CALGARY, Sept. 4 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN;
KEY.DB) ("Keyera") announced today its decision to significantly expand the
storage capacity at its NGL processing and storage facility in Fort
Saskatchewan, Alberta. The storage expansion project involves the mining of
four new underground storage caverns and the construction of a new brine pond.
When completed, the project is expected to add 3 million barrels of storage
capacity for condensate, propane, butane and other hydrocarbons. Overall
storage capacity is expected to increase by 37%, securing Keyera's position as
the leading storage provider in the Edmonton/Fort Saskatchewan energy hub.
Detailed design work is currently being completed. The four caverns and
the construction of the brine pond will be completed over a five to six year
period with each cavern being washed sequentially in eighteen-month intervals.
Costs of the overall project, including the new brine pond construction, are
expected to be approximately $70 million to $80 million.
Prior to beginning work on the first cavern, the necessary piping and
associated wash pumps must be installed and other site preparation work
completed. Timing of the expansion program will be staged to manage market
demand, brine storage and other factors. Under the current project schedule,
construction of the first cavern is expected to begin in early 2008 with the
cavern becoming operational in the second half of 2009. The cost of the first
cavern, including all preparatory work, is expected to be approximately
$18 million.
"This project will solidify our competitive position in Fort
Saskatchewan, one of the most strategic energy hubs in North America," said
Jim Bertram, President and CEO of Keyera. "Demand for storage, particularly
for condensate, is growing. This project is intended to address the expected
need for additional storage capacity over the next decade, as oil sands
development accelerates and the need for diluent continues to increase."
"Keyera's investments in additional storage, the addition of a fourth
pipeline connecting our Edmonton and Fort Saskatchewan facilities and the
expansion of our Fort Saskatchewan truck terminal will significantly enhance
the value of our storage facility, for Keyera and its customers," he added.
"With strategic connections to major pipelines delivering products in and out
of Edmonton and Fort Saskatchewan, Keyera expects to play a strategic role in
the development of marketing options tied to the oil sands."
Keyera's infrastructure in the Edmonton/Fort Saskatchewan area consists
of NGL fractionation, storage, terminals and pipelines. Keyera's Fort
Saskatchewan facility includes 30,000 barrels per day of NGL fractionation and
8.6 million barrels of existing underground NGL storage in ten separate
caverns. Keyera's Edmonton terminal, which will have four pipelines connecting
it to the Fort Saskatchewan facility, is a key logistics and pipeline hub,
receiving propane, butane and condensate from multiple sources for delivery to
key markets through its pipeline connections and rail and truck loading
facilities.
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.
%SEDAR: 00019203E
