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 United States.
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