logo
Keyera Announces Sanctioning of KAPS Zone 4 and Provides Other Commercial Updates

Keyera Announces Sanctioning of KAPS Zone 4 and Provides Other Commercial Updates

Globe and Mail2 days ago

CALGARY, AB , /CNW/ - Keyera Corp. (TSX: KEY) ("Keyera") announced today the formal sanctioning of KAPS Zone 4, a strategic extension of its integrated system. This expansion strengthens Keyera's connectivity to the growing liquids-rich Montney regions of northeast British Columbia and northwest Alberta , some of the most active and resource-rich areas in North America .
"The sanctioning of KAPS Zone 4 marks another important milestone in the execution of our strategy to grow and extend our value chain," said Dean Setoguchi , President and CEO. "This project reflects strong customer demand for our fully integrated service offerings and our ability to connect to valuable end-markets. By enhancing connectivity and optionality, Zone 4 strengthens our competitive position and delivers greater value to our customers."
KAPS Zone 4 is an 85-kilometre extension of the existing KAPS pipeline, connecting Pipestone to Gordondale, Alberta . It will connect to NorthRiver Midstream's Northeast BC Connector project. Together, these systems offer Montney producers a fully integrated and cost-effective route from northeast British Columbia to Fort Saskatchewan area fractionation and Keyera's industry-leading condensate hub. The capital cost of KAPS Zone 4 is expected to be $220 million (net to Keyera), which includes investments in additional pumping capacity on KAPS Zones 1 to 3. The project is targeted to enter service in mid-2027.
The project is backed by long-term transportation agreements with several investment-grade Montney producers, averaging 11 years in duration and 75% take-or-pay commitments. The agreements include downstream services such as fractionation, storage, transportation, and marketing, further demonstrating the value of Keyera's integrated offering.
Keyera has secured over 75,000 barrels per day of new contracted volumes across KAPS Zones 1 through 4 in recent months, with substantially all volumes also committed to incremental downstream services.
Keyera's current and future fractionation capacity, which includes the Fort Saskatchewan Fractionation Unit II debottleneck and the Fort Saskatchewan Fractionation Unit III expansion project, is now substantially fully contracted, supporting strong utilization and returns across the system.
Investments in Zone 4 and fractionation expansions directly contribute to the growth of Keyera's long-term, fee-for-service cash flows, supporting continued sustainable dividend growth.
In response to growing volumes across Keyera's integrated system, Keyera has entered into an agreement with AltaGas to export an additional 12,500 barrels per day of natural gas liquids via AltaGas' west coast export facilities starting in 2028. This builds on the 12,500 barrels per day announced earlier this year. The agreement will further strengthen Keyera's ability to offer its customers more diversified market access for LPGs, including premium Asian markets, while providing AltaGas with long-term ratable export volumes and cash flows.
About Keyera Corp.
Keyera Corp. (TSX: KEY) operates an integrated Canadian-based energy infrastructure business with extensive interconnected assets and depth of expertise in delivering energy solutions. Its predominantly fee-for-service based business consists of natural gas gathering and processing; natural gas liquids processing, transportation, storage and marketing; iso-octane production and sales; and an industry-leading condensate system in the Edmonton / Fort Saskatchewan area of Alberta . Keyera strives to provide high quality, value-added services to its customers across North America and is committed to conducting its business ethically, safely and in an environmentally and financially responsible manner.
Forward-Looking Statements
This news release contains certain statements that constitute forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking information"). Forward-looking information is typically identified by words such as "anticipate", "expect", "may", "will", "can", "should", "would", "plan", "intend", "believe", "target", and similar words or expressions, including the negatives or variations thereof. All statements other than statements of historical fact contained in this document are forward-looking information including, without limitation, statements regarding the cost and timing of the KAPS Zone 4 project; the impact of this project on Keyera's stand-alone project return on capital target; the results of additional contracting discussions with third parties and the expected impact on future volumes on KAPS; and expectations around the impact of the agreement with AltaGas on market access.
All forward-looking information is based on a number of risks, expectations, assumptions and uncertainties that Keyera has used to develop such information, but which may prove to be incorrect. Such risks, expectations, assumptions and uncertainties include, without limitation, general industry, market and economic conditions; activities of customers, producers and other facility owners; actions by joint venture partners or other partners which hold interests in certain of Keyera's assets; counterparty performance and credit risk; reliance on third parties; actions by governmental authorities; and the ability to obtain regulatory, stakeholder and third-party approvals. Further information about the factors affecting forward-looking information and management's assumptions and analysis thereof, is available in Keyera's Management's Discussion and Analysis for the year ended December 31, 2024 and in Keyera's Annual Information Form available on Keyera's profile on SEDAR+ at www.sedarplus.ca. While Keyera believes that the expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because Keyera can give no assurance that such expectations will prove to be correct.
Readers are cautioned that the foregoing list of important factors is not exhaustive, and they should not unduly rely on the forward-looking information included in this press release. Further, readers are cautioned that the forward-looking information contained herein is made as of the date of this press release. Unless required by law, Keyera does not intend and does not assume any obligation to update any forward-looking information. All forward-looking information contained in this press release is expressly qualified by this cautionary statement.
Additional Information
For more information about Keyera Corp., please visit our website at www.keyera.com or contact:
Dan Cuthbertson , General Manager, Investor Relations
Katie Shea , Senior Advisor, Investor Relations

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Canada, U.S. exchanging potential terms on economic and security deal
Canada, U.S. exchanging potential terms on economic and security deal

Globe and Mail

time21 minutes ago

  • Globe and Mail

Canada, U.S. exchanging potential terms on economic and security deal

Canada and the United States are exchanging potential terms of agreement in closely held talks on an economic and security deal, The Globe and Mail has learned, but these do not represent the draft text of an actual pact. These exchanges are an effort to spell out what both sides might be able to agree upon as Ottawa and Washington try to find enough common ground to end their damaging trade war, sources said. The Globe is not naming the sources because they were not authorized to speak publicly. It's also far from clear whether a deal will be landed anytime soon as the United States is negotiating with close to 20 other countries that are seeking relief from tariffs U.S. President Donald Trump has imposed on their products. One government official compared the documents being exchanged to term sheets in the corporate sector, which outline the ingredients of a possible deal and serve as the basis for negotiations. Canada and the U.S. are engaging in talks on a new economic and security relationship that could amount to the first phase of talks with a second phase being the renegotiation of the trilateral United States-Mexico-Canada Agreement possibly to follow as already scheduled in 2026. ArcelorMittal laying off 153 workers in Hamilton as Trump tariffs hammer the steel industry Opinion: Carney was right to not retaliate against Trump's latest tariffs The economic-defence talks are being conducted among a very small circle of officials including International Trade Minister Dominic LeBlanc, Canada's ambassador to the United States Kirsten Hillman, U.S. Commerce Secretary Howard Lutnick and Jamieson Greer, the United States Trade Representative. It's possible this deal may be an executive-handshake agreement such as the one the British government signed with the White House in May. Sources said Canada and the United States are talking about working together to counter China's unfair trade practices, a topic that could affect U.S. tariffs on Canadian steel and aluminum, and further border security arrangements to stop the illegal distribution of the opioid fentanyl. The United States also wants Canada to take a great role in securing the Arctic and join Mr. Trump's ambitious Golden Dome missile shield project – a project Prime Minister Mark Carney has publicly said would make sense for Canadians to be part of. They said each side is putting ideas on paper and sharing them as part of the talks. CBC News on Friday reported it had learned of the existence of a working document outlining details of a potential deal. CBC, citing an unidentified source, said the working document states that Canada is willing to participate in the Golden Dome security program, and it also mentions Canadian commitments to build more infrastructure in the Arctic, Canada's pledge to meet its NATO defence spending targets, as well as previously announced border security investments.

01 Communique Engages Oak Hill
01 Communique Engages Oak Hill

Globe and Mail

time25 minutes ago

  • Globe and Mail

01 Communique Engages Oak Hill

Toronto, Ontario--(Newsfile Corp. - June 11, 2025) - 01 Communique Laboratory Inc. (TSXV: ONE) (OTC Pink: OONEF) (the "Company"), one of the first-to-market, enterprise level cybersecurity providers for the quantum computing era, is pleased to announce that it has retained the services of Oak Hill Financial Inc. ("Oak Hill") to provide, among other things, investor relations, business and capital markets advisory services to the Company (the "Services"). Oak Hill is a Toronto-based investor relations and capital markets advisory firm that has been engaged to, among other things, heighten market and brand awareness for the Company as well as to broaden the awareness of the Company within the investment community via email and phone campaigns. The agreement with Oak Hill is effective as of June 10, 2025 and has an initial period of two months. The agreement is subject to TSX Venture Exchange approval. Oak Hill has agreed to comply with all applicable securities laws and policies of the TSX Venture Exchange in providing its Services. In connection with the Services, Oak Hill will be paid a monthly fee of $12,000, plus applicable taxes. Neither Oak Hill nor its principals have any interest, directly or indirectly, in the Corporation or its securities, or any right or intent to acquire such an interest. About 01 Communique Established in 1992, 01 Communique (TSXV: ONE) (OTC Pink: OONEF) has always been at the forefront of technology. The Company's cyber security business unit focuses on post-quantum cybersecurity with the development of its IronCAP™ product line. IronCAP ™ 's technologies are patent-protected in the U.S.A. by its patents #11,271,715 and #11,669,833. The Company's remote access business unit provides its customers with a suite of secure remote access services and products under its I'm InTouch and I'm OnCall product offerings. The remote access offerings are protected in the U.S.A. by its patents #6,928,479 / #6,938,076 / #8,234,701; in Canada by its patents #2,309,398 / #2,524,039 and in Japan by its patent #4,875,094. For more information, visit the Company's web site at and Neither TSX Venture Exchange ("TSX-V") nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Report recommends diverting millions in surplus cash to replenish city's rainy day fund
Report recommends diverting millions in surplus cash to replenish city's rainy day fund

CTV News

time28 minutes ago

  • CTV News

Report recommends diverting millions in surplus cash to replenish city's rainy day fund

Winnipeg's mayor is backing a plan that would send over $10 million to the city's rainy day fund after the reserve was nearly drained during the pandemic. In a report submitted to the executive policy committee, the city's public service recommended council adopt interim measures that would transfer surplus cash to top up the financial stabilization reserve. If approved, $3.7 million from the Southwest Rapid Transitway and Pembina Highway underpass projects, $5.4 million in operational surplus from Winnipeg Transit from 2024, and $1.8 million in surplus from Animal Services, also from 2024, would be diverted to the reserve. These interim measures would bring the account's balance to $36.4 million by the end of the year—a turnaround for the fund that sat at just $2.1 million in 2022 thanks to fallout from the pandemic, inflation, and major snow events. This onslaught of costs caused the fund to fall below the council-mandated six per cent of tax-supported operating expenditures, the report noted. That's about $85.1 million as of this year. The first measure—the surplus cash from the transitway and underpass reserves—requires a two-thirds council vote, while the others only require a majority. Another $6.9 million in new, unconditional funding from the One Manitoba Growth Fund would also be allocated to the account to help manage risks until the end of the year, the service proposed. This cash was not included in the 2025 budget. Mayor Scott Gillingham said the measures would be a responsible step to strengthen the city's financial foundation and protect services. 'The financial stabilization reserve helped carry the city through the pandemic, and now we're focused on building it back up,' he said in a news release. EPC will vote on the measure at a June 17 meeting.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store