CALGARY, Oct. 10, 2017 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera") today announced that it has entered into a 20-year midstream agreement (the "Agreement") with Chevron Canada Limited ("Chevron") to fractionate and handle natural gas liquids from Chevron's Kaybob Duvernay operations near Fox Creek, Alberta. The Agreement includes an area of dedication that is in excess of 230,000 gross operated acres and also includes take-or-pay commitments. Under the terms of the Agreement, Chevron will deliver approximately 50% of its natural gas liquids from the area of dedication to Keyera for fractionation, storage and terminalling services on a fee-for-service basis.
Upon Chevron's request during the term of the Agreement, Keyera will provide such services through individual long-term service agreements. Keyera expects to provide the requested services through its fractionation, storage and terminalling assets at its Keyera Fort Saskatchewan energy complex. Depending on the success and scale of Chevron's Duvernay program, Keyera may need to expand its facilities in the future.
"We are pleased to have been selected by Chevron to provide NGL midstream solutions, highlighting our commitment to provide reliable and competitive services with a focus on our customers' needs," said Dean Setoguchi, Keyera's Senior Vice President of the Liquids Business Unit. "With Chevron being one of the largest lease holders in the Duvernay resource play, the Agreement represents an exciting opportunity for Keyera. We look forward to working with Chevron in a long-term, mutually beneficial relationship."
Keyera Corp. (TSX:KEY) operates one of the largest midstream energy companies in Canada, providing essential services to oil and gas producers in the Western Canada Sedimentary Basin. Its predominantly fee-for-service based business consists of natural gas gathering and processing, natural gas liquids processing, transportation, storage, marketing, iso-octane production and sales, and an industry-leading condensate system in the Edmonton/Fort Saskatchewan area of Alberta. Keyera strives to provide high quality, value-added services to its customers across North America and is committed to conducting its business ethically, safely and in an environmentally and financially responsible manner.
This news release contains forward-looking statements based on Keyera's current expectations and assumptions made by the management of Keyera relating to its business, the environment in which it operates, its future operations and the performance of its assets, including the proposed Project. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: Chevron's future plans and development activities; future demand for fractionation, storage and terminalling services by Chevron and other customers; operating capacity at the Keyera Fort Saskatchewan complex; future operating results of the assets; the ability of Keyera to execute its strategic initiatives in connection with the service offering; availability and cost of engineering resources, construction crews and materials, as well as the accuracy of the construction schedule and cost estimates should future capital expansions be required; timely receipt of all necessary regulatory approvals or changes in requirements should future capital expansions be required; changes in production decline rates; weather conditions; commodity supply/demand balances and prices; activities of producers, competitors, customers, business partners and others; competitive dynamics affecting the Western Canada Sedimentary Basin; overall economic conditions; access to capital and financing alternatives; operational risks; environmental liabilities; 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 it 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. Readers are cautioned that they should not unduly rely on forward-looking information.
SOURCE Keyera Corp.
For further information: about Keyera, please visit our website at www.keyera.com or contact Keyera Corp: Lavonne Zdunich, Director, Investor Relations; Nick Kuzyk, Manager, Investor Relations, Email: firstname.lastname@example.org; Telephone: 403.205.7670 / Toll Free: 888.699.4853