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 netbacks.
"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 Stauft.
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 connections.
ASC's strategy also includes building, owning and operating offgas processing facilities for the heavy oil upgrading and refining industry in Alberta.
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.
For further information:
Aux Sable Canada
Director, Regulatory & Public Affairs