Keyera Evaluating Option to Acquire 30% Ownership Position in Norlite Pipeline
CALGARY, Oct. 30, 2013 /CNW/ - Enbridge Inc. ("Enbridge") today announced it is proceeding with development of the Norlite Pipeline system. As part of a Memorandum of Understanding between affiliates of Enbridge and Keyera Corp. (TSX:KEY) (TSX:KEY.DB.A) ("Keyera"), Keyera has the right to participate in the Norlite diluent pipeline as a 30% non-operating owner. A decision whether to participate will be made within 30 days.
As part of the service offering, the Norlite system may access certain existing capacity on Keyera's Fort Saskatchewan Condensate System. This would allow shippers to access the Enbridge Southern Lights condensate pipeline, as well as other sources of diluent available within Keyera's Fort Saskatchewan Condensate System, including its condensate storage facility.
"We are pleased to see the Norlite pipeline moving forward and are evaluating our potential involvement in the project", said David Smith, President and Chief Operating Officer of Keyera.
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 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 document contains forward-looking statements based on Keyera's current expectations and assumptions relating to its business, the environment in which it operates, its future operations, the performance of its assets and the proposed Norlite pipeline system. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: satisfactory evaluation of the economics of the proposed Norlite pipeline system and negotiation of construction, ownership and operating agreement (and other related agreements) with Enbridge; sanctioning of the Fort Hills oil sands project; producer development plans and oilsands activity levels; the ability of Enbridge to secure all necessary approvals and consents for the proposed Norlite pipeline system and all associated facilities; the ability of Enbridge to secure appropriate rights-of-way for the proposed Norlite pipeline system; producer interest in the services being offered; construction and input costs; construction scheduling variables; availability of construction crews and engineering services; ability to source required parts and equipment; future operating results of the assets; the ability of Keyera and Enbridge to execute each of their strategic initiatives in relation to this project and associated services; weather conditions; 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 associated with pipeline operations, NGL extraction and oilsands activities; 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 it will have the expected consequences for or effects on Keyera.
For additional information on these and other risk 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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