CALGARY, Feb. 7, 2013 /CNW/ - Aux Sable Canada LP is pleased to announce that it has signed additional Rich Gas Premium agreements with Canadian producers that will enhance the value of producers' natural gas liquids (NGLs) near term and beyond 2015. By transporting liquids via the Alliance Pipeline to Aux Sable Liquid Products' Channahon facility in Illinois for processing and fractionation, producers have access to large and liquid natural gas and NGL markets.
New Rich Gas Premium agreements were signed with Crocotta Energy Inc., Seven Generations Energy Ltd. and others. They join Trilogy Energy, Celtic Exploration, Crew Energy and Cequence Energy, who previously entered into Rich Gas Premium agreements with Aux Sable. Beyond 2015, these agreements are expected to result in transportation of approximately 450 million cubic feet per day of natural gas on the Alliance Pipeline.
"Aux Sable has responded to the significant interest from the producing community to enhance the value for their liquids-rich natural gas," said Tim Stauft, President of Aux Sable Canada. "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."
Aux Sable Canada has been actively working with producers to provide customized midstream services for natural gas and NGLs to reach growing U.S. NGL markets. Aux Sable Canada offers Rich Gas Premiums and other midstream services that include construction and operation of processing plants and pipelines for rich gas producers. Under Rich Gas Premium agreements, individual producers realize value from NGLs extracted at Aux Sable Liquid Products' NGL extraction and fractionation facility in Illinois.
Aux Sable Canada's U.S. affiliate, Aux Sable Liquid Products owns and operates the world-scale natural gas liquids extraction and fractionation facility in Illinois at the terminus of the Alliance Pipeline.
Aux Sable Canada is owned by Enbridge and Veresen Inc. Aux Sable Canada's U.S. affiliate, Aux Sable Liquid Products (http://www.auxsable.com) is owned by Enbridge, Veresen Inc. and Williams.
SOURCE Aux Sable Canada LP
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Aux Sable Canada secures additional long-term, liquids-rich natural gas supply agreements with Canadian producers beyond 2015
Feb 07, 2013, 04:02 EST