Keyera Announces Long-Term Sulphur Services Agreement and Facilities Expansion
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
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.
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
For further information about Keyera, please visit our website
atwww.keyera.com or contact:
John Cobb, Vice President, Investor Relations, or Julie Puddell, Manager,
Investor Relations E-mail:firstname.lastname@example.org Telephone: (403) 205-7670 Toll Free:
(888) 699-4853 Facsimile: (403) 205-8425
SOURCE: Keyera Corp.
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