CALGARY, Alberta, Jan 23 (Reuters) - Kinder Morgan Energy Partners LP is adding oil storage tanks at the Edmonton terminal to serve a planned C$5.4 billion ($5.4 billion) expansion of its Trans Mountain Pipeline between Alberta and Vancouver, the company said on Wednesday.
A company statement said it has long-term contracts to support 1.2 million barrels of new storage. Construction of the C$122 million project, which comes on top of a 3.6 million barrel expansion currently under way, is expected to be complete in late 2014.
When both expansions are in place, the terminal will have 9.4 million barrels of storage capacity. It will be the second-largest oil hub in Alberta, behind Hardisty, which has more than 17 million barrels of storage space.
The project follows a Kinder Morgan announcement on Jan. 10 that it would increase the size of a planned expansion of its Trans Mountain line by a third, to 890,000 barrels per day, after signing up more oil companies looking to export crude to international markets through the Port of Vancouver.