Keyera Sees Higher KAPS Costs Again

Keyera stands to benefit from an integrated business model with significant potential to grow via the Key Access Pipeline System, which comes on line in early 2023. Inflationary costs and poor weather have boosted the cost to complete the pipeline again in 2022, and costs now stand at CAD 1 billion. The pipeline will connect the firm’s northern plants to its Fort Saskatchewan liquids hubs and will consist of pipelines for condensate and natural gas liquids mix. By increasing its proportion of long-term contracts and maximizing utilization rates across facilities, Keyera is positioned to take advantage of more stable cash flows in the future while capitalizing on Canadian oil sands, natural gas, and NGL growth.