CALGARY, Alberta, May 12, 2004: KeySpan Energy Canada (KeySpan) and Ferus Gas Industries Trust (Ferus) are pleased to announce the opening of a new, jointly owned, $12.4 million carbon dioxide (CO2) liquefaction facility.
Strategically located in central Alberta, the CO2 facility is adjacent to the KeySpan operated Rimbey gas plant. The new facility cleans and liquefies up to 285 tonnes per day of carbon dioxide that would otherwise be vented into the atmosphere. Following the purification process, the CO2 will be sold to growing energy and industrial markets.
The new facility is conveniently located in proximity to the major oil and gas servicing area in central Alberta. The plant is a welcome addition to the energy industry, which has historically struggled with unreliable liquid CO2 supply. The product will be distributed to the energy industry through an innovative trucking operation developed by Ferus. Initially, the facility will produce industrial grade liquid CO2, however it also has the capability of producing liquid CO2 for the food and beverage industry.
"The new facility is an example of how we are able to create incremental value from our facilities," said Jim Bertram, KeySpan's President and CEO. "This joint venture combines KeySpan’s significant infrastructure with Ferus’ expertise and provides us with an attractive diversification opportunity. Together we are combining good business with environmental excellence by reducing greenhouse gas emissions and turning waste product into cash flow.”
"We are excited about this new facility which will meet the growing CO2 demands in the energy sector in Alberta and also provide our customers with a reliable and competitively priced CO2 product," said Richard Brown, Ferus' President and CEO. "The opening of the Rimbey facility, the first of five industrial gas liquefaction facilities Ferus is constructing in Alberta this year, is a milestone event for our company."
About KeySpan Energy Canada
KeySpan 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). KeySpan's 13 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 in Alberta. They are pipeline-connected and offer a wide range of flexible services. KeySpan's NGL infrastructure consists of pipelines, processing and storage in Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub.
KeySpan Energy Canada is jointly owned by KeySpan Facilities Income Fund (TSX:KEY.UN), holding a 75% interest, and KeySpan Corporation (NYSE:KSE), holding the remaining 25%. Additional information on KeySpan Energy Canada and KeySpan Facilities Income Fund can be found on our website at www.keyspancanada.com.
About Ferus Gas Industries Trust
Ferus is a private mutual fund trust established for the production, marketing, storage and transportation of liquid carbon dioxide and liquid nitrogen to the energy and food industries. Both products are used
extensively in the completion of natural gas wells, and in the freezing of meats and vegetables. Liquid carbon dioxide is also used in miscible flood projects to enhance recovery of oil from reservoirs.
For additional information, please contact:
KeySpan Energy Canada
John Cobb, Director, Investor Relations
E-mail: John_Cobb@keyspancanada.com
Telephone: (403) 205-7670
Toll Free: (888) 699-4853
Facsimile: (403) 205-8303
Ferus Gas Industries Trust
Richard Brown, President and Chief Executive Officer
E-mail: DickBrown@ferus.ca
Telephone: (403) 517-8777
Toll Free: (866) 401-6861
Facsimile: (403) 206-6195
Note to media: KeySpan and Ferus will be hosting an open-house at the Rimbey facility on June 28, 2004. Please contact John Cobb or Richard Brown for more information.
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