CALGARY, May 20, 2014 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera")
announced today that it has reached agreement with Enbridge Pipelines
(Athabasca) Inc. ("Enbridge") to participate in the Norlite Pipeline as
a 30% non-operating owner.
The Norlite Pipeline will transport diluent for producers from the
Edmonton/Fort Saskatchewan area into the Athabasca oil sands region.
The pipeline will initially be constructed from Enbridge's Stonefell
Terminal near Fort Saskatchewan northward to Suncor's East Tank Farm,
which is adjacent to Enbridge's Athabasca Terminal. Along the route,
Norlite will pass by both Enbridge's Cheecham Terminal and the
Keyera/Enbridge South Cheecham Rail and Truck Terminal.
Based on the current scope, the Norlite Pipeline will consist of a
20-inch diameter pipeline with an ultimate capacity of 280,000 barrels
per day. It will be anchored by throughput commitments from Suncor
Energy Inc. ("SEI"), Total E&P Canada Limited ("Total") and Teck
Resources Limited ("Teck") for the Fort Hills oil sands project and by
Suncor Energy Oil Sands Limited Partnership ("SEOSLP") for its
proprietary oil sands production. If Enbridge is successful in
securing additional long term commitments, the scope of the project
could be increased to a 24-inch diameter pipeline system, and could
also include a potential lateral pipeline to Enbridge's Norealis
Terminal. Enbridge anticipates finalizing the project scope later this
year, at which time the estimated capital cost will be determined. The
projected in-service date is the second quarter of 2017.
The throughput commitments SEI, Total, Teck and SEOSLP have made on the
Norlite Pipeline include transportation on Keyera's diluent system
between Edmonton and Stonefell. Keyera's diluent transportation system
will deliver into the Norlite Pipeline and provide Norlite shippers
with supply flexibility and liquidity while generating incremental
revenue for Keyera.
"We are pleased to be partnering once again with Enbridge to provide
necessary services to the oil sands sector," said David Smith,
President and Chief Operating Officer of Keyera. "The Norlite Pipeline
enhances Keyera's integrated service offering, enables us to
participate in a long-haul pipeline transportation system and provides
us with an opportunity to offer complementary diluent handling services
such as storage and rail off loading."
About Keyera Corp.
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 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 Keyera's
current expectations and assumptions relating to its business, the
environment in which it operates, its future operations, the
performance of its assets and the proposed Norlite Pipeline. As these
forward-looking statements depend upon future events, actual outcomes
may differ materially depending on factors such as: the design,
construction and operation of the Norlite Pipeline; producer
development plans and oilsands activity levels, including those of SEI,
Total, Teck and SEOSLP; the ability of Enbridge to secure all necessary
approvals and consents for the proposed Norlite Pipeline and all
associated facilities; the ability of Enbridge to secure appropriate
rights-of-way for the proposed Norlite pipeline system; producer
interest in the services being offered and willingness to contract for
services to support an increased scope; construction and input costs;
construction scheduling variables; availability of construction crews
and engineering services; ability to source required parts and
equipment; future operating results of the assets; the ability of
Keyera and Enbridge to execute each of their strategic initiatives in
relation to this project and associated services; interest of
producers, including SEI, Total, Teck and SEOSLP, in contracting for
additional Keyera services; 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 and oilsands activities; and potential delays or
changes in plans with respect to the project 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.
SOURCE Keyera Corp.
