Keyera Corp. Announces Construction of South Cheecham Rail and Truck Terminal
and Agreement with Statoil
CALGARY, June 19, 2012 /CNW/ - Keyera Corp. ("Keyera") (TSX:KEY)
(TSX:KEY.DB.A) announced today that it will be proceeding with construction of
the Keyera South Cheecham Rail and Truck Terminal (the "Terminal"), located
approximately 75 kilometres southeast of Fort McMurray. The Terminal will be a
multi-purpose hydrocarbon rail and truck terminal, designed to support bitumen
producers within the Athabasca oil sands area.
Keyera previously announced that it was exploring the development of a
terminal in the South Cheecham area subject to sufficient customer interest in
the project. Today, Keyera entered into a minimum four-year fee-for-service
agreement with Statoil Canada Ltd. ("Statoil") which is sufficient to underpin
the construction of the first phase of the Terminal. The agreement with
Statoil includes provision for Keyera to provide diluent, dilbit and solvent
terminalling services through the Terminal. In addition to the Terminal,
Keyera will construct and operate pipeline connections between the Terminal
and Statoil and partner PTTEP's Cheecham Terminal, approximately 12 kilometres
north. Keyera will begin receiving revenue under the Statoil agreement upon
start-up of the Terminal in 2013.
"This investment at the Keyera South Cheecham Terminal will strengthen our
position in this region and enhance our ability to provide services to oil
sands producers such as Statoil," said Jim Bertram, Chief Executive Officer of
Keyera. "We are delighted to partner with a global energy company such as
Statoil and provide services that will support its world-class oil sands
projects. The Terminal represents the next step in the development of our oil
sands services growth strategy as we continue to deliver on our commitment to
provide various cost effective services to oil sands producers."
Keyera currently plans to develop the Terminal in phases as demand for
terminalling services evolves. In addition to the facilities for handling
diluent and dilbit at the Terminal, the initial phase will include a dilbit
pipeline connection to Enbridge's Cheecham terminal. Engineering and site
preparation for the first phase of development are already underway.
Completion of the first phase is expected in the first half of 2013 at an
estimated gross total cost of approximately $90 million. Delivery of equipment
and construction delays are the key variables in achieving the on-stream date.
Under the terms of a Memorandum of Understanding with Enbridge Inc., Enbridge
may elect to participate in the Terminal as a 50% joint venture partner.
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
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 Statoil; obtaining all necessary governmental approvals
for the Terminal and the associated facilities; future operating results of
the assets; Keyera's ability to execute its strategic initiatives;
construction and input costs; weather conditions; construction scheduling
variables; Enbridge Inc.'s decision on whether to participate as a joint
venture partner; 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.
For additional information on these and other factors, see Keyera's public
filings on www.sedar.com. The information provided in this release is given as
of the date hereof.
about Keyera, please visit our website atwww.keyera.com or contact:
John Cobb, Director, Investor Relations Email:email@example.com Telephone:
(403) 205-7670 / Toll Free: (888) 699-4853 Facsimile: (403) 205-8425.
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CO: Keyera Energy
NI: OIL ORDER
-0- Jun/19/2012 23:01 GMT
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