Suncor and the Fort McKay First Nation are signing a participation agreement for the East Tank Farm Development.
Under the terms of the agreement, Fort McKay First Nation will pay 34.3 per cent of the actual capital cost of the East Tank Farm Development once the assets become operational, which is expected to be in the second quarter of 2017.
Chief Jim Boucher of the Fort McKay First Nation says the deal clearly shows industry that their people are integral players in business and they have the ability and means to build strong relationships.
The tank farm is currently under constuction in Wood Buffalo and will consist of bitumen storage, blending and cooling facilities and connectivity to third party pipelines.
Suncor will be the operator of the East Tank Farm Development once operational but revenue from the long-term terminaling services agreements with the Fort Hills partners will underpin Fort McKay First Nation’s independent financing of the transaction.
The 34.3 per cent share of the actual cost is estimated to be $350 million and is subject to conditions.