November 25, 2005 News Synopsis

Petrogas Announces Fort Sask. Expansion Plans
Petrogas Marketing Ltd. has announced its agreement to build, own and operate a truck and rail terminalling facility for propane, butane and condensate at Fort Saskatchewan, Alberta.

In addition, the Petrogas facilities will be built to terminal rail sourced diluents, the company said.

Situated on the northwest corner of Dow Canada's Fort Saskatchewan manufacturing site, the terminalling facility will accommodate light hydrocarbons produced at the Dow Fort Saskatchewan de-ethanization and fractionation plant and will complement the needs of Petrogas and its customers. In addition to supplying local and regional LPG customers, the Petrogas terminal will service the expanding heavy oil diluent market.

"This facility represents a considerable investment and growth opportunity for Petrogas which will create added value for the oil and gas producing community," said Petrogas Vice-President of Trading and Business Development Greg Johnson . "We have already provided a project overview to a number of local community representatives and regional stakeholders. Petrogas welcomes the opportunity to share further details of the project with neighbors, the community and industry as we move through the permitting and approval process."

The facilities will be synergistic with Petrogas' previously announced initiative to develop diluent importing and terminalling infrastructure at the Port of Prince Rupert, British Columbia, the company said.

Petrogas, headquartered in Calgary, is engaged in the energy business, providing supply, marketing, transportation and distribution of propane, butane, condensate diluents and crude oil through its offices in Calgary, Houston and Kansas City. Its 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.

The Petrogas terminal is scheduled to be constructed and fully operational by the fall of 2006.

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