Keyera Corp. subsidiary Keyera Energy Inc. agreed to acquire a logistics and liquids blending terminal near Tulsa, Okla., for a total consideration of $90 million.
The terminal handles the receipt, blending and deliveries of diluent, which is a refined product used in pipelines to transport viscous crude oil more efficiently. The diluent is then transported via pipeline to Mont Belvieu, Texas, and Chicago, to ultimately reach markets in Alberta, according to a May 24 news release. The terminal has exclusive access to a rail-to-truck transloading facility.
The asset is also located about 50 miles from the Wildhorse terminal, a new 4.5 million-barrel crude oil storage and blending terminal Keyera is developing in Cushing, Okla. The acquisition is part of Keyera's U.S. investment strategy involving an expansion of its liquids infrastructure into key U.S. liquids hubs, according to Keyera President and CEO David Smith.
The deal consideration includes $80 million upon closing, and an additional $10 million to be paid over five years. The deal is scheduled to close in the second quarter.
