Kinder Morgan and Imperial Oil to Build Edmonton Crude Oil Rail Terminal
CALGARY -- December 20, 2013
Kinder Morgan Energy Partners L.P. (NYSE: KMP) and Imperial Oil (IMO) today
announced a 50-50 joint venture to build a crude oil rail-loading facility in
Strathcona County, Alberta, called the Edmonton Rail Terminal.
The facility will be built on heavy industrial-zoned land approximately
one-half kilometer southwest of Kinder Morgan’s Edmonton storage terminal, on
land adjacent to Imperial’s Strathcona Refinery. The Edmonton Rail Terminal is
currently being designed as a crude oil loading terminal capable of loading
one to three unit trains per day totaling 100,000 barrels per day at startup,
with the potential to expand to approximately 210,000 barrels per day, and
ultimately to 250,000 barrels per day.
The new rail terminal will be connected via pipeline to Kinder Morgan’s tank
facility and will be capable of sourcing all crude streams handled by Kinder
Morgan for delivery by rail to North American markets and refineries. The rail
terminal will be constructed and operated by Kinder Morgan and will connect to
both Canadian National and Canadian Pacific mainlines.
“This facility underlines the importance of our expanding Edmonton terminal
hub and adds to our growing crude by rail terminal network,” said Bill
Henderson, vice-president for Kinder Morgan Canada Terminals. “The facility
will be built with state-of-the-art technology and will incorporate extensive
safety and environmental protection features, and will be manned with trained
personnel around the clock. The Edmonton Rail Terminal will provide much
needed near-term delivery capacity for Canadian producers and a strategic
bridge to Trans Mountain’s major pipeline expansion, currently projected to be
in-service in late 2017.”
The Edmonton Rail Terminal will play an important role in improving access to
markets for oil sands production, said Rich Kruger, chairman, president and
chief executive of Imperial Oil.
“The terminal will deliver additional infrastructure and options required for
our distribution network and help maintain the value of Canadian crude,” said
Kruger. “Accessing new and existing markets is critical for our continued
growth and responsible development of Canada’s oil sands. The additional
transportation capacity will be used for current and future production from
the Kearl Oil Sands project, including the expansion phase, which will come on
stream in late 2015.”
Imperial Oil will be the base load customer and has subscribed for the
start-up capacity through a long-term contract. The partners are now actively
marketing possible expansion capacity to potential third-party customers.
Investment by the joint venture partners for the rail terminal will total
approximately $170 million. In addition, Kinder Morgan will invest
approximately $100million in pipeline connections and two new staging tanks
to be constructed within the Kinder Morgan Edmonton storage facility.
Construction is now underway and completion is scheduled for December 2014.
About Imperial Oil
Imperial Oil is one of Canada’s largest corporations and a leading member of
the country’s petroleum industry. The company is a major producer of crude oil
and natural gas, Canada’s largest petroleum refiner, a key petrochemical
producer and a leading marketer with coast-to-coast supply and service station
About Kinder Morgan
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline
transportation and energy storage company and one of the largest publicly
traded pipeline limited partnerships in America. It owns an interest in or
operates approximately 54,000 miles of pipelines and 180 terminals. The
general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Kinder
Morgan is the largest midstream and the fourth largest energy company in North
America with a combined enterprise value of approximately $105 billion. It
owns an interest in or operates approximately 80,000 miles of pipelines and
180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO
and other products, and its terminals store petroleum products and chemicals
and handle such products as ethanol, coal, petroleum coke and steel. KMI owns
the general partner interests of KMP and El Paso Pipeline Partners, L.P.
(NYSE: EPB), along with limited partner interests in KMP, Kinder Morgan
Management, LLC (NYSE: KMR) and EPB. For more information please visit
This news release includes forward-looking statements. These forward-looking
statements are subject to risks and uncertainties and are based on the beliefs
and assumptions of management, based on information currently available to
them. Although Kinder Morgan believes that these forward-looking statements
are based on reasonable assumptions, it can give no assurance that such
assumptions will materialize. Important factors that could cause actual
results to differ materially from those in the forward-looking statements
herein include those enumerated in Kinder Morgan’s reports filed with the
Securities and Exchange Commission. Forward-looking statements speak only as
of the date they were made, and except to the extent required by law, Kinder
Morgan undertakes no obligation to update or review any forward-looking
statement because of new information, future events or other factors. Because
of these uncertainties, readers should not place undue reliance on these
Kinder Morgan Energy Partners, L.P.
Andrew Galarnyk, (855) 514-6692
Leanne Dohy, (403) 237-2710
John Charlton, (403) 237-4537
Manager, Investor Relations
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