terminal news
Kinder Morgan increasing Canadian storage capacity Kinder Morgan Energy Partners’ daughter company, Kinder Morgan Canada Terminals, is to build more storage capacity at Trans Mountain Pipeline’s Edmonton terminal in Alberta, Canada, after entering into long-term contracts. Construction on the additional 1.2 million barrels of merchant storage capacity, expected to cost in the region of $112 million (€84 million), will begin later this year following the receipt of supporting permits. The work, which is Phase II of an expansion project, is expected to be completed next year. Phase I of the expansion is already underway. This consists of 3.6 million barrels of new storage and, according to Kinder Morgan, will begin operations towards the end of this year.
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The total capital investment for the combined 4.8 million barrel project is approximately $400 million and is supported by longterm contracts with major producers and refiners. When completed, the total storage capacity at the Edmonton facility will be 9.4 million barrels, including the existing Trans Mountain system facility and the North 40 merchant terminal. ‘The new tanks further demonstrate the strategic importance of Trans Mountain’s Edmonton hub and the role it will play in staging Western Canadian crude oil production into export markets, including West Coast markets served by Trans Mountain’s Pipelines,’ Bill Henderson, VP of Kinder Morgan Canada Terminals, said in a statement.
Norterminal signs land lease agreement for storage terminal Norterminal is developing a storage terminal in Finnmark, Norway and this month signed an agreement with landowner Finnmarkseiendommen (FeFo) for a long-term lease of 100 acres of land along the coastline of Gamneset. Norterminal believes this to be an ‘optimal location’ to build a large-scale oil, petroleum or gas terminal. The agreement is conditional upon the areas being reregulated for industrial use, which has already begun. Jacob Stolt-Nielsen, Norterminal’s president, comments: ‘The discussions with FeFo have given us a better understanding of the needs of the Finnmark community, which is important for the future development of Norterminal. The negotiations have been positive and we look forward to continue the cooperation.’ Operations at the terminal are planned to start in 2017, when it will take advantage of the growing future production expected from the Barents Sea and Arctic regions. The company says it wants to establish a state-of-the-art regional transhipment and storage terminal with the highest operating standards. Norterminal estimates the terminal will cost between NOK2-4 billion (€270-535 million) to build, creating many new jobs during construction and start-up.
March/April 2013 • TANK STORAGE