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 United States.
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.
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