Alongside this announcement, Provident increased guidance for 2011 adjusted EBITDA and as well as capital expenditures.   
The storage agreement will provide two underground caverns, with capacity for approximately one million barrels, on a fee-for-service basis. Provident will convert an existing product cavern and reconfigure one of five currently under development to accommodate crude oil products. The caverns are expected to be placed into service in Q2 2012 and Q2 2013.   
In recent weeks, Provident has announced a string of long-term fee-based storage agreements, totaling over 2.5 million bbl of capacity. The company said strong demand has allowed a material increase of its 2011 adjusted EBITDA and medium-term growth capital outlook.   
Provident increased its adjusted EBITDA range to $245 million-$285 million Canadian from its previous $210 million-$250 million range. The 15% guidance increase is based, in part, on average price assumptions for September through December 2011 of WTI crude of $85/bbl, AECO natural gas of $3.65/GJ, a Canadian/U.S. dollar exchange rate of $1 and a Mt. Belvieu propane price at 74% of crude oil. The guidance also assumes that extraction premiums at Empress for 2011 will be near the high end of an updated range of $5-$8/GJ.   In addition, the guidance reflects an increase in pricing expectations for propane as a percentage of crude oil for the second half of 2011, as well as an increase in expected sales volumes. Higher sales volume expectations have been driven primarily by increasing supply and, correspondingly, production at Provident’s Redwater West Facilities, the company said.   
Meantime, Provident over the next two years plans to deploy approximately $280 million Canadian in growth capital — $135 million in 2012 and $145 million in 2013. Previous projections were for $70 million per year. The target is to deploy $100 million-$125 million Canadian in growth capital annually beyond 2013, also up from the prior $70 million target.    
The increase in growth capital goals reflects opportunities in key regions for Provident, the company said. Increased liquids-rich natural gas drilling in the Montney, BC, area and growing activity in the Alberta oilsands have upped demand for NGL infrastructure and logistics services. In addition, drilling in the Appalachian shale plays in the United States and Provident’s increased presence as a crude oil and NGL services provider in the Bakken area have increased demand for transportation, storage and fractionation services.