CALGARY, May 2 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB)
("Keyera") announced today arrangements that will significantly enhance its
operational capabilities in Edmonton and Fort Saskatchewan, Alberta, an area
rapidly developing into western Canada's energy infrastructure centre. Keyera
has agreed to lease a 6-inch, 30 kilometre pipeline running between Fort
Saskatchewan and Edmonton from Taylor NGL Limited Partnership and intends to
use the pipeline to augment its Fort Saskatchewan pipeline system.
When associated construction is completed, Keyera will have four
pipelines delivering NGLs between its Edmonton logistics terminal and the
Keyera-operated Fort Saskatchewan fractionation and storage facility. The new
pipeline will provide significantly more operational flexibility, allowing
Keyera to deliver condensate and butane at increased rates into and out of the
Edmonton terminal and Fort Saskatchewan storage facilities. These operational
improvements are expected to add value to Keyera's existing storage services,
and the increased flexibility may support the development of new storage
caverns at Fort Saskatchewan in the future.
Keyera will invest approximately $6 million ($4.6 million net) to connect
the pipeline to its Edmonton and Fort Saskatchewan facilities. The pipeline is
expected to be in service by year-end 2007.
Keyera's infrastructure in the Edmonton/Fort Saskatchewan area consists
of NGL processing, storage, terminals and pipelines. Keyera's Edmonton
terminal 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. Keyera's Fort
Saskatchewan pipeline system connects the Edmonton terminal to its facilities
at Fort Saskatchewan, which includes 30,000 barrels per day of NGL processing
and 8.6 million barrels of underground NGL storage.
"This pipeline is the next step in the evolution of our NGL
infrastructure strategy in the Edmonton/Fort Saskatchewan hub", said Jim
Bertram, President and CEO of Keyera. "Our success in this area comes from our
ability to provide value-added services to our customers and we are
continually looking for ways to enhance our service offering. This pipeline
provides better access to our storage caverns in Fort Saskatchewan,
strengthening our position as a leading storage provider in the area. Improved
distribution of propane, butane and condensate augments the level of logistics
service that we are able to provide to customers and enhances our ability to
grow this business further."
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
