CALGARY, Jan. 25 /CNW/ - Aux Sable Canada LP ("Aux Sable Canada") is pleased to announce its acquisition of the Crew Energy Inc. ("Crew") 25 mmcf per day Septimus Gas Plant ("Plant") near Fort St. John, British Columbia and receipt of regulatory approval for the Septimus Gas Pipeline. Both of these milestones support the strategic alliance that the companies entered into in August 2009 to provide a framework to develop the growing Montney resource play.
"We believe these two building blocks represent significant steps in the pursuit of our growth objectives for the northeast region of British Columbia" said W. J. (Bill) McAdam, President and Chief Executive Officer of Aux Sable Canada.
The Plant, which will be contract-operated by Crew, commenced operations in October 2009. Crew has the option to re-acquire a 50% interest in the Plant. The companies plan to expand throughput of the Plant over the course of the next few years.
To advance the strategic alliance, Aux Sable Canada will construct and operate a 20-inch, 20-kilometer pipeline connecting gas from the Plant to the Alliance Pipeline. The pipeline has been sized to accommodate potential future volumes from Crew and other regional producers.
On January 15, 2010, Aux Sable Canada received regulatory approval from the British Columbia Oil and Gas Commission to proceed with the construction of the sweet, natural gas pipeline.
Aux Sable Canada awarded the pipeline construction contract to Macro Industries Inc. ("Macro") of Fort St. John, British Columbia. Construction of the pipeline commenced today. The peak construction workforce associated with the project is expected to be 150, with a scheduled completion in the second quarter of 2010.
"Aux Sable Canada is providing a value added transportation option for producers' natural gas and natural gas liquids volumes in the region. This initiative will enhance our ability to provide these services" said T.L. (Tim) Stauft, Executive Vice President of Aux Sable Canada.
Aux Sable Canada is owned by Enbridge and Fort Chicago Energy Partners L.P. Aux Sable Canada's US affiliate, Aux Sable Liquid Products (www.auxsable.com) is owned by Enbridge, Fort Chicago Energy Partners and Williams. Aux Sable Liquid Products owns and operates a world-scale natural gas liquids extraction and fractionation facility near Chicago at the terminus of the Alliance Pipeline.
Macro of Fort St John, British Columbia is a leading mid-sized pipeline and facility construction company licensed in British Columbia, Alberta, North West Territories and the Yukon. For more information about Macro please visit www.macroindustries.ca.
SOURCE AUX SABLE LIQUID PRODUCTS INC.
For further information: For further information: Dorothy Golosinski, Manager, Regulatory and Public Affairs, Aux Sable Canada, (403) 508-5865, E-mail: firstname.lastname@example.org