pipestone Liquids Hub and Encana’s planned Pipestone Processing Facility. This agreement provides Encana with an additional 33,000 barrels per day (bbl/d) of net raw condensate processing capacity and 170 million cubic feet per day (MMcf/d) of net inlet natural gas processing capacity. Keyera will provide Encana with processing services under a competitive fee-for-service arrangement.
“We are pleased to expand our relationship with Keyera and to have completed another highly innovative midstream agreement that significantly reduces our financial obligations compared to a traditional take-or-pay structure,” said
Under the agreement, Keyera will acquire and fund the remaining development of Encana's Pipestone Liquids Hub, currently estimated at a total of approximately
Keyera will also own and fund Encana’s planned Pipestone Processing Facility which will include associated acid gas disposal and water handling infrastructure and be located alongside the Pipestone Liquids Hub. Designed to accommodate future capacity expansion, the initial facility will provide
Keyera will provide
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