July 2, 2012

New rail and truck terminal planned

Keyera Corporation is moving forward with the construction of a multi-purpose rail and truck terminal about 75 kilometres southeast of Fort McMurray to support bitumen producers within the Athabasca oilsands area.

“This investment at the Keyera South Cheecham Terminal will strengthen our position in this region and enhance our ability to provide services to oilsands producers such as Statoil,” said Jim Bertram, chief executive officer of Keyera.

“The terminal represents the next step in the development of our oil sands services growth strategy as we continue to deliver on our commitment to provide various cost effective services to oilsands producers.”

Keyera recently entered into a minimum four-year fee-for-service agreement with Statoil Canada Ltd., which is sufficient to support the construction of the first phase of the terminal.

The agreement with Statoil includes provision for Keyera to provide diluent, dilbit and solvent terminal services.

Engineering and site preparation for the first phase of development are already underway. Completion of the first phase is expected in the first half of 2013 at an estimated cost of about $90 million.

Delivery of equipment and construction delays are the key variables in achieving the on-stream date. Under the terms of a Memorandum of Understanding with Enbridge Inc., Enbridge may elect to participate in the Terminal as a 50 per cent joint venture partner. In addition to the terminal, Keyera will construct and operate pipeline connections between the terminal and Statoil and partner PTTEP’s Cheecham Terminal, about 12 kilometres north.

Keyera will begin receiving revenue under the Statoil agreement upon start-up of the terminal in 2013.

JOC NEWS SERVICE

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