Canadian midstream energy company Keyera said on Wednesday that its "Key Access Pipeline System" (KAPS) natural gas liquids (NGL) and condensate pipeline in Alberta province has been completed, said Ogj.
Service on the 575km KAPS has already begun. It will transport 350,000 bbl/day of NGLs and condensate from the liquids-rich Montney and Duvernay basins in northwest Alberta to Keyera's liquids processing hub at the Fort Saskatchewan petrochemicals production hub near Edmonton. Keyera has fractionation and storage facilities at Fort Saskatchewan.
"Now in service, KAPS plays a key role in positioning Alberta as an integral conduit for petrochemical and upgrading feedstock in the region and a competitive world class destination for growth and investment today and tomorrow," Keyera said.
Keyera is operating the KAPS pipeline system, which is 50% owned by infrastructure investment firm Stonepeak. Analysts at credit watchdog S&P Global said that Keyera’s ability to generate consistent cash flow would strengthen as KAPS becomes fully operational.
Given the high level of activity in the Montney and limited egress out of that area, the pipeline's contracts each have a 75% take-or-pay component, the S&P analysts said. “This has increased the company's level of contractedness, thereby continuing to improve the stability of Keyera's cash flow,” they said.
S&P Global Ratings has raised its issuer credit rating (ICR) on Keyera and its issue-level rating on the company's senior unsecured debt to “BBB” from “BBB-". In addition, it raised its rating on Keyera’s subordinated notes to “BB+” from “BB”. Meanwhile, in Canada's chemical industry Dow is due to make a final investment decision on its net-zero cracker project at Fort Saskatchewan by the end of the year.
We remind, Private Russian oil producer Lukoil will lend Azeri state oil firm Socar $1.5 B as part of a broader deal that will allow Socar's 200,000-barrel-per-day Turkish STAR refinery to process Russian crude again, three industry sources familiar with the deal said on Thursday. The deal will give Lukoil another customer in close proximity to Russian ports after most European refiners stopped importing its crude to comply with European Union sanctions imposed after Moscow launched what it calls a "special military operation" in Ukraine in 2022.
mrchub.com