KANATA announces new partnership

KANATA Energy Group Ltd. is pleased to announce that it has reached agreement with Cequence Energy Ltd. (Cequence) to acquire a 50% share of their Simonette gathering and processing facility in west central Alberta. The facility has a capacity of 100 million ft3/d and is connected to the Alliance pipeline system.

As operator of the joint venture, KANATA will lead the construction of a new 120 million ft3/d refrigeration facility that will have the capability of delivering processed gas to both the Alliance and TransCanada pipeline systems. The new refrigeration facility has received regulatory approval with engineering and fabrication of major equipment well underway. The expansion is expected to be operational in the first quarter of 2016.

"We are very excited to work in partnership with Cequence to develop the prolific Simonette area. We look forward to a long term and mutually beneficial relationship and are positioned to supply the area's growing demand for gathering and processing infrastructure. The Simonette facility will provide third parties with an alternative processing solution," said Kevin Cumming, President and Chief Executive Officer at KANATA. "The partnership allows for Cequence to retain control as co-owner of the facility while relying on KANATA to deliver service excellence."

"Cequence is pleased with this midstream partnership and believes KANATA's responsive, flexible and customer-focused approach to midstream services will provide area growth opportunities for both parties," said Paul Wanklyn, President of Cequence.

Adapted from press release by Hannah Priestley-Eaton

Published on 27/05/2015

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