Suncor Energy divests another chunk of its East Tank Farm
Mikisew Cree First Nation (MCFN) has agreed to pay $147 million for a 14.7% interest in Suncor Energy's East Tank Farm, currently under construction near the company's Base Plant operations just north of Fort McMurray. The East Tank Farm will provide bitumen blending and storage for the soon-to-be completed Fort Hills Oil Sands Mine.
Under the terms of the deal, MCFN will pay the capital once the tank farm becomes operational, which is expected by mid-2017. Fort Hills is expected to begin commissioning at the end of next year, ramping up to full production in the first quarter of 2018. The project has a nameplate capacity of 180,000 bbl/day of marketable diluted bitumen.
This is the second First Nations partnership announced by the company in the past few months. Fort McKay First Nation purchased a 34.3% interest for $350 million for the same tank farm in early September.
Suncor Energy retains a 51% interest in the East Tank Farm and will operate the facility once construction is completed.