Aux Sable acquires additional long-term liquids rich gas supplies

Aux Sable acquires additional long-term liquids rich gas supplies

Canada NewsWire

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.

SOURCE Aux Sable Canada LP

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

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