Keyera plans to acquire a logistics and liquids blending terminal near Tulsa, Oklahoma.
The terminal receives, blends and delivers diluent, the majority of which is transported by pipeline from the Mont Belvieu area to the Chicago area and ultimately into the Alberta market.
The terminal also has exclusive access to a nearby rail-to-truck transloading facility. The acquisition is expected to close in the second quarter of 2018 for $80 million.
David Smith, president and CEO, says: ‘This acquisition builds on Keyera’s focused investment strategy for the US, where we are selectively extending our liquids infrastructure into key US liquids hubs.
‘The terminal is situated 50 miles from our recently announced Wildhorse development, providing opportunities for operations integration and commercial synergies. These assets, along with our Hull Terminal, provide the foundation for Keyera to execute a strategy in the US that is consistent with our proven strategy in Canada.’