Business
Keyera Facilities Income Fund Announces Long-Term Oil Sands Services Agreement with Imperial Oil
Keyera Facilities Income Fund Announces Long-Term Oil Sands Services Agreement with Imperial Oil
About this update from Imperial Oil Limited
[{"type":"text","content":"\n\n\n\nNov. 12, 2009 (Canada NewsWire Group) -- CALGARY, Nov. 12 /CNW/ -- Keyera Facilities Income Fund (\"Keyera\") (TSX:KEY.UN; KEY.DB; KEY.DB.A) announced today that it has entered into a long-term agreement with Imperial Oil Resources Ventures Limited (\"Imperial\") to provide diluent transportation, storage and rail offload services in the Edmonton/Fort Saskatchewan area for Imperial's Kearl oil sands project. Diluent is a light hydrocarbon, most often condensate, which is blended with bitumen to enable it to flow via pipeline to upgrading facilities. This agreement will provide Keyera with secure, long-term, fee-for-service revenues, beginning in late 2012, as well as the potential to generate significant incremental new business opportunities.Under the terms of the agreement, Keyera will transport diluent by pipeline from supply sources in the Edmonton area to a diluent delivery pipeline north of Fort Saskatchewan for delivery to the Kearl site located near Fort McMurray. Keyera will also provide diluent storage and rail offload services at the Alberta Diluent Terminal (\"ADT\") and the Edmonton Terminal, both owned 100% by Keyera, as well as at the Keyera operated Fort Saskatchewan Fractionation and Storage Facility (\"KFS\"). To provide these services to Imperial, Keyera will construct additional pipeline connections and pumping and metering facilities to extend and enhance its existing infrastructure.\"We are delighted to partner with Imperial, a recognized leader in the development of heavy oil and oil sands projects in Alberta\" said Jim Bertram, President and CEO of Keyera. \"The Kearl project is a world class oil sands development and our agreement with Imperial represents the next step in the development of our oil sands services growth strategy. The investments we have made to expand our facilities and develop new infrastructure over the past several years have strengthened our position in this region and enhanced our ability to handle the receipt, transportation and storage of diluent for oil sands producers such as Imperial. Our intention is to use this infrastructure to also provide cost effective services to other customers as the oil sands sector grows.\"Benefits to Keyera- The agreement will generate stable, long-term fee-for-servicerevenues for Keyera. A substantial portion of the fees earned underthis ag...