Kinder Morgan Canada Terminals has inked a deal to add an additional 1.2 million barrels of merchant oil storage capacity at Trans Mountain pipeline's Edmonton terminal in Strathcona County, Alberta.
The firm said it has entered into a long-term contract with a major Canadian producer to expand the terminal, but did not name the company.
The total value of the expansion is $284m with 3.6 million barrels of storage capacity expected to be in service by the end of 2013.
Kinder Morgan Canada Terminals vice president Bill Henderson said: "This increase in storage capacity demonstrates the importance and flexibility of Trans Mountain's Edmonton storage hub, and the unparalleled upstream and downstream connectivity inherent in the location of the facility."
Kinder Morgan Canada president Ian Anderson said: "The Edmonton hub will also play a very important staging role for crude oil in the Trans Mountain pipeline expansion proposal."
The company is currently in talks with other companies for further expansion to accomodate over 6 million barrels of dedicated storage at the terminal.
Kinder Morgan Canada is the operator of both Trans Mountain and the Edmonton terminal, which has 20 incoming feeder lines from throughout Alberta and comprises 19 storage tanks with an overall volume of 390 000 m3.