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
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
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
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, 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.
For further information about Keyera, please visit our website
atwww.keyera.com or contact:
John Cobb, Vice President, Investor Relations and Information Technology, or
Julie Puddell, Manager, Investor Relations E-mail:firstname.lastname@example.org, Telephone:
(403) 205-7670 / Toll Free: (888) 699-4853
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CO: Keyera Corp.
NI: OIL FIN VNT
-0- May/20/2014 11:00 GMT
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