BluePipelinesBigoray

PRINT  Text Size: S M L  Share

Home / About Keyera / Structure & History

Structure and History

The following diagram illustrates Keyera's current corporate structure.

 2017 Structure

Milestones in our History 

 Pre-1998

A large portion of Keyera's western Canadian assets were built and operated by Gulf Canada Resources Limited and Chevron Canada Resources. 

December 1998

Gulf sold a 50% interest in its midstream division assets to a wholly-owned subsidiary of KeySpan Corporation and together the two companies formed a partnership called Gulf Midstream Services to operate the business.

September 2000

Gulf sold its remaining interest in Gulf Midstream Services to KeySpan Corporation and Gulf Midstream Services and the partnership was renamed KeySpan Energy Canada Partnership.

May 2003

Keyspan Facilities Income Fund, the predecessor to Keyera Corp., was created as an unincorporated open-ended trust under the laws of the Province of Alberta. Units of the Fund began trading on the Toronto Stock Exchange under the trading symbol KEY.UN on May 30, 2003 after closing of the Initial Public Offering of 17 million units. After the IPO, KeySpan Corporation owned a majority interest in the Fund's primary operating partnership and the Fund indirectly owned 39%.

April 2004

The Fund completed a second public offering of 15.617 million units. Proceeds from this second offering were used to acquire a 35.91% interest in the primary operating partnership from KeySpan Corporation. As a result of this acquisition, the Fund increased its indirect interest in that partnership to 75%.

June 2004

The Fund completed a third public offering of 10.72 million units and $100 million of convertible debentures (KEY.DB). (Note: these debentures matured on June 30, 2011.) The proceeds of this offering were used to fund a portion of the purchase price associated with the acquisition of EnerPro Midstream Company from Chevron Canada Resources. With this acquisition came all of Chevron's western Canadian gas gathering and processing facilities, as well as its NGL infrastructure assets.

July 2004

 The Fund contributed the assets of EnerPro to the operating partnership, thereby increasing its indirect interest in the partnership to 82.56%.

December 2004

 The Fund purchased KeySpan Corporation's remaining interest in the operating partnership and the operating partnership became a wholly owned subsidiary of the Fund.

February 2005

With KeySpan Corporation no longer holding an ownership interest in the operating partnership, the name was changed to Keyera. The name Keyera was selected because it captured the two important aspects of the Fund's evolution and vision for its business: Key facilities for a new era. Therefore, effective February 2, 2005, KeySpan Facilities Income Fund became Keyera Facilities Income Fund.

2005-2007

Keyera completed several strategic acquisitions and initiated a multi-year growth strategy of enhancing NGL infrastructure to enhance operational flexibility and expand Keyera's service officering to Alberta's growing oil sands sector. The acquisitions included the purchase of additional interests in the Strachan gas processing plant and related facilities, the Medicine River Pipeline and the Rimbey Gull Lake pipeline. Keyera also purchased an 18 kilometre gas gathering pipeline and related assets in the North Trutch/Bougie area of northeast British Columbia adjacent to Keyera‘s Caribou North Pipeline and a 38 kilometre sales gas pipeline running northeast of the Brazeau River gas plant. Keyera also continued to expand its presence in the United States with the incorporation of Keyera Energy Inc. and the acquisition of four propane terminals.

January 2006

The Fund took an initial step to begin streamlining its structure by amalgamating EnerPro and Keyera Energy Management Ltd. (the Administrator of the Fund and managing partner of the operating partnership).

May 2007

Keyera completed the reorganization of Rimbey Pipe Line Co. Ltd. to form a new limited partnership called Rimbey Pipeline Limited Partnership. As part of this restructuring, Keyera was able to acquire all remaining third party interests, making it a wholly-owned subsidiary.

January 2008

Unitholders of the Fund approved an internal reorganization to streamline the Fund's overall structure, consolidate its ownership interests, achieve greater accounting, legal, reporting, and income tax simplicity and enhance tax planning flexibility. In connection with this reorganization, the Fund was able to eliminate a number of subsidiaries from its structure, and the primary operating partnership was amended to become a limited partnership.

2008

Keyera acquired a strategically located property with above ground storage capacity and rail access near its Edmonton Terminal. This property has since been developed into the Alberta Diluent Terminal. In addition, Keyera acquired ownership interests in the West Pembina gas plant, the Judy Creek NGL Pipeline system and the Bonnie Glen crude oil and condensate system (including the Wizard Lake pipeline). Keyera acquired 100% ownership of the Nevis gas plant, along with 100% of the related gathering pipelines and associated compression facilities; and increased its ownership interests in the Rimbey gas plant, the Brazeau River gas plant (including an associated gathering system and compression facilities) and the Brazeau North East Gas Gathering System. During 2008, Keyera also implemented a comprehensive internal reorganization to simplify its structure and reduce compliance and administrative costs.

December 2008

The Fund completed a fifth public offering of $80 million of convertible debentures (KEY.DB.A). The proceeds of this offering were used to finance several acquisitions and growth projects undertaken by the Partnership and its subsidiaries earlier that year, including the acquisition of the Nevis gas plant and associated facilities and increased ownership interests in the Rimbey, Brazeau River and West Pembina gas plants.

2009

Keyera continued its focus on building and growing its core businesses. During the first half of the year, Keyera completed construction of the ethane extraction project at the Rimbey gas plant and increased its ownership in the Strachan gas plant to 91% (from 86%). Later in the year, Keyera acquired an additional 33% interest (to 54%) in the West Pembina gas plant and announced significant long-term fee-for-service agreements with Imperial Oil to provide diluent transportation, storage and rail offload services for Imperial‘s Kearl oil sands project, as well as segregated solvent handling services.

2010

Keyera expanded its gathering and processing presence in west central Alberta through several acquisitions, including 100% interests in the Simonette gas plant, the North Cabin pipeline, and the Solomon and Cabin Creek facilities; a 36.5% ownership interest in the Minnehik Buck Lake gas plant and related assets; a 22% ownership interest in the Talisman-operated Edson gas plant; and additional ownership interests in the Keyera-operated West Pembina, Nordegg River, Gilby, and Brazeau River gas plants. In addition to these acquisitions, Keyera completed a 40 MMcf/d expansion of its Caribou gas plant. Throughout 2010, Keyera continued to refine and execute its development plans for the delivery of condensate services in the Edmonton/Fort Saskatchewan area. Regulatory approvals were received and construction was initiated on a connector pipeline from the Enbridge Southern Lights Pipeline to Keyera‘s Edmonton Terminal and a new pipeline segment connecting Keyera‘s existing Fort Saskatchewan facilities to the Polaris pipeline. Keyera also entered into a long-term oil sands diluent handling agreement with Husky for the Husky-operated Sunrise oil sands project.

January 2011

In response to changes in tax laws, the Fund converted from an income trust structure to a corporate structure. The conversion was completed pursuant to a plan of arrangement that was approved by unitholders of the Fund on May 11, 2010.

2011

Keyera acquired an additional 6.7% interest (to 98%) in the Strachan gas plant, an additional 14% interest (to 95%) in the Bigoray gas plant, an additional 12% interest (to 99%) in the Paddle River gas plant and an additional 8.6% interest (to 45%) in the Minnehik Buck Lake gas plant. Keyera also completed construction of the Carlos pipeline which began delivering production from the liquids-rich Glauconite formation in the Hoadley area to the Rimbey gas plant.

January 2012

Keyera acquired Alberta EnviroFuels from Chevron Standard Limited and Neste Canada Inc. The acquisition included a 13,600 barrel per day iso-octane manufacturing facility, pipelines associated with the facility, and iso-octane sales agreements with major refiners in Canada and the United States.

March 2012

Keyera completed another public offering of a total of 4,715,000 common shares at $43/share. 

November 2012

Keyera announced over $330 million of growth capital initiatives, including the construction of a de-ethanizer at its Fort Saskatchewan fractionation facility, and the installation of a turbo expander unit at the Rimbey gas plant. It also entered into an agreement to acquire a rail and truck terminal in Hull, Texas to handle receipt and delivery of propane, butane and NGL mix.

October 2013

Keyera completed construction and officially opened the South Cheecham Rail and Truck Terminal located approximately 75 kilometres southeast of Fort McMurray. A four year fee-for-service agreement with Statoil Canada Ltd.  underpinned the first phase of construction with potential for additional phases as demand for terminalling services in the area evolves. 

 May 2014

Keyera acquired an 85% ownership interest in the West Pembina 6-28 gas plant, along with the corresponding working interest in lands from which gas is produced into the plant; an additional 4.6% ownership interest in the Bigoray gas plant (bringing its ownership in that plant to 100%), along with certain associated reserves which produce into the plant; and varying ownership interests in certain associated oil batteries, compressors and gathering pipelines.   Keyera also reached an agreement with Enbridge Pipelines (Athabasca) Inc. to participate in the Norlite Pipeline as a 30% non-operating owner. The Norlite Pipeline will transport diluent for producers from the Edmonton/Fort Saskatchewan area into the Athabasca oil sands region and is backed by a long-term take-or-pay agreement with owners of the Fort Hills oil sands project.

December 2014 

Keyera agreed with Bellatrix Exploration Ltd. to participate in a new deep-cut gas plant as a 35% owner and related pipelines currently being constructed by Bellatrix in the Alder Flats area of west central Alberta. Keyera has also agreed to participate as a 60% owner in the Zeta Creek gas plant, being constructed by Velvet Energy in the West Pembina area of Alberta. Keyera acquired a 70.79% ownership interest in the Ricinus deep-cut gas plant in west central Alberta.

February 2015

Keyera announced a two-for-one split of its outstanding common shares. The record date for the share split will be April 1, 2015. Each Keyera shareholder will receive one additional common share of Keyera for each common share held on the share split record date.

March 2015

Projects completed during the year to expand the gathering and processing infrastructure included the Simonette gas plant expansion and condensate stabilizer, the Twin Rivers pipeline system, the turbo expander at the Rimbey gas plant and the newly constructed Alder Flats and Zeta Creek gas plants. Projects completed to enhance the natural gas liquid handling capabilities included the de-ethanizer at Keyera's Fort Saskatchewan facility and the Josephburg Rail Terminal, which provides a much needed outlet for propane in Western Canada. During the year, Keyera also entered into a 50/50 joint venture with Kinder Morgan, Inc. to build the Base Line Terminal, an above ground crude oil storage terminal near Edmonton.

May 2015 

Effective with the May dividend, Keyera amended and reactivated the Premium DividendTM component of its Premium DividendTM and Dividend Reinvestment Plan (the "Plan").

August 2015  Keyera announced the acquisition of a 50% interest in the southernmost portion of the diluent Grand Rapids Pipeline from Grand Rapids Pipeline Limited Partnership, an affiliate of TransCanada PipeLines Limited and Brion Energy Corporation. Keyera’s total contribution to the joint venture was expected to be approximately $140 million, with Keyera becoming the operator of the facilities once completed in the second half of 2017. 

   

December 2015  Keyera increased and extended its unsecured revolving credit facility to $1.5 billion from $1 billion, with the potential to increase to $1.85 billion subject to certain conditions. The term of the Credit Facility was extended to December 6, 2020.
May 2016  Keyera entered into agreements with a subsidiary of a large creditworthy multi-national producer for construction of an estimated $600 million natural gas gathering and processing complex in the Wapiti area south of Grand Prairie, Alberta. Subject to final sanctioning, the Project includes a sour gas processing plant with acid gas injection capabilities, condensate processing facilities, associated gathering systems and field compressor stations, with the first phase targeted to start up in mid-2019.

 

Keyera also successfully completed the public offering of 9,487,500 common shares priced at $36.35 each, for gross total proceeds of approximately $345 million.  
June 2016  Keyera concluded a $60 million issuance of long-term notes pursuant to an uncommitted private shelf agreement with the Prudential Capital Group.

Also, the fractionation expansion at Keyera’s Fort Saskatchewan energy complex was completed near the end of the month.  The incremental 35,000 barrels per day of fractionation capacity was completed for a net cost of $153 million.
August 2016  Keyera closed an acquisition from Bellatrix Exploration Ltd. for an additional 35% ownership interest in the Alder Flats gas plant and its associated gathering pipelines, bringing Keyera’s total ownership to a 70% interest. The cost of the acquisition was $112.5 million, which included the additional working interest in the facilities, a 10-year take-or-pay commitment, an area dedication agreement and a prepayment of 35% of the estimated future construction costs of Phase 2 of the Alder Flats Plant.  
October 2016  Keyera concluded a private placement of 10-year and 12-year senior unsecured notes totaling $300 million with a group of institutional investors in Canada and the United States. The Notes were issued in two tranches with $200 million bearing interest at 3.96% and maturing on October 13, 2026 and $100 million bearing interest at 4.11% and maturing on October 13, 2028. Proceeds from the Notes were used to repay short-term debt incurred to execute Keyera's capital program and for general corporate purposes.

January 2017 

Keyera acquired 1,290 acres of undeveloped land in the Industrial Heartland area new Fort Saskatchewan.

 

February 2017 

Keyera announced over $245 million of growth capital initiatives, including a new NGL gathering pipeline system (“Keylink”) that will provide producers with a pipeline alternative for transporting NGLs from a number of Keyera gas plants and a project to expand the liquids handling capacity at the Simonette gas plant. Both projects are expected to be operational by mid 2018.   

May 2017  Keyera sanctions the first phase of its natural gas and gathering processing complex in the Wapiti area south of Grand Prairie, Alberta. The first phase includes a 150 million cubic feet per day sour gas processing plant and is supported by agreements with a primary customer. Operations are targeted to start up in mid 2019.   
June 2017 

Construction of the Norlite pipeline was completed, which delivers diluent from the Fort Saskatchewan area to certain oil sands projects. This is a joint venture with Enbridge with Keyera having  a 30% non-operating ownership interest.

 
September 2017 Keyera concluded a private placement of 10-year senior unsecured notes totalling CAD$400 million with a group of institutional investors in Canada and the United States. The Notes bear interest at 3.68% and mature on September 20, 2027. Proceeds from the Notes were earmarked to repay short-term debt incurred to execute Keyera's capital program and for general corporate purposes. 
October 2017  DBRS Limited assigned Keyera an Issuer Rating of "BBB" with a "Stable" trend and S&P Global assigned Keyera a Long-term Corporate Credit Rating of "BBB/Stable".
November 2017  Keyera announced plans to construct the North Wapiti Pipeline System for producers developing the Montney north of the Wapiti River.  For approximately $120 million, the Pipeline System extends the capture area of Keyera's Wapiti Gas Gathering and Processing Complex and includes a 12-inch sour gas gathering pipeline, an 8-inch emulsion line and a compressor station. The Pipeline System is underpinned by a long-term, take-or-pay natural gas gathering and processing agreement with privately owned Pipestone Oil Corp. The Company also entered into a separate long-term agreement with Keyera to secure fractionation and marketing services for its natural gas liquids extracted at the Wapiti Gas Plant. The Pipeline System is expected to be in-service in the second half of 2019, pending the final routing and timely receipt of all regulatory approvals and permits.