diff --git a/ApplicationCode/ProjectDataModel/Completions/RimFractureTemplate.cpp b/ApplicationCode/ProjectDataModel/Completions/RimFractureTemplate.cpp
index 4e6816a660..43d4ce936e 100644
--- a/ApplicationCode/ProjectDataModel/Completions/RimFractureTemplate.cpp
+++ b/ApplicationCode/ProjectDataModel/Completions/RimFractureTemplate.cpp
@@ -611,6 +611,16 @@ double RimFractureTemplate::dFactor() const
 //--------------------------------------------------------------------------------------------------
 double RimFractureTemplate::kh() const
 {
+    // kh           = permeability * h
+    // conductivity = permeability * h
+
+    auto values = widthAndConductivityAtWellPathIntersection();
+    if (values.m_conductivity != HUGE_VAL)
+    {
+        // If conductivity is found in stim plan file, use this directly
+        return values.m_conductivity;
+    }
+    
     return effectivePermeability() * fractureWidth();
 }
 
diff --git a/ApplicationCode/ProjectDataModel/Completions/RimFractureTemplate.h b/ApplicationCode/ProjectDataModel/Completions/RimFractureTemplate.h
index 9b43bec690..9fc666b6a5 100644
--- a/ApplicationCode/ProjectDataModel/Completions/RimFractureTemplate.h
+++ b/ApplicationCode/ProjectDataModel/Completions/RimFractureTemplate.h
@@ -44,6 +44,7 @@ public:
     FractureWidthAndConductivity()
         : m_width(0.0)
         , m_permeability(0.0)
+        , m_conductivity(HUGE_VAL)
     {
     }
 
@@ -60,6 +61,8 @@ public:
 
     // Unit : mD (milliDarcy)
     double m_permeability;
+
+    double m_conductivity;
 };
 
 //==================================================================================================
diff --git a/ApplicationCode/ProjectDataModel/Completions/RimStimPlanFractureTemplate.cpp b/ApplicationCode/ProjectDataModel/Completions/RimStimPlanFractureTemplate.cpp
index f6d27899be..921a088887 100644
--- a/ApplicationCode/ProjectDataModel/Completions/RimStimPlanFractureTemplate.cpp
+++ b/ApplicationCode/ProjectDataModel/Completions/RimStimPlanFractureTemplate.cpp
@@ -403,6 +403,7 @@ FractureWidthAndConductivity RimStimPlanFractureTemplate::widthAndConductivityAt
         const RigFractureCell& wellCell = m_fractureGrid->cellFromIndex(wellCellIndex);
 
         double conductivity = wellCell.getConductivtyValue();
+        values.m_conductivity = conductivity;
 
         std::vector<std::pair<QString, QString> > propertyNamesUnitsOnFile = m_stimPlanFractureDefinitionData->getStimPlanPropertyNamesUnits();