Keyera will develop a crude oil storage and blending terminal called Wildhorse Terminal in Cushing, Oklahoma with a working storage capacity 4.5 million barrels.
The Canadian midstream company, which will own 90% of the Wildhorse crude oil terminal, expects its share of investment in the midstream project to be $185m.
The remaining stake of 10% will be owned by an affiliate of Czech Republic based private investment firm Lama Energy Group (LEG), which will have the option to raise it to up to 30% by the year end.
Keyera Energy, the US subsidiary of Keyera will oversee the terminal construction and will handle its operations upon commissioning, which is anticipated to be around mid-2020.
According to Keyera, the Wildhorse Terminal will feature 12 above ground tanks with the majority of the capacity supported by fee-for-service, take-or-pay storage arrangements ranging from two to six years in length.
Initially, the Wildhorse crude oil terminal will be connected through pipeline to two existing storage terminals at Cushing to enable customers access most of the crude oil streams flowing in and out of the city on several key pipeline networks.
Keyera president and CEO David Smith said: “The Wildhorse terminal is a strategic investment for Keyera as it expands our midstream infrastructure in the United States at one of the largest crude oil storage and trading hubs in North America.
“The terminal also increases our fee-for-service business, extends our crude oil value chain, and provides significant opportunities to capture marketing margins through the use of our logistics and commercial expertise.”
Keyera Energy has given an EPC contract to Matrix Service to provide the engineering, procurement, fabrication and construction services for the Wildhorse Terminal.
Matrix Service CEO John R. Hewitt said: “We are extremely proud to have been awarded this project, which is representative of our leading position in the design and construction of above ground storage terminals.
“We appreciate the opportunity Keyera has provided to us to support their business objectives of further enhancing and diversifying their liquids business.”