CALGARY, Nov. 26, 2015 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera") announced today that it will suspend operations at its Caribou gas plant next week following a producer's decision to shut in gas production on December 1, 2015. The Caribou gas plant is Keyera's only gas plant located in Northeast British Columbia where producers receive NGX Spectra Station #2 pricing that has been affected by low North America natural gas prices and regional sales gas pipeline constraints. As a result, gas production in the area has become uneconomic and several producers have chosen to shut in production until pricing improves sufficiently.
The Caribou gas plant was constructed in 1997 and purchased by Keyera in 2004. In 2015, due to declining throughput, the plant's contribution to Keyera's adjusted earnings before interest, taxes, depreciation and amortization has been negligible.
Keyera Corp. (TSX:KEY) 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.
This news release contains forward-looking statements based on current expectations and assumptions made by the management of Keyera relating to, among other things, its business, the environment in which it operates and the future operations and performance of its assets. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: future operating results of the assets; commodity supply/demand balances and prices; activities of producers, competitors, customers, business partners and others; overall economic conditions; operational risks; 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. 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 of Investor Relations; or Nick Kuzyk, Manager of Investor Relations, Email: [email protected]; Telephone: 403.205.7670 / Toll Free: 888.699.4853