Calgary-based midstream firm Keyera Corp. is stepping out into operations in the United States with plans for a new crude oil storage and blending terminal in the heart of the Midwest refining market.
The Wildhorse Terminal will be located in Cushing, OK, and will have 4.5 million barrels of working storage capacity, the company announced on Tuesday. It has an estimated capital cost of US$205 million.
It will be developed in partnership with Czech Republic-based Lama Energy Group, which will hold 10 percent stake in the facility with option to increase ownership to 30 percent by the end of this year.
Cushing is the refining capital of US PADD 2, the destination point of the majority of Canadian oil imported into the U.S.
About 60 percent of Canadian crude exports (or 1.89 million bbls/d) ended up in PADD 2 in February 2018, according to the latest data from the National Energy Board.
PADD 2 is the second largest refining cluster in the U.S. after the U.S. Gulf Coast, with approximately 4 million bbls/d of processing capacity.
The Wildhorse terminal will expand Keyera’s midstream infrastructure, extend its crude oil value chain and provide significant opportunities to capture marketing margins through its logistics and commercial expertise, CEO David Smith said in a statement.
As a result of the investment Keyera has increased its 2018 growth capital forecast to between $1.0 billion and $1.1 billion, up from $900 million to $1.0 billion previously.