Aux Sable's business development activities are focused on four key areas:
- Securing rich gas supplies for our existing Channahon Extraction and Fractionation Facilities;
- Expanding our midstream footprint in the Montney, Duvernay and Bakken;
- Growing our offgas processing business in Canada and the U.S.; and
- Providing customized options to liquids rich natural gas producers for natural gas and natural gas liquids (NGL) to reach premium U.S. markets.
Rich Gas Supply To Premium Markets
Aux Sable works with gas producers along the Alliance footprint to bring rich gas supplies into the Alliance Pipeline for delivery to our Channahon extraction facilities located near Chicago, Illinois. Aux Sable's commercial arrangments provide rich gas producers attractive NGL incentives compared to more traditional NGL marketing options.
Aux Sable's facilities in Channahon, Illinois are connected to premium U.S. NGL markets and U.S. export terminals that offer higher NGL pricing than can typically be realized in Western Canada. To date, Aux Sable has arrangements with several producers for rich gas supply now and post December of 2015.
Expanding Midstream Footprint
Aux Sable has proven experience constructing and operating field gas processing facilities. Aux Sable works with gas producers in the design, engineering and construction of field gas processing plants. Aux Sable offers producers flexibility in ownership structures and operating arrangements not usually offered by other midstream players. Our field plant design criteria is to minimize capital and operating costs and maximize stabilized condensate revenues, while meeting downstream pipeline quality specifications. Based on these design criteria we continue to expand our midstream business.
Growing Fort Saskatchewan Processing
Aux Sable is currently working with various offgas producers (refineries and upgraders and Alberta based NGL consumers) to increase the supply of offgas to our processing facilities in Canada. These projects are anticipated to produce additional volumes of hydrogen, ethane and NGLs to refiners and upgraders. Removing these products from the offgas and using natural gas as an industrial fuel reduces the environmental footprint of refinery and upgrader operations.
Aux Sable's Channahon Extraction and Fractionation Facilities are currently connected by pipeline to Enterprise, Buckeye and Oneok systems, with direct access to local refineries and chemical facilities. In addition, the Channahon facility has the ability to load NGL rail cars utilizing its 16 spot rail loading rack (minimum two switches per day), which is serviced by CN and CSX with connections to all major railroads. Channahon also has exclusive access to the Enterprise Monee Product terminal for utilization of propane storage (180,000 barrels) and associated truck loading. In order to enhance NGL incentives, Aux Sable is evaluating opportunities that will provide for greater access by rail to NGL export terminals.