ALBERTA

Keyera buying propane, butane shipping terminal in Texas from ExxonMobil

09/17/2012 06:44 EDT | Updated 11/17/2012 05:12 EST
CALGARY - Keyera Corp. (TSX:KEY) is buying a rail and truck terminal in Texas from ExxonMobil Oil, the latest move by the Calgary-based company to expand is infrastructure for handling natural gas liquids.

The Calgary-based company said Monday it plans to spend $10 million to $15 million on the acquisition near Hull, Texas, plus modifications to put existing equipment back into service by the first half of 2013.

Keyera says the liquids terminal northeast of Houston will initially be used to handle propane, butane, iso-butane and NGL mix for delivery to North American markets.

The company primarily owns gas processing plants and associated facilities in Alberta including pipelines, terminals and processing and storage facilities.

"The terminal is an ideal fit with our existing infrastructure," said David Smith, Keyera's president and chief operating officer.

"Dedicated rail facilities near Mont Belvieu, combined with our rail infrastructure in Edmonton and South Cheecham in the heart of the Alberta oil sands, will allow us to enhance the logistics associated with the movement of propane, butane and condensate. Access to high-value markets in the U.S. and Canada is expected to provide additional new growth opportunities for Keyera."

Keyera announced last week that it plans a $110-million upgrade at its gas processing plant in Fort Saskatchewan, Alta., allowing it to process ethane-rich natural gas liquids.

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