Keyera Corp. reported that it will be proceeding with construction of the Keyera South Cheecham Rail and Truck Terminal, located approximately 75 kilometres southeast of Fort McMurray. The Terminal will be a multi-purpose hydrocarbon rail and truck terminal, designed to support bitumen producers within the Athabasca oil sands area.

Keyera previously announced that it was exploring the development of a terminal in the South Cheecham area subject to sufficient customer interest in the project. Today, Keyera entered into a minimum four-year fee-for-service agreement with Statoil Canada Ltd. which is sufficient to underpin the construction of the first phase of the Terminal. The agreement with Statoil includes provision for Keyera to provide diluent, dilbit and solvent terminalling services through the Terminal. In addition to the Terminal, Keyera will construct and operate pipeline connections between the Terminal and Statoil and partner PTTEP's Cheecham Terminal, approximately 12 kilometres north. Keyera will begin receiving revenue under the Statoil agreement upon start-up of the Terminal in 2013.

Tags: Keyera Corp.