CALGARY, June 20, 2013 /CNW/ - Keyera Corp. (TSX:KEY) (TSX:KEY.DB.A)
("Keyera") announced today a long-term, fee-for-service agreement to
provide sulphur handling and forming services at its Strachan gas plant
to Suncor Energy ("Suncor").
This agreement underpins planned modifications to the sulphur receipt
and forming facilities at the Strachan gas plant, including the
replacement of the existing sulphur forming facility with a new 1,500
tonne per day sulphur forming and degassing unit. This new unit will
use patented technology developed by Brimrock Group Inc. to provide for
more efficient conversion of molten sulphur into solid, premium sulphur
granules. Keyera will also be expanding its molten sulphur rail
off-loading capability and adding incremental de-gassing and storage
capacity to the site.
Suncor will be bringing the sulphur to the Strachan plant from its
facilities in the Fort McMurray area for processing. The volumes to be
delivered under the agreement are expected to utilize over half of the
sulphur forming capacity at the Strachan plant, with the balance of the
capacity being available to support the plant's sour gas processing
operations and to provide sulphur handling and forming services for
other potential customers.
The agreement with Suncor has a 10-year term and services are provided
on a take-or-pay basis. The anticipated cost of the modifications to
the sulphur facilities is approximately $40 million and the facilities
are expected to be operational in the first half of 2015.
"We're pleased to be able to provide Suncor with this value-added
service and believe Strachan is the ideal location to process sulphur,"
stated David Smith, President and Chief Operating Officer of Keyera.
"This agreement allows us to continue to provide premium sulphur
handling services at our Strachan gas plant while improving our
environmental footprint through the addition of newer, more
environmentally friendly and efficient technology."
About the Strachan Gas Plant
The Strachan gas plant, located approximately 200 kilometres southwest
of Edmonton, Alberta, offers significant raw gas processing services
for natural gas producers in west central Alberta, including NGL
extraction and sour gas handling. The Strachan gas plant is Keyera's
sulphur hub, providing sulphur handling services to customers including
sulphur recovery; sulphur forming; sulphur truck/rail loading and
off-loading; and a large sulphur block with storage capacity of
approximately 500,000 tonnes. With its connections to three major
gathering systems (Strachan North, Garrington Caroline and Burnt
Timber/Ram River), the Strachan gas plant is able to attract gas from a
large capture area covering approximately 2,500 square kilometres. As
one of Keyera's largest gas plants, it is a strategic part of the
Keyera gathering and processing infrastructure portfolio.
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 all conditions in the agreement with Suncor; obtaining
all necessary governmental approvals for the modifications and
additions to the Strachan gas plant; future operating results of the
assets; Keyera's ability to execute its strategic initiatives;
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 in developing and producing natural
gas; and 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.
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.
SOURCE: Keyera Corp.
