CALGARY, Dec. 20 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN;
KEY.DB) ("Keyera") announced today a project to extend its Caribou North Gas
Gathering System in early 2008. The 6-inch sour gas pipeline extension will
run in a northwest direction approximately 24 kilometres from the north end of
the existing pipeline and connect with an existing unutilized pipeline system
acquired by Keyera in the second quarter of 2007. This project will provide
pipeline infrastructure and processing access to about 500 square kilometres
of geologically prospective natural gas lands in the Trutch and Bougie areas
of British Columbia. The pipeline extension is expected to cost approximately
$8 million and, assuming reasonable winter weather, is expected to be
completed by the end of the first quarter of 2008.
Keyera's Caribou gas plant and gathering pipeline systems are located in
northeastern British Columbia, about 170 kilometres north of Fort St. John. In
2006, Keyera constructed the 50-kilometre Caribou North Gas Gathering System
to provide gathering infrastructure to producers north of the plant and Keyera
expanded the Caribou gas plant's processing capacity by 25 million cubic feet
per day to 65 million cubic feet per day.
"The area to the north of the Caribou plant is experiencing a very high
level of producer activity and recent land sale activity has been strong,"
said Jim Bertram, President and CEO of Keyera. "This is due in part to the
efforts of the Government of British Columbia to stimulate activity in the
province. This pipeline extension is the next step in our strategy for the
area, providing the necessary pipeline infrastructure to allow our customers
to tie in their production quickly. In anticipation of incremental production
from this new area, we have initiated detailed engineering for a second
expansion of the Caribou plant."
Keyera also provided an update on its 2007 capital spending. Keyera
expects that its 2007 growth capital outlook will be approximately
$30 million, down from the estimate of $40 to $50 million provided in early
November. This reduction results from a change in the timing of work
associated with a number of projects currently underway. This work is now
expected to occur early in 2008, rather than in the fourth quarter of 2007. As
a result, Keyera's 2008 growth capital spending is now forecasted to be
between $80 and $100 million.
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.
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 the ability of
Keyera to successfully implement strategic initiatives, whether such
initiatives yield the expected benefits, operating and other costs, future
operating results and the components of those 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.
For additional information on the factors which could cause actual
results or events to differ materially the forward-looking information
contained herein, 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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