09/10/2012 11:17 EDT | Updated 11/10/2012 05:12 EST

Keyera to build $110-million de-ethanizer at plant in Fort Saskatchewan, Alta.

CALGARY - Keyera Corp. (TSX:KEY) plans a $110-million upgrade at its gas processing plant in Fort Saskatchewan, Alta., allowing it to process ethane-rich natural gas liquids.

The company said Monday the project will allow it to produce 30,000 barrels per day of ethane for petrochemical producers in Alberta and a propane-rich stream of natural gas liquids for delivery to Keyera's fractionation facilities.

Keyera also said it has signed a long-term agreement with a large producer in the deep basin of west central Alberta for ethane-rich natural gas liquids for processing into specification products.

In addition to a de-ethanizer tower and other equipment, Keyera will dedicate an underground storage cavern for the project as well as build additional pipelines.

Keyera owns gas processing plants and associated facilities in Alberta including pipelines, terminals and processing and storage facilities.