Kinder Morgan Canada Limited today announced the first four of 12 crude oil storage tanks at Base Line Terminal are up and running, a 50-50 crude oil merchant terminal joint venture with Keyera in Sherwood Park, Alta.
“Kinder Morgan is pleased to commence operation of the Base Line Terminal and provide the Edmonton market with much needed, additional merchant storage,” said John Schlosser, President of Kinder Morgan Canada Terminals. “The project is forecast to be completed on-time and on-budget later in the year, owing to strong cooperation with and support from our contractors and various project stakeholders, including the local community, regulators and government agencies.”
The remaining eight tanks at the facility, all twelve of which are fully-contracted with long-term, firm take-or-pay agreements with creditworthy customers, are expected to be phased into service throughout this year.
“We are also excited to expand our partnership in the Edmonton-area with Keyera and appreciate their support and involvement in the project,” added Schlosser.
Base Line Terminal is connected by pipeline to Kinder Morgan’s Edmonton-area terminals and is capable of sourcing the majority of the crude streams handled by Kinder Morgan for delivery to multiple destinations, including but not limited to, Kinder Morgan’s Trans Mountain Pipeline, the 50 per cent-Kinder Morgan-owned Alberta Crude and Edmonton Rail terminals, other Edmonton area facilities and major export pipelines.
Kinder Morgan’s total investment in the project is approximately $398 million, including costs associated with the construction of a pipeline segment funded solely by Kinder Morgan. Up to an additional 1.8 million barrels may be added in a phase-two expansion of the terminal, depending on future demand.
(Kinder Morgan Canada Ltd.)
