Kinder Morgan Energy Partners LP and Imperial Oil have formed a 50-50 joint venture to build a crude oil rail-loading terminal in Strathcona County, Alta., called the Edmonton Rail Terminal. The JV will build the terminal on heavy industrial-zoned land about 0.5 km southwest of KMEP’s Edmonton storage terminal, on land adjacent to Imperial’s Strathcona refinery. Terminal design calls for a crude oil loading terminal capable of loading 1-3 unit trains/day for a combined 100,000 b/d at start up, with the potential to expand to 250,000 b/d.
KMEP’s Edmonton storage will supply the rail terminal for delivery on both Canadian National and Canadian Pacific mainlines. Imperial will be the base load customer and has subscribed for the start-up capacity through a long-term contract. The company said it will use the terminal for current and future production from the Kearl Oil Sands project, including the expansion phase scheduled for late-2015 start-up.
The partners are now actively marketing possible expansion capacity to potential third-party customers. The rail terminal will cost $170 million. KMEP will also spend about $100 million on pipeline connections and two new staging tanks to be built at its storage facility.
Construction is under way and completion is scheduled for December 2014.
KMEP formed a joint venture earlier this year with Keyera Corp. to build a separate crude oil rail terminal in Edmonton, the Alberta Crude Terminal, which will also pull its supplies from KMEP’s Edmonton storage (OGJ Online, Aug. 2, 2013).
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