Keyera Announces Long-Term Diluent Handling Agreement with Cenovus
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.
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
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.
about Keyera, please visit our website atwww.keyera.com or contact:
John Cobb, Vice-President, Investor Relations, or Julie Puddell, Manager,
Investor Relations Email:firstname.lastname@example.org; Telephone: 403.205.7670 / Toll Free:
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CO: Keyera Corp.
NI: OIL LOAN MNA ORDER
-0- Mar/21/2014 11:30 GMT
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