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Alberta 's new 575-km. gas pipeline will carry 350,000 barrels per day

Keyera’s KAPS system links Montney and Duvernay gas fields to storage and distribution hubs near Edmonton
Keyera Corp. president and CEO Dean Setoguchi with Alberta Premier Danielle Smith at the pipeline opening celebration in Fort Saskatchewan on October 4. | Submitted

Alberta has seen the completion of Keyera Corp.’s Key Access Pipeline System (KAPS), a 575-kilometre gas pipeline running from the Montney and Duvernay production basins north of Grande Prairie to Keyera Corp.'s liquids processing and storage hub in Fort Saskatchewan, northeast of Edmonton.

“KAPS is more than a pipeline, it’s truly an energy infrastructure solution,” said Dean Setoguchi, president and CEO of Keyera, who was joined in Fort Saskatchewan October 4 by Alberta Premier Danielle Smith to mark the completion.

KAPS is operated by Calgary-based Keyera — one of Canada's largest independent midstream energy infrastructure businesses — and 50 per cent owned by Stonepeak, an alternative investment firm specializing in infrastructure and real assets.

The KAPS pipeline, valued at more than $1.3 billion, will transport 350,000 barrels per day of natural gas liquids and condensate.

“The completion of the KAPS pipeline represents a significant milestone in the expansion of natural gas production in Western Canada.  As natural gas continues to be a key contributor to the global energy mix and energy transition, especially in East Asia, we believe that KAPS has a critical role to play,” said Anthony Borreca, senior managing director at Stonepeak. 

 The completion of KAPS required Keyera’s engagement and partnerships with 10 municipalities, 22 Indigenous communities and 60 Indigenous-owned or affiliated businesses along the route.

“Determining the pipeline route was a collaborative effort that extended well beyond regulatory, environmental, safety and land factors.  It included input from each Indigenous community, and the approval of nearly 600 landowners and occupants," according to a Keyera statement.

“This is such great news for Keyera, its partners, and for Alberta,” said Premier Smith. “KAPS is furthering economic opportunity and prosperity for Indigenous partners and communities as well as for the entire province. I’m excited to see the positive impacts this project will have and the economic growth we’ll see in the years to come.”

 During its four years of construction, KAPS generated more than $650 million in labour income, the company reported.