September 26, 2012 / 1:16 PM / 5 years ago

UPDATE 1-Williams signs gas processing deal in Canada oil sands

* Expects to recover 15,000 bpd of natgas liquids, olefins
by 2018
    * Capital expenditures expected to be C$500 mln to C$600 mln

    Sept 26 (Reuters) - U.S. energy infrastructure company
Williams said on Wednesday it has signed a long-term gas
processing agreement with a producer in the Canadian oil sands.
    Under the deal, Williams will extract, transport,
fractionate, own and market natural gas liquids (NGLs) and
olefins from the producer's upgrader near Fort McMurray,
    Williams said it expects to recover about 12,000 barrels per
day (bpd) by mid-2015, growing to 15,000 bpd by 2018.
    The Tulsa, Oklahoma-based company did not name the Canadian
oil sands producer in its press release and a spokesman was not
immediately available for comment.
    Propane recovered will be sold into the local market and
would potentially be used as feedstock at Williams' proposed
propane dehydrogenation facility in Canada. The other products
will be sold into the established markets where Williams sells
existing NGLs and olefins produced in Canada.
    Williams said it plans to build a new liquids extraction
plant and supporting facilities at the oil sands producer's
upgrader. It also plans to extend its Boreal Pipeline to
transport the NGL/olefins mixture to its expanded Redwater
facility near Edmonton.
    The total capital expenditure for the project is expected to
be C$500 million to C$600 million, the company said.

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