Oil Storage Terminal New 4.8 Million Barrel Crude Oil Storage Capacity to be Build in Edmonton
A joint venture of Kinder Morgan (KMI) and Keyeraplan a new crude oil storage terminal in Edmonton, Alberta: The site, called Base Line Terminal, will have 4.8 million barrels of crude oil storage capacity, the JV partners stated.
Houston, Texas/USA – KMI’s investment in the joint venture terminal is approximately CAD $ 342 million - approximately US $ 270 million – (includes capitalized interest) for an initial 12 tank build-out, with commissioning expected to begin in the second half of 2017.
Separately, KMI will invest up to an additional CAD $ 69 million (US $ 54 million) outside the joint venture for connecting pipelines and related infrastructure for a total project investment of approximately CAD $ 411 million. The terminal is under development on land owned by Keyera and will be operated by Kinder Morgan.
12 Million Barrel Expansion in Ten Years
The Base Line Terminal will be connected via pipeline to Kinder Morgan’s Edmonton terminals and will be capable of sourcing all crude streams handled by Kinder Morgan for delivery to multiple destinations, including, but not limited to, Kinder Morgan’s Trans Mountain Pipeline and two Edmonton rail terminals, and other major export pipelines.
“Kinder Morgan is excited to build this new facility with Keyera, which was made possible by leveraging the success of our previous joint venture,” said Kinder Morgan Terminals President John Schlosser. “Edmonton is playing an increasingly important role as a North American crude oil hub, demonstrated by the growth of inbound and outbound pipeline capacity. As such, it needs additional crude storage capacity, and our customers’ commitments affirm that growing need. We have the ability to further expand the facility to provide future customers with storage services in this important market. When this initial project is completed, we will have grown our merchant storage, exclusive of our Trans Mountain regulated storage assets, from basically zero tankage to a 12-million-barrel position in roughly a 10-year period.”