Canadian midstream company to build Cushing, OK, terminal

By Patrick C. Miller | May 18, 2018

Calgary-based Keyera Corp. announced plans to develop the Wildhorse Terminal—a 4.5-million-barrel crude storage and blending facility—at Cushing, Oklahoma, which is expected to enter service by mid-2020.

Wildhorse will initially be connected by pipeline to two existing storage terminals at Cushing. These connections will provide Keyera’s customers with access to the majority of the crude oil streams flowing in and out of Cushing on several major pipeline networks.

"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," said David Smith, Keyera's president and CEO.

The Wildhorse Terminal will include 12 above-ground tanks. Most of the capacity is backed by fee-for-service, take-or-pay storage arrangements ranging from two to six years.

According to Smith, "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's U.S. subsidiary, Keyera Energy Inc., will oversee construction of the terminal and operate Wildhorse once it’s in service. An affiliate of Lama Energy Group will own 10 percent of the project.

Based on current capital estimates, Keyera expects its share of the capital costs to be approximately $185 million. Lama Energy Group will have the option to increase its ownership to up to 30 percent by the end of 2018.

Keyera Corp. operates an integrated Canadian-based midstream business with interconnected assets and expertise in midstream energy solutions. Its predominantly fee-for-service based business consists of natural gas gathering and processing, natural gas liquids processing, transportation, storage, marketing, iso-octane production and sales, and a condensate system.