Keyera and Plains Solicit Interest in Construction of New Liquids Pipeline System

CALGARY, April 10, 2013 /CNW/ - Keyera Corp. (TSX:KEY) (TSX:KEY.DB.A) ("Keyera") and Plains Midstream Canada ULC, a wholly owned subsidiary of Plains All American Pipeline, L.P. (NYSE:PAA) ("Plains"), announced today they have entered into an arrangement to solicit interest in the construction of a jointly-owned liquids pipeline system in northwest Alberta. The proposed pipeline system, to be called the Western Reach Pipeline System, is anticipated to run from the Gordondale area of northwestern Alberta to Alberta's natural gas liquids ("NGL") energy hub in Fort Saskatchewan. Keyera and Plains have begun an open season process seeking non-binding nominations for volumes to underpin construction.

Keyera and Plains anticipate that the Western Reach Pipeline will consist of two new-build pipelines, with one dedicated to a mixture of propane, butane and condensate ("NGL mix") and the other intended for segregated condensate service. The Western Reach Pipeline, expected to be approximately 570 kilometres in length, will travel through the Deep Basin area of Alberta, which contains some of the most prospective liquids-rich geological horizons being developed in western Canada today, including the Montney and Duvernay zones.

Keyera and Plains believe that separate dedicated pipelines for NGL mix and segregated condensate will benefit customers, avoiding the costs associated with pipelines operating in batch mode. Customers on the Western Reach Pipeline will have the option to direct their NGL mix and segregated condensate to a variety of fractionation, storage, pipeline and terminal facilities at the Fort Saskatchewan energy hub.

The Edmonton/Fort Saskatchewan area is where the majority of Canada's NGLs are aggregated for fractionation and subsequent delivery to end-use customers. Both Keyera and Plains have significant NGL fractionation, storage, pipeline and terminal facilities in the Edmonton/Fort Saskatchewan area. These facilities enable customers to access high-value markets for their propane, butane and condensate production. Keyera operates the Fort Saskatchewan Condensate System, consisting of extensive, interconnected condensate pipeline, terminalling and storage facilities that provide customers with access, storage and end-market delivery options. Plains operates an extensive network of pipelines with connectivity to ship NGLs to Plains' eastern infrastructure assets, which include the Sarnia fractionation and storage facility, the Windsor and St. Clair storage facilities, and the Eastern Delivery Systems. Keyera and Plains are both evaluating expansions of their respective NGL fractionation facilities in Fort Saskatchewan to provide additional fractionation capacity for the growing volumes of NGLs produced in western Canada.

During the first stage of the open season, interested parties are required to complete and execute a confidentiality agreement and non-binding indicative nomination form. Deadline for submitting the documents is May 15, 2013. Additional details can be found on either the Keyera or the Plains website at www.keyera.com or www.plainsmidstream.com.

Keyera and Plains will each have a 50% ownership interest in the Western Reach Pipeline. Plains will be responsible for constructing and operating the system. Based on current plans, it is anticipated that the Western Reach Pipeline could be operational by late 2015, assuming timely completion of the open season and regulatory processes. The capital cost will be determined once volumes have been confirmed and the engineering design has been completed.

About Keyera and Plains

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 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.

Plains Midstream Canada provides value-added transportation, gathering, marketing, processing, fractionation, storage and terminalling services to customers by combining strategically located assets with extensive marketing and distribution expertise.

Plains' crude oil assets are located in the key producing regions of Canada. With approximately 5,000 kilometres of active gathering and mainline pipeline systems, 4.5 million barrels of total storage capacity, and 26 truck terminals, Plains' existing infrastructure provides flexibility in meeting customers' needs. The operations of their crude oil business are conducted throughout Alberta, Saskatchewan and Manitoba, as well as in North Dakota and Montana.

Located throughout Canada and the United States, Plains' NGL and LPG facilities include approximately 22 million barrels of useable storage capacity, 23 storage facilities, 18 rail terminals, eight fractionation facilities, six pipeline terminals, four straddle plants and two gas processing plants. Plains' strategically located assets, combined with strong marketing presence in the major LPG storage and trading centers, allow them the flexibility to provide the energy product solutions that their customers require.

Plains Midstream Canada, ULC is a wholly owned subsidiary of Plains All American Pipeline, L.P., a publicly traded Partnership (NYSE:PAA) with a market capitalization of over $18 billion.

Disclaimer

This document contains forward-looking statements based on Plains' and Keyera's current expectations and assumptions relating to the Western Reach Pipeline, their businesses, the environment in which they operate and their future operations and performance of their assets. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: negotiation of definitive joint venture agreements between Keyera and Plains; producer drilling plans and results in the region to be served; negotiation of satisfactory agreements with producers or other potential shippers in order to support construction and operation of the Western Reach Pipeline; obtaining all necessary approvals and consents for the Western Reach Pipeline and all associated facilities; securing appropriate rights-of-way for the Western Reach Pipeline; producer interest in the services being offered; 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; Keyera's and Plains' ability to execute their strategic initiatives; 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 natural gas processing and NGL extraction; regulatory approvals for future plant expansion opportunities; 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 or Plains will be realized or that they will have the expected consequences for or effects on Keyera and Plains.

Additional Information
For additional information on these and other risk factors, see Keyera's public filings on www.sedar.com and PAA's filings with the U.S. Securities and Exchange Commission. The information provided in this release is given as of the date hereof.

SOURCE: Keyera Corp.

Investors and Media
Keyera Corp.
John Cobb, Vice-President, Investor Relations, or
Julie Puddell, Manager, Investor Relations
Email: [email protected]; Telephone: [phone] / Toll Free: 888.699.4853

Plains All American Pipeline
Roy Lamoreaux, Director, Investor Relations
Email: [email protected]; Telephone: [phone] / Toll Free: 800.564.3036