CALGARY, Alberta--(BUSINESS WIRE)--CSV Midstream Solutions Corporation (the “Company” or “CSV”) is pleased to announce it has reached a non-binding agreement in principle with an intermediate exploration and production company (the “Producer”), to build, own and operate a gas processing facility (the “Facility”) in the Resthaven area of Alberta. The Facility will be capable of processing 100 Million standard cubic feet per day of sweet gas from the Resthaven area. CSV and the Producer expect to enter into definitive documentation within 60 days.
The construction of the Facility is expected to begin in the third quarter of 2017, with an expected completion late in the first quarter of 2018.
The construction of the Facility will provide CSV with a template modular design that allows CSV to deliver similar facilities multiple times with only slight variations to account for the different resource opportunities.
“During this challenging economic environment, CSV has been deliberately integrating its engineering and design capabilities, and with this project we are now delivering on our commitment to excellence as a standard. We are excited to be working alongside our producing partner as one of the premier active natural gas developers in Canada,” said Daniel Clarke, President and CEO of CSV.
The Facility is expected to be operating at full capacity with the possibility for expansions or repeatable facilities in the near future. “Expanding processing capacity needs have created opportunity for CSV to deliver a true midstream partnership solution to our partners,” added Clarke.
CSV is well-positioned to take on the majority of the capital risk in the development of the Facility. The Company’s shared-risk model is possible through equity commitments it has received from funds managed by affiliates of Apollo Global Management, LLC (NYSE:APO) together with its subsidiaries, (“Apollo”). The project will draw only a small portion of the US$500 million equity commitment made by such funds to financing the Company’s progressive business plan.
“We are very fortunate to have the backing of Apollo, with access to their deep experience in natural resources,” states Clarke. “Our vision is to not only deliver exceptional expertise within the natural gas infrastructure sector, but also to work closely with all involved - industry and community - to create shared value up and down the line.”
About CSV Midstream Solutions Corporation
CSV is a Calgary-based company offering full services for complete midstream solutions. With a vision to advance midstream, CSV provides innovative, sustainable strategies in the design, construction, operation and management of natural gas and NGL assets, including sweet and sour gas processing, liquids handling and fractionation, and gas gathering and transmission pipelines. CSV’s primary focus is the developing natural gas energy industry in the Western Canadian Sedimentary Basin. For more information about CSV, please visit www.csvmidstream.com.
About Apollo Global Management, LLC
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Bethesda, St. Louis, Chicago, Toronto, London, Frankfurt, Luxembourg, Madrid, Singapore, Mumbai, Delhi and Hong Kong. Apollo had assets under management of approximately $192 billion as of December 31, 2016 in private equity, credit and real estate funds invested across a core group of nine industries, where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.agm.com.