CALGARY, Dec. 15 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB; KEY.DB.A) ("Keyera") announced today that it is proceeding with construction of the Carlos pipeline south west from the Keyera Rimbey gas plant into the Hoadley region of central Alberta. The pipeline will allow producers in the area to deliver liquids-rich gas to the Rimbey plant, which is equipped to remove a high percentage of natural gas liquids ("NGLs") from the gas stream. The Hoadley area is undergoing active development, as multiple producers target liquids-rich natural gas reserves found in the Glauconite geological zone.
The 45-kilometre, 12-inch raw gas gathering pipeline is expected to be in service in the second quarter of 2011 and has already received all regulatory approvals. Total cost is estimated to be $30 million. To support this project, Keyera has secured a long-term, fee-for-service transportation and processing agreement with Bonavista Energy Trust, a major producer in the area.
"We are extremely pleased to work with our customers and extend our pipeline infrastructure into highly prospective regions like the Hoadley area", said Jim Bertram, President and CEO of Keyera. "With the construction of the Carlos pipeline project, we will be able to deliver NGL rich production in the area to our Rimbey plant, which is one of the most flexible and efficient gas processing plants in Canada. The Rimbey plant is able to extract a "deep cut" of NGLs, fractionate them into specification ethane, propane, butane and condensate, and deliver these products directly into the Edmonton/Fort Saskatchewan NGL energy hub. These services allow us to assist our customers in maximizing their production netbacks."
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: completion of the construction of the Carlos pipeline on time and on budget; future operating results of the Carlos pipeline and other Keyera assets; performance of the obligations under the transportation and processing agreement; future operating results of Keyera's business segments and the components of those results; Keyera's ability to execute its strategic initiatives; 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. Unless otherwise required by applicable laws, Keyera does not intend to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
For further information: For further information: about Keyera Facilities Income Fund, please visit our website at www.keyera.com or contact John Cobb, Director, Investor Relations or Bradley White, Investor Relations Advisor. E-mail: [email protected], Telephone: (403) 205-7670/Toll Free: (888) 699-4853, Facsimile: (403) 205-8425