CALGARY, May 1 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB)
("Keyera") announced today that it has closed two acquisitions announced
earlier this year.
On May 1, Keyera closed the acquisition of a 35.6% ownership interest in
the ATCO West Pembina gas plant from three plant owners for a purchase price
of approximately $26 million. Keyera is now the operator of the plant. The
West Pembina gas plant has 145 million cubic feet per day of sour gas
processing capacity, "deep cut" natural gas liquids extraction capabilities
and significant sulphur handling capacity. The plant currently has unutilized
sweet and sour processing capacity and has approximately 70 kilometres of
gathering pipelines, which provide an extensive reach into the gas producing
areas of the Pembina region.
In late March, Keyera closed the acquisition of a distribution terminal
in the Edmonton/Fort Saskatchewan energy hub for $32 million as part of a
$50 million growth initiative. The facility, to be known as the Alberta
Diluent Terminal ("ADT"), will be used primarily to handle condensate, for use
as diluent in the oil sands sector. Keyera subsequently agreed to acquire an
adjacent 8-acre parcel for an additional $3.3 million. The ADT will
significantly increase Keyera's condensate import capacity in the
Edmonton/Fort Saskatchewan hub and will enable Keyera to continue as a key
diluent supplier in Alberta as bitumen production grows. Keyera intends to
connect its Edmonton terminal and its Fort Saskatchewan fractionation and
storage facility to enable product to be delivered to market on a number of
pipelines, or to Keyera's storage facility in Fort Saskatchewan. The ADT will
also significantly enhance the operational flexibility of Keyera's existing
logistics and storage businesses in the area.
About Keyera Facilities Income Fund
Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB) 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 and foothills natural gas production
areas of the Western Canadian 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.
Advisory
This document contains forward-looking statements that involve known and
unknown risks and uncertainties, many of which are beyond Keyera's control.
The forward-looking statements are based on management's current expectations
and assumptions relating to Keyera's business and the environment in which it
operates. As the results or events predicted or implied in these
forward-looking statements depend upon future events, actual results or events
may differ materially from those predicted. Some of the factors which could
cause actual results or events to differ materially include Keyera's ability
to successfully implement planned initiatives, whether those initiatives yield
the expected benefits, the impact of government and industry initiatives,
operating and other costs, future operating results, fluctuations in the
demand for natural gas, NGLs and crude oil, the activities of producers,
competitors and others, the weather, overall economic conditions and other
known or unknown factors. There can be no assurance that the results or
developments anticipated by Keyera will be realized or that they will have the
expected consequences for or effects on Keyera. For additional information on
these and other factors, see Keyera's public filings on www.sedar.com. Unless
otherwise required by applicable laws, Keyera does not intend to publicly
update or revise forward-looking statements, whether as a result of new
information, future events or otherwise.
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