Friday, June 9, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home Gas

Keyera Gaining New KAPS Partner Following Competition Board Investigation

10 months ago
in Gas
Keyera Gaining New KAPS Partner Following Competition Board Investigation
Share on FacebookShare on Twitter


Calgary-based Keyera Corp., whose massive pipeline system intended to move liquids from the Montney Shale is 70% complete, is awaiting a new partner to potentially take half-ownership in the project after the Competition Board of Canada ordered a partner’s sale.

Keyera

CEO Dean Setoguchi, who discussed second quarter results during a conference call, said the Competition Bureau had secured a consent agreement that would require Energy Transfer Canada ULC (ETC) to sell its 50% stake in the Key Access Pipeline System (KAPS).

Keyera and some Montney Shale producers had expressed concerns about competition after KKR Global Infrastructure raised its ownership in ETC to 100%, while also partnering with rival Pembina Pipeline Corp.

Selling ETC’s stakes would “preserve competition in pipeline transportation” for NGLs, the Competition Bureau stated. “Market participants have indicated that the proposed merger would weaken a likely competitive alternative to Pembina’s Peace Pipeline system.”

Construction of KAPS has generated favorable results for Montney producers before the corporate alliance by ETC was completed, according to the Competition Bureau.

“Upstream energy companies have been able to leverage competition between the Peace Pipeline system and KAPS, including negotiating more competitive tolls and additional flexibility, for future NGL transportation on the pipelines,” it said. 

“It is expected that this type of competition will continue when KAPS is operational.”

The Competition Bureau “also imposed strict requirements to ensure that commercially sensitive data, including customer information, is protected,” Setoguchi noted. “The action taken…further reinforces both industry’s desire for competition and the importance of KAPS as a critically important alternative to the existing pipeline system. We look forward to the conclusion of the sale process…”

The KAPS pipeline “is a gamechanger for Keyera, as it is the missing link in our value chain,” Segoguchi said. It would connect the Montney Shale gathering and production (G&P) business and other third-party facilities to Keyera’s Liquids Infrastructure business in Edmonton and Fort Saskatchewan.

“It also provides meaningful future growth opportunities, like our Zone 4 expansion, which would extend the pipeline to near the British Columbia border,” the CEO said. “KAPS stands to capture growing volumes from the Western Canada Sedimentary Basin. This growth is underpinned by many factors, including the increasing importance of energy security and the role Canada plays in delivering responsibly produced energy to the world.”

Bullish On Commodity Prices

In discussing the quarterly progress, Setoguchi said oil and gas prices show no signs of retreating.

“We believe commodity prices are poised to remain strong, driven by constrained global supply and continued demand for responsibly produced energy,” he told investors.

Keyera’s fee-for-service infrastructure business “provides the foundation for a stable and growing dividend over time,” he said. “Complementing our fee-for-service business is our Marketing segment that enables us to fund infrastructure projects,” including KAPS.

During 2Q2022, Keyera’s G&P volumes grew by 6% year/year from higher volumes at the Pipestone and Wapiti complexes, both in the Montney, which straddles British Columbia and Alberta. 

“At Wapiti, we’ve begun to utilize the second processing train as demand for our services is increasing,” Setoguchi said. “We are working with our customers to manage the water disposal associated with the raw gas to ensure we continue to maximize utilization.”
As demand increases from producers, “we are evaluating opportunities to expand the capacity of our Pipestone gas plant.”

[Decision Maker: A real-time news service focused on the North American natural gas and LNG markets, NGI’s All News Access is the industry’s go-to resource for need-to-know information. Learn more.]

There’s also encouraging signs about “consolidation among upstream producers,” the CEO noted. “Most recently, a producer near our Simonette gas plant announced plans to double production over the next three to five years. We have capacity at Simonette to support growth in gas volumes, and our KAPS pipeline to transport associated liquids volumes.” 

Keyera, which reports in Canadian dollars (C$1=77 cents), said second quarter net income was $178 million (78 cents/share), versus year-ago profits of nearly $79 million (36 cents).

Gordon Jaremko contributed to this story.



www.naturalgasintel.com

Latest Oil News

Texas Justices Consider Company’s Pause on Oil & Gas Payments

Texas Justices Consider Company’s Pause on Oil & Gas Payments

February 1, 2023
Gasoil margins fall on cautious sentiment amid firm oil

Gasoil margins extend losses on cautious sentiment

January 31, 2023
Monitoring Government: EPA tightens oil & gas emission rules

Monitoring Government: EPA tightens oil & gas emission rules

January 30, 2023
Indonesia faces difficult task to create OPEC-like group for nickel

Oil And Gas In For Turbulent Year As Governments And Industry Butt Heads

January 29, 2023
Tags: BoardCompetitionGainingInvestigationKAPSKeyerapartner
Previous Post

STOCK MARKET NEWS: S&P, Nasdaq slip ahead of inflation data, Zales, Signet buys Blue

Next Post

U.S. Climate Bill Exempts most Oil industry from Methane Fees

Related Posts

Texas Justices Consider Company’s Pause on Oil & Gas Payments

Texas Justices Consider Company’s Pause on Oil & Gas Payments

by Oil Market News
February 1, 2023
0

Texas justices on Wednesday weighed whether operators of oil and gas leases can withhold payments without interest under the safe...

Gasoil margins fall on cautious sentiment amid firm oil

Gasoil margins extend losses on cautious sentiment

by Oil Market News
January 31, 2023
0

Asia’s 10 ppm sulphur gasoil margins extended losses for a second consecutive session, as cautious trading sentiment continue to weigh...

Monitoring Government: EPA tightens oil & gas emission rules

Monitoring Government: EPA tightens oil & gas emission rules

by Oil Market News
January 30, 2023
0

Photo: Adobe In November, the U.S. Environmental Protection Agency (EPA) rolled out its supplemental proposed methane emissions rule, primarily aimed...

Indonesia faces difficult task to create OPEC-like group for nickel

Oil And Gas In For Turbulent Year As Governments And Industry Butt Heads

by Oil Market News
January 29, 2023
0

Windfall taxes, price caps, and calls for more oil and gas production marked 2022 in oil and gas. It looks...

Beshear, oil and gas leaders pitch using fossil fuels to make hydrogen fuel in

Beshear, oil and gas leaders pitch using fossil fuels to make hydrogen fuel in

by Oil Market News
January 28, 2023
0

This story is by the Kentucky Lantern, which is part of States Newsroom, a network of news bureaus supported by grants...

Focus on Water & Wastewater Treatment, Oil & Gas, Chemicals & Petrochemicals,

Internet of Things-as-a-Service to Enable Improved Opportunities

by Oil Market News
January 27, 2023
0

DUBLIN, Jan. 27, 2023 /PRNewswire/ -- The "Global Process Gas Reciprocating and Centrifugal Compressor Services Market in the Oil and...

Next Post
U.S. Climate Bill Exempts most Oil industry from Methane Fees

U.S. Climate Bill Exempts most Oil industry from Methane Fees

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

Oil posts biggest weekly gain since October on China hopes, dollar slump

Oil posts biggest weekly gain since October on China hopes, dollar slump

5 months ago
Is Imperial Oil Ltd (IMO) Stock a Bad Value Friday?

Is Imperial Oil Ltd (IMO) Stock a Bad Value Friday?

11 months ago
Govt Cuts Windfall Tax On Diesel, ATF Export; Raises Levy On Domestic Crude Oil

Govt Cuts Windfall Tax On Diesel, ATF Export; Raises Levy On Domestic Crude Oil

10 months ago
Oil Stocks Drop As Biden Pushes For Gas Tax Holiday

Oil Stocks Drop As Biden Pushes For Gas Tax Holiday

12 months ago
Chevron to resume Venezuela oil production as US eases sanctions

Chevron to resume Venezuela oil production as US eases sanctions

6 months ago
ADVERTISEMENT
UK set to introduce floor for oil and gas windfall tax

UK set to introduce floor for oil and gas windfall tax

June 9, 2023

Canadian refiner Irving Oil explores options including sale

June 8, 2023

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

June 7, 2023

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

June 6, 2023

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

June 5, 2023

Opec bans prominent media groups from Vienna meeting

June 4, 2023

Crude Oil

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

February 1, 2023
Oil rises after U.S. fuel stocks draw down; economic concerns loom

Oil prices settle steady on higher U.S. demand, weaker dollar

January 31, 2023
S&P 500 Down 1%; Crude Oil Drops Over 2%

S&P 500 Down 1%; Crude Oil Drops Over 2%

January 30, 2023
Russia Can’t Replace the Energy Market Putin Broke

Russia Can’t Replace the Energy Market Putin Broke

January 29, 2023

Investing

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

February 1, 2023
Crude Oil Shielded From Bond and Stock Market Rout

Clean-energy investing poised to top money backing oil and gas after hitting a record

January 31, 2023
Crude Oil Shielded From Bond and Stock Market Rout

The Cushing® MLP & Infrastructure Total Return Fund Announces Fund Name Change

January 30, 2023
Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

January 29, 2023

Market

UK set to introduce floor for oil and gas windfall tax

UK set to introduce floor for oil and gas windfall tax

June 9, 2023
Canadian refiner Irving Oil explores options including sale

Canadian refiner Irving Oil explores options including sale

June 8, 2023
UK watchdog bans Shell, Repsol and Petronas greenwashing ads

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

June 7, 2023
Opec+ is not on board with Saudi’s ‘whatever it takes’ message

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

June 6, 2023

OPEC

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

February 1, 2023
‘OPEC does not control the price’: OPEC President | OPEC News

‘OPEC does not control the price’: OPEC President | OPEC News

January 31, 2023
OPEC+ Closely Watches Chinese Factory Data

OPEC+ Closely Watches Chinese Factory Data

January 30, 2023
Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

January 29, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.