Keyera Corp. (TSX:KEY) (TSX:KEY.DB.A) and Kinder Morgan Energy Partners L.P. (NYSE:KMP) today announced a 50-50 joint venture to build a crude oil rail loading facility in Edmonton, Alberta, called the Alberta Crude Terminal. When complete, the Alberta Crude Terminal will be able to accept crude oil streams handled at Kinder Morgan’s Edmonton Terminal for loading and delivery via rail to refineries anywhere in North America.
“We are delighted to partner with Kinder Morgan, one of the premier pipeline transportation and energy storage companies in North America,” said David Smith, president and COO of Keyera. “Kinder Morgan’s access to multiple crude streams, together with our location and facility capabilities, combines crude oil supply with the necessary infrastructure, land and rail connectivity to help address some of the crude oil delivery constraints currently being experienced by the Alberta energy sector.”
“Keyera is a key and significant mid-stream company in western Canada and we are pleased to be able to join forces with them to enable additional market export options for the Canadian producer and supply options for the North American refining industry,” said Bill Henderson, vice president for Kinder Morgan Canada Terminals. “The Alberta Crude Terminal is a great strategic fit with our expanding Edmonton terminal hub and is a very important part of our growing crude by rail terminal network.”
The Alberta Crude Terminal will be constructed next to Keyera’s Alberta Diluent Terminal on land recently acquired by a Keyera subsidiary. The Alberta Crude Terminal, which will be operated by Keyera, will have 20 loading spots capable of loading approximately 40,000 barrels per day of crude oil into tank cars and will be served by both Canadian National Railway and Canadian Pacific Railway. The location is very well situated to provide this service, as the Edmonton area is western Canada’s primary oil hub where Alberta crude oil is aggregated before being delivered to markets across North America.