CALGARY, July 6 /CNW/ - Aux Sable Canada LP ("Aux Sable Canada") is pleased to announce the execution of a long-term Offgas Processing Agreement with Shell Canada Products.
The Agreement secures a new feedstock source for Aux Sable Canada's Heartland Offgas Plant located in the City of Fort Saskatchewan, approximately 20 kilometers northeast of Edmonton. The Plant was originally designed to process offgas from the nearby BA Energy Upgrader, which ceased construction in 2008.
"The Agreement with Shell is consistent with our strategy to be a leader in the processing of upgrader and refinery offgas in Alberta," said W. J. (Bill) McAdam, President and CEO of Aux Sable Canada.
The Plant, owned and operated by Aux Sable Canada, will be licenced to process up to 20 million cubic feet per day of offgas and will produce hydrogen, ethane and a propane-plus mix. All of the products from the Plant will be delivered to Shell's Scotford Refinery via pipeline, approximately 3 kilometers to the northeast.
Modifications to the Heartland Offgas Plant will be made once an amendment to the existing Industrial Development Permit is received from the Energy Resources Conservation Board. Aux Sable expects the Plant to be operational in the summer of 2011.
Some of the benefits of processing refinery or bitumen upgrader offgas include a reduction in greenhouse gas emissions and an increase in the availability of ethane as feedstock to Alberta's petrochemical sector. "Offgas has the potential to be a growing source of new feedstock supply for Alberta's petrochemical industry. Aux Sable will be the first company in Alberta to extract ethane and hydrogen from a refinery or upgrader offgas stream," said T.L. (Tim) Stauft, Executive Vice President of Aux Sable Canada.
Aux Sable Canada remains committed to adding value to Alberta's refining, upgrading and petrochemical industries. Aux Sable Canada expects the ethane from the Plant to be the first volumes sourced from offgas to qualify for credits under the Alberta Government's Incremental Ethane Extraction Policy.
Aux Sable Canada is owned by Enbridge and Fort Chicago. Aux Sable Canada's US affiliate, Aux Sable Liquid Products, is owned by Enbridge, Fort Chicago 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.
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: email@example.com; Corporate website: www.auxsable.com