Aux Sable acquires additional long-term liquids rich gas supplies

CALGARY, Nov. 24, 2014 /CNW/ - Aux Sable Canada LP is pleased to announce it has signed new long-term Rich Gas Premium (RGP) agreements with Encana Corporation ("Encana") and Brion Duvernay Gas Partnership ("Brion", previously named Phoenix Duvernay Gas, is a joint venture participant of Encana). 

These agreements provide for up to 180 million cubic feet per day (mmcfd) of additional rich gas supplies from the emerging Duvernay shale play for connection to a receipt zone in Alberta, starting in November 2017 and continuing through to 2020.

In March 2014, Aux Sable announced that it had entered into RGP agreements with Encana and Brion to provide for up to 195 mmcfd of rich gas supplies from the same area, starting in July 2014 and continuing through to 2020.

"We continue to receive overwhelming support for our RGP agreements from liquids rich gas producers in Canada and the U.S. seeking the best value for their products. Our facilities are strategically located to provide liquids-rich gas producers with access to competitive natural gas and natural gas liquids markets," said Tim Stauft, President & Chief Executive Officer of Aux Sable Canada. "This transaction strengthens our feedstock supply beyond 2015 and further underpins our growth strategy."

"This agreement with Aux Sable supports our development plans in the Duvernay resource play while diversifying Encana's pricing exposure. The Duvernay is one of the key growth areas in Encana's portfolio and this solidifies our long-term takeaway capacity in the play," said Renee Zemljak, Executive Vice-President, Midstream, Marketing & Fundamentals of Encana.

Aux Sable recently announced a US$130 million expansion of its extraction and fractionation facilities in Channahon, Illinois.

Aux Sable Canada's US affiliate, Aux Sable Liquid Products, owns and operates a world-scale natural gas liquids extraction and fractionation facility in Illinois near the terminus of the Alliance Pipeline. The facility is currently capable of processing 2.1 billion cubic feet per day of natural gas and can produce approximately 107,000 barrels per day of specification natural gas liquid products. For more information, visit www.auxsable.com.

Aux Sable Canada is owned by Enbridge Inc. and Veresen Inc.  Aux Sable Canada's US affiliate, Aux Sable Liquid Products is owned by Enbridge, Veresen and Williams Partners.

Image with caption: "Aux Sable Canada LP (CNW Group/Aux Sable Canada LP)". Image available at: http://photos.newswire.ca/images/download/20141124_C9827_PHOTO_EN_43239.jpg

SOURCE: Aux Sable Canada LP