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7/31/2013



Rail News: Rail Industry Trends

Keyera, Kinder Morgan to build crude-by-rail facility in Edmonton


Keyera Corp. and Kinder Morgan Energy Partners L.P. yesterday announced plans to jointly build a crude oil rail loading facility in Edmonton, Alberta, that will be served by CN and Canadian Pacific.

The Alberta Crude Terminal will be constructed next to Keyera's diluent terminal in Alberta on land recently acquired by a Keyera subsidiary. Keyera will operate the terminal, which will feature 20 loading spots designed to load 40,000 barrels of crude oil into tank cars per day.

The Edmonton area is western Canada's primary oil hub, where Alberta crude is aggregated before being delivered to various North American markets, said Keyera and Kinder Morgan officials in a joint statement. Keyera's and Kinder Morgan's share of the terminal's cost is estimated to total $65 million and $33 million, respectively.

"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," said Keyera President and Chief Operating Officer David Smith.

In addition to building the Alberta Crude Terminal, both Kinder Morgan and Keyera are independently planning modifications to their respective facilities in the Edmonton area by second-quarter 2014 to facilitate crude by rail. Kinder Morgan plans to build a 16-inch pipeline to connect its Edmonton terminal to Keyera's Edmonton terminal, and Keyera plans to construct a 16-inch pipeline across its Edmonton terminal to connect with the diluent terminal connector pipeline and add pumping capacity.



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