By Cathy Dobson From www.theobserver.ca The Observer
ST. CLAIR TOWNSHIP — Provident Energy announced Friday that it has entered a 10-year lease agreement with an undisclosed Sarnia company for use of two underground storage caverns.
It’s been more than a year since Alberta-based Provident Energy purchased nearly the entire former Dow site at LaSalle Line and Highway 40.
The company, Canada’s second largest handler of natural gas liquids, invested millions of dollars in the 1,000-acre property to prepare Dow’s vacated salt caverns for the storage of liquefied petroleum gases such as ethane, propane and butane.
“We continue to see strong demand for storage services at both our Corunna and Redwater facilities,” said CEP Doug Haughey.
“This agreement, along with our recently announced $100 million storage project at Redwater, demonstrates our ability to execute stable long-term, fee-based arrangements that will be a key part of our growth going forward.”
This latest agreement in St. Clair Township involves a capacity of 525,000 barrels in the two caverns, as well as use of the associated pipeline and drying facilities.
The agreement commences in early 2012.
Observer Article ID# 3318977