Upon completion of these transactions, Keyera will have ownership interests in 17 gas plants and will increase its net gas processing capacity by 9%, or 151 million cubic feet per day. All of the incremental capacity is able to extract NGLs and handle sour gas.
Portions of the acquisitions are subject to rights of first refusal. All of the acquisitions are expected to close by July 15, 2010, subject to normal closing conditions, the company said.
Under the terms of the agreements, Keyera will acquire a 57% ownership interest in the Minnehik Buck Lake gas plant and a 20% ownership interest in the Edson gas plant. In addition, it is acquiring various ownership interests in the Keyera-operated West Pembina, Nordegg River, Gilby and Brazeau River gas plants.
Included in the transactions are interests in approximately 260km of gathering pipelines and nine compressor stations.
Also, as part of the transactions Keyera will acquire approximately 12 billion cubic feet of proved plus probable natural gas reserves and approximately 711 thousand barrels of natural gas liquids reserves. Current production is approximately four million cubic feet per day of natural gas and about 350 barrels per day of natural gas liquids.
Jim Bertram, president and CEO of Keyera, said: “These transactions are a continuation of our growth strategy in the gathering and processing segment of our business.”
