The Base Line Terminal project will initially include construction of 12 tanks with a storage capacity of 4.8 million barrels.
Depending on future demand, the firms will add up to 1.8 million barrels of incremental storage capacity to the terminal and the first tanks are planned to enter service in the second half of 2017.
Scheduled to be commissioned in phases, the terminal will be connected to Kinder Morgan’s existing Edmonton storage terminals through pipeline and will provide access to all Kinder Morgan-managed crude oil streams to customers.
Keyera will invest approximately CDN$330m ($259.8m) for the construction of the terminal while Kinder Morgan’s share will be approximately CAD$342m ($269.2m) for an initial 12 tank build-out.
Kinder Morgan is responsible for the construction and operation of the terminal.
Keyera president and chief executive officer David Smith said: "While Keyera is contributing valuable undeveloped land, Kinder Morgan provides unparalleled connectivity to sources of crude oil in the Edmonton area."
The project is supported by several take-or-pay agreements with creditworthy customers and up to 10 years in duration.
Kinder Morgan terminals president John Schlosser said: "Edmonton is playing an increasingly important role as a North American crude oil hub, demonstrated by the growth of inbound and outbound pipeline capacity.
"We have the ability to further expand the facility to provide future customers with storage services in this important market."
