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Aux Sable

The Aux Sable midstream business, which Veresen jointly controls through our 42.7% ownership interest, is comprised of a world-scale NGLs extraction and fractionation facility (known as the Channahon Facility) capable of producing up to 2.1 Bcf/d of natural gas and recovering 80 Mbbls/d of NGLs consisting of ethane, propane, normal butane, iso-butane and natural gasoline and NGLs storage and distribution facilities.

The Channahon Facility is a key component of the Alliance system as it manages the higher heat content levels associated with the NGLs-rich natural gas flowing on the Alliance Pipeline in order to meet downstream natural gas heat content specifications. The Channahon Facility is strategically located near Chicago, Illinois at the eastern terminus of the Alliance Pipeline, serving major NGLs markets.

Aux Sable’s Channahon Facility is a significant supplier of ethane, propane and butanes to the midwest U.S., particularly in Illinois and its neighbouring states.

Aux Sable has the exclusive right to extract and sell the NGLs transported by Alliance. The NGLs produced by Aux Sable are an integral component of numerous energy-related products (including home and industrial heating, crop drying, cooking, and motor fuel) and are used as feedstock for the petrochemical industry — for the production of ethylene, propylene, butadiene and other derivatives which are used to produce products such as polyethylene, rubber, plastics, solvents and foam materials — and in crude oil refining for gasoline and gasoline blending.

Heartland Off-Gas Facility

Commissioned in 2011, Aux Sable Canada’s Heartland off-gas Plant is located in the City of Fort Saskatchewan, approximately 20 km northeast of Edmonton. The Plant is a deep-cut off-gas processing facility licensed to process up to 20 MMcf/d of off-gas and produces hydrogen, ethane and a propane-plus mix. All of the products from the Plant will be delivered to Shell’s Scotford Refinery via pipeline, approximately 3 km to the northeast.

Aux Sable executed a long term off-gas processing agreement with Shell Canada Products in mid-2010.

Septimus Gas Plant/Pipeline

Aux Sable purchased the Septimus Gas Plant in late 2009. The Plant is located in the liquids-rich Montney area and has capacity of 60 MMcf/d.

The Septimus Pipeline is a 20-inch, 20-kilometre gas pipeline which transport sweet rich gas from Septimus to an interconnection point on the Alliance pipeline for delivery to the Channahon processing facility.

Palermo Plant and Prairie Rose Pipeline

Aux Sable assumed operations of the Palermo Gas Plant and Prairie Rose Pipeline on July 1, 2011. The Plant has capacity of 80 MMcf/d, and removes the heavier hydrocarbon compounds while leaving the majority of the NGLs in the rich gas delivered into the Prairie Rose Pipeline.

The Prairie Rose Pipeline gathers gas from the Palermo Plant and other sources for delivery into the Alliance Pipeline system at Bantry, North Dakota. The pipeline has an capacity of approximately 110 MMcf/d and can easily be expanded to meet additional demand.

 

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