Aux Sable and Seven Generations team up for additional liquids rich gas supplies - KWES NewsWest 9 / Midland, Odessa, Big Spring, TX: newswest9.com |

Aux Sable and Seven Generations team up for additional liquids rich gas supplies

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SOURCE Aux Sable Canada LP

CALGARY, June 26, 2014 /CNW/ - Aux Sable Canada LP is pleased to announce it has executed an additional long-term Rich Gas Premium (RGP) agreement with Seven Generations Energy Ltd (7G). The agreement significantly increases the volumes originally agreed to by the companies in February 2013.  

Under this new long-term agreement, volumes of liquids-rich natural gas from 7G's Kakwa River Project are expected to ramp-up to 500 million cubic feet per day (mmcf/d).  These supplies will be processed at Aux Sable's extraction and fractionation facilities located in Channahon, Illinois.

"This arrangement enables 7G to deliver about a quarter of what we see as the ultimate potential productivity from our current land base," said Pat Carlson, 7G's Chief Executive Officer.  "We have been delivering rich gas to Aux Sable through Alliance since November 2012.   Our experience to date has been very positive and has given us confidence in Alliance and Aux Sable as midstream partners, for this expansion and, possibly, further joint ventures in the future.  The terms of the agreement allow us to achieve U.S. pricing on a significant portion of our overall production, providing reduced risk through built-in market diversity."

"We have received 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 positioned 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 substantially strengthens our feedstock supply beyond 2015."

Aux Sable continues to work with producers to attract liquids-rich gas to its facilities beyond 2015.

About Aux Sable

Aux Sable Canada's U.S. affiliate, Aux Sable Liquid Products, owns and operates the world-scale natural gas liquids extraction and fractionation facilities in Illinois near the terminus of the Alliance Pipeline. The facility is capable of processing 2,100 mmcf/d of natural gas and can produce approximately 107,000 barrels per day of specification natural gas liquid products. For more information, visit http://www.auxsable.com.

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

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