Earlier this week Alberta's provincial government approved the details of the Incremental Ethane Extraction Policy (IEEP), to provide incentives for value-added production and the use of ethane in the province through royalty credits. As a result, the province expects an additional 60,000 and 85,000 bpd of ethane to be produced over the next five years.
This policy will provide incentives for value-added production and the use of ethane in the province, spurring supply of ethane available to petrochemical companies. This will allow them to fill up unused production capacity within their facilities and encourage investment in new capacity.
Keyera Facilities Income Fund has initiated a project to extract ethane from the raw natural gas processed at its Rimbey gas plant in west central Alberta. The US$26M project will involve plant modifications and the construction of a 32 km pipeline to deliver the product to existing ethane gathering infrastructure in Alberta. When operational, Keyera will extract about 5,000 barrels per day of ethane. Nova is developing plans for a new Fort Saskatchewan ethane plant details of which are likely to be disclosed later this year. Besides these two projects, four other projects have been lined up to use the incentive program.
16-Jul-07 
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