Canadian firm to acquire Alberta iso-octane producer for $198m

08 December 2011 17:47  [Source: ICIS news]

TORONTO (ICIS)--Canadian midstream oil and gas firm Keyera has agreed to acquire iso-octane producer Alberta EnviroFuels for about $198m (€149m), it said on Thursday.

Alberta EnviroFuels (AEF), which is jointly owned by Finnish refiner Neste Oil and US major Chevron, operates a 520,000 tonne/year iso-octane plant in Edmonton, Alberta - the world's largest such facility, according to Keyera.

In addition to the purchase price, Keyera expects to pay about $50m for the plant’s butane and iso-butane inventories on closing the deal in early 2012.

AEF employs about 100 people.

AEF's plant uses butane as its primary feedstock. The facility is connected by pipeline to Keyera’s natural gas liquids (NGL) infrastructure in the Edmonton/Fort Saskatchewan energy and petrochemicals production region in Alberta.

In a separate statement, Neste said Keyera was a natural choice to take over the plant as it has supplied feedstock to the facility for several years.

For Neste, the deal marks the conclusion of a divestment programme that included the sale of an ethyl tertiary butyl ether (ETBE) plant in Portugal and a polyalphaolefin plant in Belgium, it said.

Iso-octane is a low-emission, high-octane gasoline blending component derived from butane.

($1 = €0.75)

For more on Neste, Chevron and other producers visit ICIS company intelligence

By: Stefan Baumgarten
+1 713 525 2653

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