Keyera Corp. and Kinder Morgan, a large energy distribution and storage company based in Houston, have formed a joint venture to build a $98-million crude oil rail loading facility in Edmonton, Alberta, that will be able to accept product from the Kinder Morgan tank farm in Edmonton for export to refineries in North America.
The Alberta Crude Terminal will be constructed next to Keyera's Diluent Terminal on land recently acquired by Keyera, the companies said July 30 in a joint statement. The rail facility will be operated by Keyera and have 20 loading spots capable of loading about 40,000 barrels per day of crude oil into tank cars. It will be served by the Canadian National Railway and Canadian Pacific Railway.
The two mid-stream energy companies also plan to connect their storage facilities by pipeline.
Operations are expected to begin in the second quarter of 2014, assuming regulatory clearances and receipt of long-lead time items.
The project is underpinned by a new five-year agreement with a major refiner.
Expansion of the facility to 125,000 barrels per day of loading capacity is also being considered.
Alberta is home to huge oil sand deposits. - Eric Kulisch