CALGARY, Jan. 19, 2012 /CNW/ - Keyera Corp. (TSX: KEY) (TSX: KEY.DB.A)
("Keyera") announced today it has closed its acquisition of Alberta
EnviroFuels ("AEF"), an iso-octane manufacturing business located in
Edmonton, Alberta.
As part of the transaction, Keyera acquired a 13,600 barrel per day
iso-octane manufacturing facility; pipelines associated with the
facility; and iso-octane sales agreements with major refiners. Keyera
also entered into multi-year agreements with Chevron Standard Limited
and its affiliates relating to sales, transportation, downstream
processing, and shipping of iso-octane. The purchase price of US$193.7
million, plus working capital of US$43.2 million primarily related to
butane and iso-octane inventories, was funded using existing cash flow
and Keyera's bank credit facility.
AEF is the largest iso-octane manufacturing facility in the world. The
facility uses butane as the primary feedstock and is connected by
pipeline through Keyera's Edmonton Terminal with the rest of Keyera's
NGL infrastructure in the Edmonton/Fort Saskatchewan area. Iso-octane
manufactured at AEF is shipped via the Trans Mountain Pipeline to
Chevron's Burnaby, B.C. refinery and onward to customers in
California. Iso-octane produced at the AEF facility is also sold to
refiners in Alberta.
About Keyera Corp.
Keyera Corp. (TSX: KEY) (TSX: KEY.DB.A) operates one of the largest
natural gas midstream businesses in Canada. Its business consists of
natural gas gathering and processing as well as the processing,
transportation, storage and marketing of natural gas liquids (NGLs) and
crude oil midstream activities.
Keyera's gas processing plants and associated facilities are
strategically located in the west central, deep basin and foothills
natural gas production areas of the Western Canada Sedimentary Basin.
Its NGL and crude oil infrastructure includes pipelines, terminals and
processing and storage facilities in Edmonton and Fort Saskatchewan,
Alberta, a major North American NGL hub. Keyera markets propane,
butane and condensate to customers in Canada and the United States.
