Keyera plans to develop a crude oil storage and blending terminal in Cushing, Oklahoma.
The Wildhorse Terminal will include 12 aboveground tanks with 4.5 million barrels of working storage capacity. The majority of this is backed by fee-for-service, take-or-pay storage arrangements ranging from two to six years in length.
Wildhorse will initially be pipeline connected to two existing storage terminals at Cushing. These connections will provide customers with access to the majority of the crude oil streams flowing in and out of Cushing on several major pipeline networks.
Keyera Energy, a subsidiary of Keyera, will oversee construction of the terminal and will operate it once it comes into service by mid-2020. An affiliate of Lama Energy Group will own 10% of the project.
David Smith, Keyera's president and CEO, says: '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.'
Growing Contanda's storage footprint in HoustonPetrochemical production fuels a bright storage future Oil market eyes November Iran sanctions hiatus A new name in Cushing Unleashing the potential of American energy Storage for the US's largest refining market Expanding the US global market share Trade war questions temper US midstream sector growth plans Safe & productive solutions for tank cleaning Ground improvement plays supporting role for storage tanks