CALGARY, Jan. 24, 2012 /CNW/ - Aux Sable Canada LP ("ASC") is pleased to
announce tailored midstream services for rich gas producers to maximize
netbacks that, for the first time, have resulted in multi-year
commitments for all natural gas liquid (NGL) commodities. These Rich
Gas Premium agreements now represent a material volume of the natural
gas shipped on the Alliance Pipeline system.
Aux Sable is actively working with producers (within an economic radius
of the Alliance Pipeline) to provide customized options for natural gas
and NGLs to reach US markets. Aux Sable offers Rich Gas Premiums and
other midstream services including construction and operation of
processing plants and pipelines for rich gas producers. These services
coupled with Aux Sable's ability to provide access to higher-valued
markets, optimize the resource value for producers.
In today's low natural gas priced environment, producers are seeking
creative ways to optimize exploration, drilling and development
activities. Improvements in drilling technologies and relatively high
oil prices have focused their development efforts on rich gas
resources. Aux Sable has successfully complemented these activities
with value-added solutions that can increase producers' rich gas
"Companies such as Crew Energy, Trilogy Energy, Cequence Energy,
Pengrowth Energy and many others have taken advantage of our
value-added solutions", said T.L. (Tim) Stauft, President of Aux Sable
Canada. "Our world-scale NGL extraction and fractionation plant in
Channahon, IL and our NGL proposition give us a competitive advantage
in providing value-added NGL recovery options to producers," said
Aux Sable's midstream services and custom-tailored solutions free-up
producers' financial capital allowing them to focus on drilling
activities and bring more natural gas liquids to market. Aux Sable
expects to grow its Rich Gas Premium business going forward.
About Aux Sable
For over eleven years, Aux Sable has delivered outstanding safety,
environmental and operating results. The company now has operations in
several locations in the US and Canada.
Aux Sable Canada
Aux Sable Canada is an active midstream gas processing company in
Western Canada, primarily along the Alliance Pipeline corridor.
Through the Alliance-Aux Sable dense phase gas system, ASC provides
value added solutions for producers to effectively develop and produce
NGL rich gas reserves. Since inception, the company has successfully
attracted rich gas to Alliance through inducements and new rich gas
ASC's strategy also includes building, owning and operating offgas
processing facilities for the heavy oil upgrading and refining industry
Aux Sable Canada is owned by Enbridge Inc. (50% equity interest),
Veresen Inc. (50% equity interest), Enbridge Inc. and Veresen Inc. each
own a 50% interest in the Alliance Pipeline.
Aux Sable USA
Aux Sable Liquid Products owns and operates one of the largest NGL
extraction and fractionation plants in North America. The facility is
located in Channahon, Illinois about 50 miles southwest of Chicago near
the eastern terminus of the Alliance pipeline. The facility is capable
of processing 2,100 mmcfd of gas and can produce about 102,000 barrels
per day of specification NGL products. Currently, all of the Alliance
gas is processed at the Channahon NGL Facility where Aux Sable has
shipper contracts to extract the NGLs.
Aux Sable Midstream recently acquired the Palermo Conditioning Plant
(previously known as the Stanley Conditioning Plant) and the Prairie
Rose Pipeline from a wholly owned subsidiary of EOG Resources, Inc. The
Prairie Rose Pipeline connects the Palermo Conditioning Plant to the
Alliance Pipeline, which delivers high energy dense phase gas to Aux
Sable's Channahon, Illinois Plant for NGL extraction and processing.
Aux Sable Midstream is owned by Enbridge Inc. (42.7% equity interest),
Veresen Inc. (42.7% equity interest) and Williams Partners (14.6%
equity interest). Enbridge Inc. and Veresen Inc. each own a 50%
interest in the Alliance Pipeline.
For more information, visit www.auxsable.com.
Image with caption: "Who We Are (CNW Group/Aux Sable Liquid Products Inc.)". Image available at: http://photos.newswire.ca/images/download/20120126_C6584_PHOTO_EN_9283.jpg
SOURCE Aux Sable Liquid Products Inc.
For further information:
Aux Sable Canada
Director, Regulatory & Public Affairs