Provident Energy Trust

Provident Energy Trust

October 20, 2005 19:38 ET

Provident to Expand Redwater Facility

CALGARY, ALBERTA--(CCNMatthews - Oct. 20, 2005) -

Anchor tenant secured for new condensate receiving terminal to serve oilsands industry

Provident Energy Trust (Provident) (TSX:PVE.UN) (AMEX:PVX) has signed an agreement with EnCana Oil & Gas Partnership, an affiliate of EnCana Corporation (TSX, NYSE: ECA), to provide rail offloading and terminalling services for condensate to be used as a heavy oil diluent. A new condensate offloading facility is under construction at Provident's natural gas liquids (NGL) fractionation plant at Redwater, Alberta. The existing plant, which already has some capability to terminal condensate, is being expanded to offload and redeliver an additional 35,000 barrels per day of condensate for EnCana and other heavy oil producers. The expansion will also include a new multi-product truck loading facility. These new terminals will complement the existing pipeline connections to and from the plant and will be in service in the second quarter of 2006, at a total cost approaching $50 million. Full utilization of this facility's capacity is expected to increase the current Western Canadian diluent supply by more than 15 percent.

"This expansion marks an important step in building Provident's midstream storage and services business," said Andrew Gruszecki, Provident's Vice President, NGL Services. "Redwater is already a best-in-class fractionation facility, and this new terminal will generate additional fee-for-service revenue and add considerable flexibility to our overall operations. The plant is strategically located in the Alberta Industrial Heartland region and is well positioned to complement proposed infrastructure and upgrading expansions in this area. Expanding our rail and truck facilities and terminalling more condensate will increase our ability to address the oilsands industry's growing need for condensate as diluent."

Provident Energy Trust is a Calgary-based, open-ended energy trust that owns and manages oil and gas production businesses and a midstream services business. Provident's energy portfolio is located in some of the more stable and predictable producing regions in western Canada, California and Wyoming. Provident provides monthly cash distributions to its unitholders and trades on the Toronto Stock Exchange and the American Stock Exchange under the symbols PVE.UN and PVX, respectively.

Contact Information

  • Provident Energy Trust
    Laurie Stretch
    Senior Manager, Investor Relations and Communications
    (403) 231-6710
    Corporate Head Office:
    800, 112 - 4th Avenue S.W.
    Calgary, Alberta T2P 0H3
    (403) 296-2233 or Toll Free: 1-800-587-6299
    (403) 261-6696 (FAX)