Keyera Corp. and Kinder Morgan Energy Partners LP announced a 50/50 joint venture to build a crude oil rail loading facility in Edmonton, Alberta, called the Alberta Crude Terminal. When complete, the Alberta Crude Terminal will be able to accept crude oil streams handled at Kinder Morgan’s Edmonton Terminal for loading and delivery via rail to refineries anywhere in North America.
The terminal will be constructed next to Keyera’s Alberta Diluent Terminal on land recently acquired by a Keyera subsidiary. The Alberta Crude Terminal, which will be operated by Keyera, will have 20 loading spots capable of loading approximately 40,000 barrels (bbl.) per day of crude oil into tank cars and will be served by both Canadian National Railway and Canadian Pacific Railway.
In addition to the construction of the Alberta Crude Terminal, Kinder Morgan and Keyera are independently planning modifications to their respective facilities in the Edmonton area to facilitate delivery of crude oil to the Alberta Crude Terminal.
Kinder Morgan is proposing to construct a 16-inch pipeline to connect its North 40 Edmonton Terminal to Keyera’s Edmonton Terminal. Keyera plans to construct a new 16-inch crude oil pipeline across its Edmonton Terminal to join to the existing Alberta Diluent Terminal connector pipeline and install additional pumping capacity. In conjunction with this project, Keyera is also proposing to construct a new 12-inch condensate pipeline connecting the Alberta Diluent Terminal to the company’s Fort Saskatchewan Pipeline System.
Engineering work is under way on these initiatives, and commissioning of the new terminal is targeted for the second-quarter 2014. Keyera’s share of the cost of the Alberta Crude Terminal, as well as the land purchase, pipeline construction and other facility modifications, is expected to be approximately $65 million. Kinder Morgan’s share of the cost is expected to be approximately $33 million. Construction of the Alberta Crude Terminal is underpinned by a five-year agreement with a major refiner.
In anticipation of additional demand for crude oil loading services, Kinder Morgan and Keyera are currently evaluating a possible expansion of up to 125,000 bbl. per day of additional crude loading capacity and the possible addition of a diluent recovery unit.
Recommended Reading
Exclusive: Halliburton’s Frac Automation Roadmap
2024-03-06 - In this Hart Energy Exclusive, Halliburton’s William Ruhle describes the challenges and future of automating frac jobs.
PGS Wins 3D Contract Offshore South Atlantic Margin
2024-04-08 - PGS said a Ramform Titan-class vessel is scheduled to commence mobilization in June.
2023-2025 Subsea Tieback Round-Up
2024-02-06 - Here's a look at subsea tieback projects across the globe. The first in a two-part series, this report highlights some of the subsea tiebacks scheduled to be online by 2025.
Going with the Flow: Universities, Operators Team on Flow Assurance Research
2024-03-05 - From Icy Waterfloods to Gas Lift Slugs, operators and researchers at Texas Tech University and the Colorado School of Mines are finding ways to optimize flow assurance, reduce costs and improve wells.
TGS Commences Multiclient 3D Seismic Project Offshore Malaysia
2024-04-03 - TGS said the Ramform Sovereign survey vessel was dispatched to the Penyu Basin in March.