Keyera to provide oil sands services to Husky Oil
Keyera Facilities Income Fund has entered into a long-term agreement with Husky Oil Operations Ltd. to provide diluent transportation, storage and rail offload services in the Edmonton/Fort Saskatchewan, Canada, area for the proposed Husky-operated Sunrise oil sands project. This agreement will provide Keyera with secure, long-term, fee-for-service revenues and complements the diluent services agreement Keyera signed in 2009 with Imperial Oil for their Kearl oil sands project.
Under the terms of 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 60 km 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 be utilizing capacity in the new pipeline and pumping infrastructure it is constructing in order to provide similar services to Imperial Oil for their 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.
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