Beaver Hills to Conduct Feasibility Study for Alberta Condensate Processing Facility
Marketwire
Beaver Hills Processing GP Inc.
September 5, 2007 - 09:00:03 AM
Beaver Hills to Conduct Feasibility Study for Alberta Condensate Processing
Facility
CALGARY, ALBERTA--(Marketwire - Sept. 5, 2007) - Beaver Hills Processing GP
Inc. today announced that it will conduct a feasibility study for an
innovative, $300 million processing facility in Alberta to refine condensate
into petroleum products and petrochemical aromatics for the growing western
Canadian market.
The joint venture is owned 50 percent by Corrillo Energy LP of Calgary, which
in turn is owned by Corrillo Holding LP, the provider of the technology for
the facility. The two other participants, each with a 25 percent ownership
stake in the venture, are Gibson Energy Ltd. of Calgary and Parkland Income
Fund (TSX:PKI.UN) of Red Deer. Gibson is a midstream company with marketing,
transportation, distribution and processing operations in Western Canada.
Parkland operates an extensive network of branded retail and dealer service
stations and a commercial fuels business across western Canada. Beaver Hills
will manage the project on behalf of the joint venture.
The proposed facility would have a capacity of 36,500 barrels per day and
would be located near existing distribution infrastructure in the County of
Strathcona, east of Edmonton. Parkland will be the exclusive distributor of
the gasoline and diesel fuel produced from the project, while Gibson will
supply and market all condensate feedstock and sales volume. The feasibility
study is part of the project's $8 million first phase, which also includes
preliminary engineering, the finalization of product agreements and project
financing. The first phase is scheduled for completion in mid-2008 and the
facility is slated to commence commercial production in 2010, subject to
positive results from the first phase and regulatory approval.
According to Beaver Hills President Rod Evans, "The facility would process
condensates using advanced but proven technology, including an innovative
sequencing of conventional conversion processes that maximizes the volume of
high-value refined products and co-products while minimizing capital, energy
and operating costs."
Terry Gomke, President and CEO of Gibson Energy Ltd., noted that the facility
will be on Gibson land adjacent to its existing operations in Edmonton. "This
new venture will broaden Gibson's strategic direction and complement our
marketing, terminal and transportation operations in the Edmonton Area," he
said.
Commenting on the project, Parkland President and CEO, Mike Chorlton said,
"Beaver Hills is an innovative way for Parkland to enhance its long-term
supply of gasoline and diesel fuel to better serve our customer base across
Western Canada."
About Corrillo Energy
Corrillo Holding LP, parent of Corrillo Energy LP, is both a technology
provider and developer of projects using this innovative technology.
Corrillo's major investor is ARC Financial Corp., a Calgary based,
energy-focused private equity firm. ARC manages five funds representing $1.9
billion of committed capital.
About Gibson Energy
Gibson Energy Ltd. develops, implements and supports midstream solutions for
the oil and gas industry. Setting them apart from other midstream providers is
the scope of their modern infrastructure (terminals, pipelines and truck
transportation units) and their ability to deliver technologically-advanced
solutions to meet business needs. Other offerings provided through two
affiliates, Canwest Propane and Moose Jaw Refinery, include wholesale and
retail propane distribution and road asphalt, roofing flux and wellsite fluid
product manufacturing. For more information, visit www.gibsons.com. Gibson
Energy Ltd. is a subsidiary of London-based Hunting PLC (HTG:LSE), an
international oil services company providing support solutions to the world's
largest oil and gas companies.
About Parkland
Parkland Income Fund operates retail and wholesale fuels and convenience store
businesses under its Fas Gas Plus, Fas Gas, Race Trac Fuels and Short Stop
Food Stores brands and through independent branded dealers, and transports
fuel through its Petrohaul division. With approximately 550 locations,
Parkland has developed a strong market niche in western and northern Canadian
non-urban markets. Through Neufeld and Joy the Fund markets propane, gasoline,
diesel, lubricants, industrial fluids, agricultural inputs and delivery
services to commercial and industrial customers in northern Alberta,
northeastern British Columbia and the Northwest Territories. Through United
Petroleum the Fund markets wholesale and commercial fuels and lubricants
throughout southern British Columbia. To maximize value for its unitholders,
the Fund is focused on the continuous refinement of its retail portfolio,
increased revenue diversification through growth in non-fuel revenues and
active supply chain management. Parkland operates the Bowden refinery near Red
Deer, Alberta producing drilling fluids on a contract basis. The Fund's units
trade on the Toronto Stock Exchange (TSX) under the symbol PKI.UN. For more
information, visit www.parkland.ca.
AI
