HOUSTON--(BUSINESS WIRE)--Kinder Morgan, Inc. (NYSE: KMI) today announced a 50-50 joint venture
with Keyera Corp. (TSX: KEY) to build a new crude oil storage terminal
in Edmonton, Alberta. The joint venture owners have entered into
long-term, firm take-or-pay agreements with strong, creditworthy
customers to build 4.8 million barrels of crude oil storage at a new
facility called the Base Line Terminal. KMI’s investment in the joint
venture terminal is approximately CAD$342 million (includes capitalized
interest) for an initial 12 tank build-out, with commissioning expected
to begin in the second half of 2017. Separately, KMI will invest up to
an additional CAD$69 million outside the joint venture for connecting
pipelines and related infrastructure for a total project investment of
approximately CAD$411 million. The terminal is under development on land
owned by Keyera and will be operated by Kinder Morgan.
The Base Line Terminal will be connected via pipeline to Kinder Morgan’s
Edmonton terminals and will be capable of sourcing all crude streams
handled by Kinder Morgan for delivery to multiple destinations,
including, but not limited to, Kinder Morgan’s Trans Mountain Pipeline
and two Edmonton rail terminals, and other major export pipelines.
“Kinder Morgan is excited to build this new facility with Keyera, which
was made possible by leveraging the success of our previous joint
venture,” said Kinder Morgan Terminals President John Schlosser.
“Edmonton is playing an increasingly important role as a North American
crude oil hub, demonstrated by the growth of inbound and outbound
pipeline capacity. As such, it needs additional crude storage capacity,
and our customers’ commitments affirm that growing need. We have the
ability to further expand the facility to provide future customers with
storage services in this important market. When this initial project is
completed, we will have grown our merchant storage, exclusive of our
Trans Mountain regulated storage assets, from basically zero tankage to
a 12-million-barrel position in roughly a 10-year period.”
“This project is another example of Keyera and Kinder Morgan combining
complementary assets and expertise to meet our customers’ needs,” said
Keyera President and Chief Executive Officer David Smith. “While Keyera
is contributing valuable undeveloped land, Kinder Morgan provides
unparalleled connectivity to sources of crude oil in the Edmonton area.”
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure
company in North America. It owns an interest in or operates
approximately 84,000 miles of pipelines and 180 terminals. The company’s
pipelines transport natural gas, gasoline, crude oil, CO2 and
other products, and its terminals store petroleum products and
chemicals, and handle bulk materials like coal and petroleum coke.
Kinder Morgan is the largest midstream and third largest energy company
in North America with an enterprise value of approximately $130 billion.
For more information please visit www.kindermorgan.com.
This news release includes forward-looking statements. These
forward-looking statements are subject to risks and uncertainties and
are based on the beliefs and assumptions of management, based on
information currently available to them. Although Kinder Morgan
believes that these forward-looking statements are based on reasonable
assumptions, it can give no assurance that such assumptions will
materialize. Important factors that could cause actual results to
differ materially from those in the forward-looking statements herein
include those enumerated in Kinder Morgan’s reports filed with the
Securities and Exchange Commission. Forward-looking statements
speak only as of the date they were made, and except to the extent
required by law, Kinder Morgan undertakes no obligation to update or
review any forward-looking statement because of new information, future
events or other factors. Because of these uncertainties, readers
should not place undue reliance on these forward-looking statements.
