CALGARY, Sept. 17, 2012 /CNW/ - Keyera Corp. (TSX:KEY) (TSX:KEY.DB.A) ("Keyera") announced today that its wholly owned affiliate Keyera Energy Inc. has entered into an agreement to purchase an NGL midstream rail and truck terminal from ExxonMobil Oil Corporation. The facility is located in Hull, Texas and is connected via pipeline with ExxonMobil's Beaumont complex and Daisetta storage facility, and other NGL facilities in the Mont Belvieu energy hub. The terminal is expected to be used initially to handle receipt and delivery of propane, butane, iso-butane and NGL mix for delivery into North American markets. The transaction is subject to satisfaction of due diligence and other normal closing conditions.
"The terminal is an ideal fit with our existing infrastructure," said David Smith, President and Chief Operating Officer of Keyera. "Dedicated rail facilities near Mont Belvieu, combined with our rail infrastructure in Edmonton and South Cheecham in the heart of the Alberta oil sands, will allow us to enhance the logistics associated with the movement of propane, butane and condensate. Access to high-value markets in the U.S. and Canada is expected to provide additional new growth opportunities for Keyera."
The acquisition includes approximately 39 acres of land, four rail and six truck loading spots, and NGL storage tanks. Keyera currently plans to develop and expand the terminal in phases, as demand for terminal and logistics services evolves. Completion of the first phase, to reconfigure and place the existing equipment back into service, is expected in the first half of 2013, assuming no change in timing of execution or scope of work. Options for future phases include expanding the rail loading and offloading capacity, adding additional pipeline connections, and expanding the storage capability in order to expand NGL activities or handle other products such as condensate and diluted bitumen. Total cost of the acquisition and phase one modifications are anticipated to be approximately $10-15 million.
About Keyera Corp.
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 natural gas liquids (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.
ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world's growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is the largest refiner and marketer of petroleum products, and its chemical company is one of the largest in the world. For more information, visit www.exxonmobil.com.
This document contains forward-looking statements based on management's current expectations and assumptions relating to Keyera's business, the environment in which it operates, anticipated timing and closing of the acquisitions and the future operations and performance of the assets. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: satisfaction of all conditions in the agreement with ExxonMobil; completion of due diligence items including vessel inspections and an environmental assessment; obtaining all necessary governmental approvals for the Terminal and associated facilities; future operating results of the assets; Keyera's ability to execute its strategic initiatives; construction and input costs; weather conditions; construction scheduling variables; 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 in developing and producing natural gas; 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 will be realized or that they will have the expected consequences for or effects on Keyera.
For additional information on these and other factors, see Keyera's public filings on www.sedar.com. The information provided in this release is given as of the date hereof.
SOURCE: Keyera Corp.
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