Kinder Morgan announces Phase 2 of Edmonton terminal expansion
Thursday, Jan 24, 2013
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that Kinder Morgan Canada Terminals has entered into long-term contracts to support construction of an additional 1.2 million barrels of merchant storage capacity at Trans Mountain Pipeline’s Edmonton terminal in Strathcona County, Alberta. Construction of the new tankage is scheduled to commence this spring following receipt of supporting permits, with completion expected in late 2014. Phase 2 will cost approximately $112 million.
“The new tanks further demonstrate the strategic importance of Trans Mountain’s Edmonton hub and the role it will play in staging Western Canadian crude oil production into export markets, including West Coast markets served by Trans Mountain Pipeline”
Construction of Phase 1 of the expansion, which consists of 3.6 million barrels of new storage, is well underway and all of that capacity is expected to be in service in late 2013. Total capital investment for the combined 4.8 million barrel project is approximately $420 million and is supported by long-term contracts with major producers and refiners. When completed, total storage capacity at the Edmonton facility will be 9.4 million barrels, including the existing Trans Mountain system facility and the North 40 merchant terminal.
“The new tanks further demonstrate the strategic importance of Trans Mountain’s Edmonton hub and the role it will play in staging Western Canadian crude oil production into export markets, including West Coast markets served by Trans Mountain Pipeline,” said Bill Henderson, vice president of Kinder Morgan Canada Terminals. “The hub also gives Kinder Morgan’s customers flexibility and optionality in this time of increasing production and volatile prices.”
Source: Business Wire
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