Storage terminal slated for Edmonton

Two companies to build facility

Keyera Corp. and Kinder Morgan Inc. will build a crude oil storage terminal at Keyera’s Alberta Enviro Fuels site on 17th Street in east Edmonton.

The Base Line Terminal will initially provide 4.8 million barrels of storage capacity in 12 aboveground tanks, Keyera said in a release Tuesday.

A further 1.8 million barrels of storage capacity could be added if demand warrants, Keyera said.

Keyera said its share of costs is expected to be about $ 330 million. The project is underpinned by several take- or- pay agreements up to 10 years in duration.

The first tanks are to be commissioned in the second half of 2017.

The facility will be connected by pipeline to Kinder Morgan’s existing Edmonton storage terminals, giving customers access to all crude oil streams handled by Kinder Morgan.

Customers will be able to move products from the new terminal to market in a variety of ways, including pipelines and rail terminals operated by Keyera and Kinder Morgan.

David Smith, Keyera’s president and chief executive, said Kinder Morgan “provides unparalleled connectivity to sources of crude oil in the Edmonton area.”

John Schlosser, president of terminals for Kinder Morgan, said growing inbound and outbound pipeline capacity shows Edmonton is playing an increasingly important role as a North American crude oil hub.

“As such, it needs additional crude storage capacity, and our customers’ commitments affirm that growing need,” Schlosser said.