The Keyera Energy–operated Simonette Gas Plant is a major gas-processing and liquids-handling facility located in Greenview County (Deep Basin / Montney region) in Alberta. Below is a blog-style overview of the plant, what Keyera has done recently, and why its latest licence amendment matters for producers, midstream infrastructure, and regional supply dynamics.
🌍 What is the Simonette Gas Plant?
- Core Function — Simonette is a sour-gas processing and liquids stabilization plant that handles raw gas and raw liquids from a broad gathering network serving Montney / Deep Basin production zones.
- Licensed Capacity (2024-2025 data) — The plant is licensed to process up to 450 MMcf/d of raw gas, and handle 27,000 barrels/day of condensate.
- Ownership — Keyera holds 100% ownership of the plant and associated gathering and pipeline infrastructure, following an acquisition program that closed around 2010-2011.
In short: Simonette is one of Keyera’s “workhorse” midstream assets — built to accept output from multiple wells, handle sour gas, recover NGLs and condensate, and stabilize liquids for transport or sale.
🚧 Keyera’s Expansion Moves — What Changed
Over time, Keyera has executed several expansion/upgrade phases to prepare Simonette for growing Montney and Deep-Basin volumes. Some of the most important developments:
- In 2013–2014, Keyera announced major capital commitments (~CAD $210 million) to:
- Build the 90-km sour-gas gathering pipeline from the Wapiti region (“Wapiti pipeline”) into Simonette, enabling capture of remote Montney production.
- Modify the plant — including addition of refrigeration and a condensate-stabilization facility — to increase raw-gas handling and liquids processing capacity.
- The upgrades were designed to enable an additional 100 MMcf/d of raw gas processing and 5,000 barrels/day of condensate handling.
- As a result, Simonette could handle rising volumes of gas and condensate — helping Keyera stay ahead of growing upstream Montney production. The company described the expansion as a move to provide “cost-effective enhancements to gathering, processing and liquids-extraction services.”
- Later, total licensed capacity reached the 450 MMcf/d gas / 27,000 bbl/d condensate handling levels as of 2024. Keyera Corp.+1
📄 Recent Licence Amendment — What It Means (Summary of Key Changes)
Based on the licence amendment you reviewed earlier, the expansion reflects:
- A major increase in raw-gas inlet capacity, condensate/NGL throughput, and compressed gas processing.
- Upgrades to sour-gas sweetening, sulphur recovery, compression, acid-gas injection, and compliance with environmental, emissions, and safety regulations.
- Enhanced ability to recover and deliver sales gas, C5+ liquids, LPG mix, and other valuable products — supporting producers with liquids-rich output.
Purpose of Amendment
The filing is a Licence Amendment to update Keyera’s gas processing and compression capabilities, including:
- Increased raw gas inlet capacity
- Installation of new compression equipment
- Adjusted H₂S specifications and sulphur handling
- Updated emissions, storage, and safety compliance
- Expansion of recovered product volumes
The plant is categorized as a D400 sour gas processing facility (≥1 t/d sulphur inlet).
Expanded Processing Capacity
Total Inlet Rates (New Licensed Limits)
- Raw Gas: 12,678 ×10³ m³/d
- Condensate: 5,565 m³/d
- Water: 1 m³/d
- Sulphur Inlet: 50 t/d
These capacity levels indicate a significant increase in gas throughput, liquids recovery, and sour gas handling.
Compression Expansion
The amendment notably adds new horsepower to support higher inlet volumes.
Installed Compression
- 16 total onsite compressors
- 14 gas-driven compressors
- 2 new gas-driven compressors, each 3,077 kW
- Total compression power: 30,132 kW
Pumps
- 27 electric pumps, totaling 893 kW
This is a major compression build-out, signaling increased throughput for both gas and liquids.
In effect: Simonette has moved from a “standard gas plant” to a fully optimized, high-capacity sour-gas + liquids processing hub — well-suited for modern Montney/Deep Basin gas plays with high liquids content.
🎯 Why This Expansion Matters — For Producers, Midstream & Market Dynamics
For Producers
- Reduced midstream bottlenecks — With Simonette’s upgraded capacity, producers in the Montney / Deep Basin region have more reliable and flexible processing options. That reduces risk around gas take-away and liquids handling, supporting more aggressive drilling and completions.
- Better value for liquids-rich wells — The enhanced condensate and NGL recovery infrastructure enables higher yields and stronger economics, especially for wells with substantial condensate / liquid content.
For Midstream & Infrastructure Planning
- Anchor asset for gathering & pipeline network — Simonette (with its associated pipelines) serves as a hub for a broad capture area including Wapiti, Montney, and other Deep Basin plays. Its expansion improves the economics and viability of future gathering corridors.
- Flexibility for scaling with upstream growth — As upstream activity increases (new wells, expanded output), Simonette’s spare capacity and upgraded facilities provide buffer — buy time for incremental pipeline or plant investments.
For Regional Supply & NGL Markets
- More stable gas and NGL supply — Higher throughput and enhanced liquids recovery supports stable supply of natural gas and natural-gas liquids (condensate, LPG, C5+), which matters for regional energy markets and midstream liquidity.
- Support for development of Montney / Deep Basin plays — The expansion eases a key bottleneck that might otherwise limit investor confidence in drilling new wells or ramping up production in the region.
🧱 What It Signals About Keyera’s Strategic Position
The expansion of Simonette underlines Keyera’s view of the Montney / Deep Basin region as a core growth area. By investing heavily — both in gathering infrastructure (pipelines) and processing facilities (sweetening, NGL/condensate stabilization, compression) — Keyera positioned itself as a primary midstream enabler for liquids-rich unconventional plays.
Owning 100% of the plant and associated pipelines gives Keyera operational flexibility and the ability to quickly respond to shifting producer needs. Keyera Corp.+2Annual Reports+2
In essence: Simonette isn’t just a gas plant — it’s a strategic hub. As drilling and completions ramp, having midstream infrastructure ready for sour gas and liquids-heavy production gives Keyera a competitive edge.
✍️ What to Watch Going Forward
- Utilization rates — As upstream activity grows, monitor throughput usage at Simonette (gas volumes and NGL/condensate output) to gauge how much spare capacity remains, and when additional infrastructure may be justified.
- New producers / wells in capture area — Look at drilling permit trends, especially in Montney/Deep Basin regions feeding into Simonette’s network. Rising permit counts may preface rising plant throughput.
- NGL / condensate outputs and market flows — Increased condensate or LPG output could feed into regional liquids markets — worth watching for supply, pricing, and downstream demand implications.
- Regulatory / environmental compliance & expansions — As sour-gas processing and acid-gas injection are sensitive operations, future amendments or new projects may hinge on regulatory conditions and emissions/ environmental constraints.
🔎 Final Thoughts
The upgraded Simonette Gas Plant represents more than a capacity bump — it’s a strategic anchor for Keyera in Alberta’s Deep Basin / Montney corridor. With sour-gas sweetening, NGL recovery, condensate stabilization and robust gathering infrastructure, Keyera has built a facility designed for the demands of modern, liquids-rich gas production.
For analysts, upstream producers, midstream investors, or anyone tracking North-American natural-gas supply chains, Simonette is a bellwether: its utilization and output will likely reflect — and influence — where drilling activity trends, how liquids supply evolves, and how midstream infrastructure adapts.
