Kinder Morgan Energy Partners LP’s 50-50 joint venture with Imperial Oil Ltd. has entered into additional firm take-or-pay agreements to add incremental capacity of 110,000 b/d at the Edmonton Rail Terminal. The terminal is almost a year into construction, KMEP said.
The Edmonton Rail Terminal’s first-quarter 2015 start-up capacity will now be more than 210,000 b/d and potentially up to 250,000 b/d. The terminal will connect via pipeline to KMEP’s adjacent Edmonton storage terminal and will be capable of sourcing all crude streams handled by KMEP for delivery by rail to North America.
KMEP will build and operate the rail terminal in Strathcona County, Alta., with connections to both Canadian National and Canadian Pacific mainlines.
The joint-venture estimates the terminal’s total cost, including expansion, at $232 million. KMEP and Imperial formed the terminal joint venture late last year (OGJ Online, Dec. 26, 2013).