Keyera Corp. has agreed to acquire 50% interest in the southernmost section of the 20-in. diluent Grand Rapids pipeline, entering into a 50-50 joint venture with the Grand Rapids Pipeline Limited Partnership, itself a 50-50 JV of TransCanada Corp. and PetroChina Co. Ltd. Canadian subsidiary Brion Energy Corp.
The 45-km pipeline will be constructed by Grand Rapids and will extend from Keyera's Edmonton terminal to TransCanada's Heartland terminal near Fort Saskatchewan (OGJ Online, May 3, 2013). Keyera will also contribute a new pump station at its Edmonton terminal.
Grand Rapids expects its total contribution to the joint venture to be $140 million. Keyera will operate the pipeline once construction is complete and the facilities are in-service.
The expected in-service date is in the second half of 2017 subject to regulatory approvals.
The Grand Rapids project, announced in 2012 and to be operated by TransCanada (OGJ Online, Oct. 29, 2012), began construction in fall 2014 and will become operational in stages, with initial crude oil transportation expected in 2016.