facebook
twitter
search
search

Kinder to expand crude oil capacity at Edmonton rail terminal

Facility should be in service by late 2014, first quarter 2015.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   Aug. 8, 2014 at 8:46 AM
| License Photo

HOUSTON, Aug. 8 (UPI) -- Midstream company Kinder Morgan said it reached a deal to add more crude oil carrying capacity to a rail terminal in Edmonton already under construction.

Kinder, which has headquarters in Houston, said it agreed with its joint venture partner Imperial Oil Ltd. to take on more take-or-pay contract agreements that would allow for the expansion of the rail terminal.

"The continued interest in this facility, and additional volume being contracted for with this announcement, further demonstrates how important it is for our customers to secure crude oil take away capacity using a variety of transportation options, including both pipeline and railway capacity to ensure crude oil reaches market," Kinder Morgan Terminals President John Schlosser said in a statement Thursday.

The rate of increase in oil production in North America is more than the existing pipeline network can handle. Industry officials say that leaves rail as the primary alternative for crude oil shipments.

The Edmonton rail terminal is a year into construction. It should be completed by the end of the year and then increase its capacity from 210,000 barrels per day at start up to as much as 250,000 bpd.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
B-52 bombers demo long reach of U.S. air power
Army orders tactical trucks from Oshkosh
Raytheon wins IDIQ contract for Army sensor systems
Airbus Helicopters joint venture with Mahindra Defense in India
Harris Corporation announces new business structure