Calgary, December 7, 2005 – Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB) announced today that it has initiated construction of a 48 kilometre, 6 inch diameter, sour natural gas gathering pipeline in northeast British Columbia. The pipeline, known as the Caribou North Gas Gathering System, will deliver raw natural gas to Keyera’s Caribou gas plant for processing from a developing area north of the Buckinghorse River. To accommodate the additional gas from this pipeline, Keyera will expand the Caribou gas plant by 25 million cubic feet per day to 65 million cubic feet per day.
The Caribou North Gas Gathering System will expand the capture area of the Caribou gas plant by about 1,000 square kilometres. This area has seen increasing levels of land and drilling activity but has suffered from a lack of gas gathering infrastructure. A number of producers have provided commitments to the project.
Upon completion, Keyera will own approximately 85% of the pipeline and will be the operator. Gross capital expenditures will be approximately $21.5 million and Keyera anticipates completion by mid 2006.
"This project is a great example of how a midstream company can work with producers to develop a geologically prospective area,” said Jim Bertram, Keyera's President and CEO. “The Caribou North Gas Gathering System allows producers to connect gas that has already been discovered and to proceed with future drilling and land acquisition strategies, knowing that gathering and processing infrastructure exists to allow new discoveries to be connected quickly. For Keyera, the project is expected to be immediately accretive when complete and is another example of the many attractive internal growth projects available to us.”
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.
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 certain forward-looking statements that involve significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, many of which are beyond the control of Keyera. Some of these factors are discussed in Keyera’s public filings with Canadian Securities Administrators, filed on www.sedar.com. No assurances can be given that actual results will be consistent with these forward-looking statements.
For further information about Keyera Facilities Income Fund, please visit our website at www.keyera.com or contact:
John Cobb, Director, Investor Relations
E-mail: ir@keyera.com
Telephone: (403) 205-7670
Toll Free: (888) 699-4853
Facsimile: (403) 205-8303
