The Rich Gas Premium agreements signed between ASC and the Canadian producers is expected to increase the NGLs value in near term and beyond 2015.
ASC will transport the liquids through Enbridge’s partly owned Alliance Pipeline to Aux Sable Liquid Products’ Channahon facility in Illinois to process and fractionate the liquids, and improve the Canadian producers’ access to the US markets and increases the value of the NGLs.
Aux Sable Canada president Tim Stauft said the company has responded to the growing interest from the producers to increase the value of liquids-rich natural gas.
"Aux Sable’s rapidly expanding Rich Gas Premium services deliver higher NGL netbacks to producers at a lower cost compared to the market alternatives in Western Canada," Stauft added.
Crocotta Energy, Seven Generations Energy and others have signed the Rich Gas Premium agreements joining the Trilogy Energy, Celtic Exploration, Crew Energy and Cequence Energy.
The agreements beyond 2015 are expected to transport approximately 450 million cubic feet per day of natural gas on the Alliance Pipeline.
Alliance Pipeline is natural gas transmission system that carries rich natural gas from northeastern British Columbia and northwestern Alberta through Saskatchewan, North Dakota, Minnesota, and Iowa to its terminus in Illinois.
