Exploration & Production

Encana Signs Duvernay Takeaway Agreement

Share Print Bookmark    |    Monday,November 24,2014

Aux Sable Canada LP has announced it has signed new long-term Rich Gas Premium (RGP) agreements with Encana Corporation and Brion Duvernay Gas Partnership.

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.

Tim Stauft, President & Chief Executive Officer of Aux Sable Canada, said: "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.

This transaction strengthens our feedstock supply beyond 2015 and further underpins our growth strategy."

Renee Zemljak, Executive Vice-President, Midstream, Marketing & Fundamentals of Encana, said: "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."

Aux Sable recently announced a US$130 million expansion of its extraction and fractionation facilities in Channahon, Illinois.