Keyera plans to develop a crude oil storage and blending terminal at Cushing in Oklahoma, US.
Called the Wildhorse, the terminal will comprise 12 above-ground tanks with a combined working storage capacity of 4.5 million barrels of oil (bbl). Most of this will be offered on fee-for-service and take-or-pay storage arrangements for a period of up to six years.
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Keyera president and CEO David Smith said: “The Wildhorse terminal is a strategic investment for Keyera as it expands our midstream infrastructure in the US at one of the largest crude oil storage and trading hubs in North America.
“The terminal also increases our fee-for-service business, extends our crude oil value chain, and provides significant opportunities to capture marketing margins through the use of our logistics and commercial expertise.”
This pipeline will initially be connected to two existing storage terminals at Cushing.
Expected to commence services from the middle of 2020, Wildhorse will be operated by Keyera’s US subsidiary Keyera Energy, which will also be responsible for monitoring construction work.
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By GlobalDataAn affiliate of Lama Energy Group will own 10% of the project. It has the option to increase its stake to 30% by the end of this year.
Keyera’s share of the capital costs is expected to be $185m, based on current capital estimates.
