The Company continues to advance its project to construct an amine processing train at the Musreau Deep Cut Facility, which will provide the capability to treat sour gas production at the facility instead of at well sites. This enhancement is expected to cost approximately $50 million, and will decrease equipping costs by over $1 million per well and reduce ongoing well operating costs. Design work for the amine facility has been completed and long lead-time components have been ordered. The amine processing train is scheduled to be on-stream in the first half of 2014, and will not impact the start-up of the Musreau Deep Cut Facility.
Smoky Deep Cut Facility
Paramount continues to participate in the deep cut expansion of the non-operated processing facility at Smoky (the "Smoky Deep Cut Facility"). The Company will have a 20 percent interest in the expanded facility, an increase from its 10 percent interest in the existing 100 MMcf/d dew point facility. The Smoky Deep Cut Facility will initially have 200 MMcf/d of capacity upon start-up, increasing to 300 MMcf/d through the later installation of an incremental 100 MMcf/d of compression. As a plant owner, Paramount has the option at any time to request installation of the additional compression, which would bring the Company's total owned capacity in the facility to 60 MMcf/d. Construction work commenced at the site in the third quarter of 2012 with the installation of pilings and foundations. NGLs bullets and compressors have been delivered and a significant portion of the major equipment is expected to be delivered prior to break-up, with the remaining components to be delivered later this year. The expansion is scheduled to be commissioned in the third quarter of 2014. Paramount's share of the Smoky Deep Cut Facility expansion costs is expected to total $65 million, of which approximately $30 million has been incurred to December 31, 2012.
Kaybob Processing Capacity
Upon completion of the Musreau Deep Cut Facility and the Smoky Deep Cut Facility, Paramount expects to have over 300 MMcf/d of net owned and third party firm-service processing capacity in the Deep Basin, estimated to be capable of yielding over 73,000 Boe/d of sales volumes when fully utilized. This capacity will be used to process Paramount's production as well as third-party unavoidably commingled volumes for a fee. Paramount currently has access to an incremental 10 to 12 MMcf/d of interruptible processing capacity and will continue to utilize such capacity in addition to its owned and firm-service capacity where available. The Company's current and future owned and firm-service processing capacity in the Deep Basin is as follows:
Net Net Gross Paramount Paramount Raw Gas Raw Gas Sales Capacity Capacity Capacity(1)--------------------------------------------------------------- (MMcf/d) (MMcf/d) (Boe/d)Current Processing Capacity---------------------------Musreau Refrig Facility 45 45 8,600Resthaven Facility 20 10 2,000Smoky Facility 100 10 2,500Kakwa Facility 40 4 720Firm Contracted Capacity 10 10 1,800---------------------------------------------------------------Subtotal - Current Capacity 215 79 15,620---------------------------------------------------------------Future Processing Capacity---------------------------Musreau Deep-Cut Facility 200 200 50,000Smoky Deep-Cut Facility 200 30 7,500---------------------------------------------------------------Subtotal - Future Capacity 400 230 57,500---------------------------------------------------------------Projected Total 615 309 73,120------------------------------------------------------------------------------------------------------------------------------(1) Estimated
