Keyera Facilities Income Fund has entered into a long-term agreement with Husky Oil to provide diluent transportation and storage services in the Edmonton/Fort Saskatchewan area for the proposed Husky-operated Sunrise Oil Sands Project.
Under the agreement, Keyera will transport diluent by pipeline from supply sources in the Edmonton area to a diluent transportation pipeline inlet north of Fort Saskatchewan for further delivery to the Sunrise site, located 60km northeast of Fort McMurray.
Keyera will also provide diluent storage and rail offload services at the Alberta Diluent Terminal and the Edmonton Terminal, both owned 100% by Keyera, as well as at the Keyera-operated Fort Saskatchewan Fractionation and Storage Facility.
In addition to utilizing its existing facilities, Keyera will utilize capacity in the new pipeline and pumping infrastructure it is constructing in order to provide similar services to Imperial Oil for its Kearl oil sands project.
Keyera expects to begin receiving fee-for-service revenues associated with the agreement with Husky in early 2014.
The agreement is subject to full sanctioning of the Sunrise Oil Sands Project by Husky and its partners.