Keyera Energy Inc, a subsidiary of Keyera Corp, recently agreed to acquire a logistics and liquids blending terminal located near Tulsa OK.
The terminal receives, blends and delivers diluent, the majority of which is transported by pipeline from the Mont Belvieu TX area to the Chicago area, and ultimately into the Alberta market.
“This acquisition builds on Keyera’s focused investment strategy for the United States, where we are selectively extending our liquids infrastructure into key US liquids hubs,” said David Smith, Keyera’s president and chief executive officer.
The terminal also has exclusive access to a nearby rail-to-truck transloading facility. Subject to typical closing conditions, the acquisition is expected to close in the second quarter of 2018 for approximately $80 million, plus up to $10 million in additional consideration over five years.
Keyera is well positioned to fund the acquisition, along with its current growth capital program of $1 billion to $1.1 billion.
The company also recently said it is developing a crude oil storage and blending terminal in Cushing OK that will include 12 above-ground tanks with 4.5 million barrels of working storage capacity.
“The (Tulsa) terminal is situated approximately 50 miles from our recently announced Wildhorse development, providing opportunities for operations integration and commercial synergies,” Smith said.
“These assets, along with our Hull Terminal, provide the foundation for Keyera to execute a strategy in the US that is consistent with our proven strategy in Canada.”