CALGARY, March 21, 2014 /CNW/ - Keyera Corp. ("Keyera") (TSX:KEY)
announced today that it has entered into a long-term agreement with
Cenovus Energy Inc. ("Cenovus") to provide diluent handling services in
the Edmonton/Fort Saskatchewan area. This agreement will provide
Keyera with long-term, take-or-pay and fee-for-service revenues,
beginning in 2014.
"We are very pleased to strengthen our relationship with Cenovus" said
David Smith, President and Chief Operating officer of Keyera. "This
agreement solidifies our position as the premier provider of diluent
handling services in the Edmonton/Fort Saskatchewan area and supports
further expansions of our asset infrastructure in the region."
Keyera will provide diluent storage services which will increase up to
the equivalent of approximately 3 storage caverns by 2018. While
Keyera has the capacity to store these volumes at its Keyera Fort
Saskatchewan facility ("KFS") in the existing and new storage caverns
under development, this agreement will help underpin potential future
capital investment in new cavern development as part of Keyera's
ongoing storage development strategy. Transportation services will be
provided on Keyera's Fort Saskatchewan Condensate System between
various diluent supply sources and certain delivery points in the
Edmonton/Fort Saskatchewan area. As part of these transportation
services, Keyera will utilize its previously announced diluent receipt
connection off Kinder Morgan's Cochin Pipeline that is scheduled to be
completed in the second quarter of 2014.
About Keyera
Keyera Corp. (TSX:KEY) 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 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 Keyera's
current expectations and assumptions relating to its business, the
environment in which it operates, its future operations and the
performance of its assets. As these forward-looking statements depend
upon future events, actual outcomes may differ materially depending on
factors such as: satisfaction in diluent volume commitments;
construction variables for the Cochin pipeline receipt point, including
input costs construction scheduling, availability of construction crews
and sourcing of required parts and equipment; future operating results
of the assets; the ability of Keyera to execute each of their strategic
initiatives in relation to this project and associated services
(including its ability to proceed with further cavern development);
weather conditions; 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 associated with pipeline operations,
NGL extraction and oilsands activities; 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 it 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.
SOURCE Keyera Corp.
Keyera Corp.
