2005-11-17 09:54:16 EST

***PETROGAS FORGES AGREEMENT TO DEVELOP TERMINALLING FACILITY

Petrogas Marketing Ltd. has inked an agreement with a major offshore international supply and services company for the development of diluent import and terminalling infrastructure through the port of Prince Rupert, British Columbia, in response to growing heavy oil and bitumen diluent requirements in Alberta, Canada.

This arrangement complements Petrogas' strengths as a leading edge, independent energy supply and trading organization, said a company statement.

Petrogas, headquartered in Calgary, Alberta, provides supply, marketing, transportation and distribution of propane, butane, condensate diluents and crude oil through its offices in Calgary, Houston and Kansas City.

Petrogas' truck, rail and terminalling operations located in Alberta, British Columbia, Missouri, New York and Pennsylvania distribute propane, butane and condensate to numerous end use customers across North America.

Petrogas has a long term exclusive agreement at a facility in central Alberta and is currently utilizing these facilities to supply railcar sourced condensate diluents to heavy oil producers.

According to Petrogas' Greg Johnson, VP Trading & Business Development, finalizing terms and logistics are subject to due diligence and approval of applicable regulatory agencies.

Diane T. Miller, dmiller@opisnet.com
Copyright, Oil Price Information Service

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