January 24, 2013 [OPIS] - Kinder Morgan Canada Terminals will build an additional 1.2 million barrels of merchant crude storage capacity at Trans Mountain Pipeline's Edmonton terminal in Strathcona County, Alberta, having secured long-term contracts from users, parent company Kinder Morgan Energy Partners (KMEP) said.
Construction of the new tankage is set to start this spring after receipt of supporting permits, with completion expected in late 2014, KMEP said.
This is Phase 2 of a similar storage expansion project that is well underway, KMEP said. Phase 2 will cost some $112 million.
Phase 1 storage capacity is expected to be in service in late 2013, costing some $308 million, supported also by long-term contracts from users, KMEP said.
This phase will offer 3.6 million barrels of new storage, it added, noting both Phase 1 and 2 had support from major producers and refiners.
When completed, total storage capacity at Kinder Moragn’s Edmonton facility will be 9.4 million barrels, including the existing Trans Mountain system facility and the North 40 merchant terminal, Houston-based KMEP said.
“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.”
