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Publish Date : 30-Jan-2014

Kinder Morgan Energy Partners and Imperial Oil have signed a 50-50 joint venture to construct a crude oil rail-loading facility in Strathcona County, Alberta.

"This facility underlines the importance of our expanding Edmonton terminal hub and adds to our growing crude by rail terminal network," said Bill Henderson, vice-president for Kinder Morgan Canada Terminals. "The Edmonton Rail Terminal will provide much needed near-term delivery capacity for Canadian producers and a strategic bridge to Trans Mountain's major pipeline expansion, currently projected to be in-service in late 2017."

The Edmonton Rail Terminal will be constructed on heavy industrial-zoned land about one-half kilometre southwest of Kinder Morgan's Edmonton storage terminal on land adjacent to Imperial's Strathcona Refinery. Investment by the joint venture partners for the rail terminal will total about $170 million.

Additionally, Kinder Morgan will invest about $100 million in pipeline connections and two new staging tanks to be built within the Kinder Morgan Edmonton storage facility.

The facility is now being designed as a crude oil loading terminal, capable of loading one to three unit trains per day totaling 100,000 barrels daily at startup. It will have the potential to expand to about 210,000 barrels per day, and ultimately to 250,000 barrels daily.

Imperial Oil will be the base load customer and has subscribed for the start-up capacity through a long-term contract. The partners are now actively marketing possible expansion capacity to potential third-party customers.

The rail terminal will be built and operated by Kinder Morgan. It will connect to both Canadian National and Canadian Pacific mainlines. The new rail terminal will be built via pipeline to Kinder Morgan's tank facility. It will be capable of sourcing all crude streams operated by Kinder Morgan for delivery by rail to North American markets and refineries.

The work comprises the expansion phase that will come on stream in late 2015. Construction of the rail terminal is in progress and it will be concluded in December 2014.

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