CALGARY, Sept. 10, 2012 /CNW/ - Keyera Corp. (TSX:KEY) (TSX:KEY.DB.A)
("Keyera") announced today its plan to construct a 30,000 barrel per
day de-ethanizer at its NGL fractionation and storage facility in Fort
Saskatchewan, Alberta. The de-ethanizer will allow Keyera to process an
ethane-rich stream of NGLs (referred to as C2+ mix) creating
specification ethane for delivery to petrochemical producers in Alberta
and a propane-rich stream of NGLs for delivery into Keyera's
fractionation facilities. The estimated total gross cost for the
project, including the receipt facilities, C2+ mix storage and pipeline
interconnections, is approximately $110 million. Keyera is targeting
completion for the first half of 2014.
Keyera has entered into a long-term, fee-for-service agreement with a
large producer in the deep basin of west central Alberta, providing
commercial support for the project. Under the terms of the agreement,
the producer will furnish C2+ mix to Keyera for processing into
specification products, including ethane, propane, butane and
condensate. Keyera is currently in discussions with other producers
interested in contracting for the remaining de-ethanization capacity.
"This project is another example of our ability to utilize existing
facilities and operational expertise to capture new complementary
business opportunities," said Jim Bertram, Chief Executive Officer of
Keyera. "We work hard to provide timely, value added services to our
customers. This project is a great example, where we are providing the
benefit of incremental de-ethanization capacity for our customers along
with the optionality to sell ethane to any buyer on the Alberta Ethane
Gathering System ("AEGS"). This investment broadens Keyera's service
offering to producers and allows Keyera to better compete for an
increasing supply of NGLs in western Canada."
Detailed engineering work is currently underway and certain long-lead
items have already been ordered. In addition to the de-ethanizer tower
and ancillary equipment, Keyera will dedicate an underground storage
cavern to C2+ service, construct connections to C2+ receipt pipelines
in the area and build an ethane delivery connection to AEGS.
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),
the production of iso-octane and crude oil midstream activities.
Keyera's gas processing plants and associated facilities are
strategically located in the west central, foothills and deep basin
natural gas production areas of the Western Canada Sedimentary Basin.
Its NGL and crude oil infrastructure, including pipelines, terminals
and processing and storage facilities, as well as its iso-octane
facility, are located in Edmonton and Fort Saskatchewan, Alberta, a
major North American NGL hub. Keyera markets propane, butane,
condensate and iso-octane to customers in Canada and the United States.
Disclaimer
This document contains forward-looking statements based on management's
current expectations and assumptions relating to Keyera's business, the
environment in which it operates, anticipated timing and closing of the
acquisitions and the future operations and performance of the assets.
As these forward-looking statements depend upon future events, actual
outcomes may differ materially depending on factors such as:
satisfaction of conditions related to commercial arrangements in
support of the project; securing required pipeline interconnections;
obtaining all necessary governmental approvals for the de-ethanizer,
pipeline connections and associated facilities; future operating
results of the assets; Keyera's ability to execute its strategic
initiatives; decisions and actions of the co-owners of Keyera's Fort
Saskatchewan facility; construction and input costs; weather
conditions; construction scheduling variables; commodity supply/demand
balances and prices; activities of producers, competitors, customers,
business partners and others; overall economic conditions; access to
capital and financing alternatives; operational risks; potential delays
or changes in plans with respect to development projects or capital
expenditures or the results therefrom; the legislative, regulatory and
tax environment; 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.
Additional Information
For additional information on these and other factors, see Keyera's
public filings on www.sedar.com. The information provided in this release is given as of the date
hereof.
SOURCE: Keyera Corp.
