Keyera Corp. has agreed to buy ExxonMobils NGL
midstream rail and truck terminal located near the storage hub
in Mont Belvieu, Texas, the companies said on Monday.
Total cost of the acquisition and phase one modifications
are anticipated to be approximately $10-15 million, according
The facility is located in Hull, Texas and is connected via
pipeline with ExxonMobils Beaumont complex and Daisetta
storage facility, and other NGL facilities near the Mont Belvieu
The terminal is expected to be used initially to handle receipt
and delivery of propane, butane, iso-butane and NGL mix for
delivery into North American markets.
The transaction is subject to satisfaction of due diligence
and other normal closing conditions.
The terminal is an ideal fit with our existing
infrastructure, said David Smith, chief operating officer
Dedicated rail facilities near Mont Belvieu,
combined with our rail infrastructure in Edmonton and South
Cheecham in the heart of the Alberta oil sands, will allow us
to enhance the logistics associated with the movement of
propane, butane and condensate.
Access to high-value markets in the US and Canada is
expected to provide additional new growth opportunities for
The acquisition includes approximately 39 acres of land,
four rail and six truck loading spots, and NGL storage
Keyera said it currently plans to develop and expand the
terminal in phases, as demand for terminal and logistics
Completion of the first phase, to reconfigure and place the
existing equipment back into service, is expected in the first
half of 2013, assuming no change in timing of execution or
scope of work.
Options for future phases include expanding the rail loading
and offloading capacity, adding additional pipeline
connections, and expanding the storage capability in order to
expand NGL activities or handle other products such as
condensate and diluted bitumen.