07:52 AM EDT, 06/09/2025 (MT Newswires) -- Keyera ( KEYUF ) reported Monday the formal sanctioning of the KAPS Zone 4 extension of its existing KAPS pipeline, strengthening the company's connectivity to the liquids-rich Montney regions of northeast British Columbia and northwest Alberta.

The company expects the 85-kilometer extension to cost $220 million, which includes investments in additional pumping capacity on KAPS Zones 1 to 3.

Keyera ( KEYUF ) said the project is expected to enter service in mid-2027.

"This project reflects strong customer demand for our fully integrated service offerings and our ability to connect to valuable end-markets," said Dean Setoguchi, president and CEO of Keyera ( KEYUF ).

The project is supported by long-term transportation agreements with several investment-grade Montney producers, according to Keyera ( KEYUF ).

Keyera ( KEYUF ) said it 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.

"By enhancing connectivity and optionality, Zone 4 strengthens our competitive position and delivers greater value to our customers," Setoguchi said.

The company recently entered an agreement with AltaGas ( ATGFF ) to export an additional 12,500 barrels per day of natural gas liquids via AltaGas' ( ATGFF ) west coast export facilities starting in 2028.