Energy services company Cancen Oil Canada is to acquire a 100% interest in Astra Energy Canada’s Kinsella Crude Oil Terminal.
As part of the agreement Cancen will purchase the terminal and blending facility for $5 million (€3.9 million) cash.
Located in Hardisty, Alberta, the terminal handles clean oil; the blending facility can blend and store 450m3 a day of sweet clean oil. It was originally put into operation in 2004, serving producers based in the west Cardigan region.
Upon completion of the transaction, Cancen plans to enhance the facility to treat waste oil and handle wastewater. Capacity will remain the same.
Details of the deal have not yet been announced, however is subject to a number of regulatory approvals. These include the completion of an equity or debt financing agreement, as well as other conditions.