| Provident entered the midstream
business in September 2003 with the purchase
of the integrated Redwater midstream processing
and fractionation system. The acquisition of the
midstream business was accretive to Provident’s
net asset value and 2004 distributable cash flow.
Further, the long-term nature of the physical
asset combined with its fixed-margin and fee-for-service
contracts, enhances the stability of Provident’s
cash flows and extends the Trust’s economic
life.
|
|
|
| Located in one of
four main North American NGL hubs, Provident’s
Redwater system accounts for approximately 25
percent share of the NGL fractionation capacity
in western Canada. The most modern and low cost
facility of its kind, Redwater is one of two facilities
in western Canada capable of processing ethane-plus.
The Redwater facility can also process high-sulfur
NGL streams.
The Redwater system owned by Provident includes:
-
100 percent ownership of the Redwater Fractionation
Facility, a 65,000 barrels per day fractionation,
storage and transportation facility located
near Edmonton, in one of four main NGL hubs
in North America.
-
43.3 percent ownership of the Younger NGL
extraction plant located at Taylor in northeastern
British Columbia.
-
100 percent ownership of the 565 kilometer
proprietary Liquids Gathering System that
runs along the Alberta-British Columbia border
beginning just south of Fort St. John. The
pipeline is connected to some of the more
significant natural gas plants in Western
Canada that produce liquids and accesses an
area that is highly active for liquids-rich
natural gas exploration.
|
