Suncor Energy is bringing in a northern Alberta aboriginal band as partner in a $1-billion storage facility being built to serve its Fort Hills oilsands project.
The Calgary-based company says the Fort McKay First Nation will pay about $350 million when its new tank farm becomes operational next spring in return for a 34 per cent interest.
Chief Jim Boucher says the band expects long-term benefits from the investment. Closing is dependent on Fort McKay obtaining financing.
Suncor (TSX:SU) is to own and operate the tank farm on behalf of the Fort Hills partnership, which includes Suncor, Total E&P Canada and Teck Resources (TSX:TCK.B).
READ MORE: Suncor going ahead with Fort Hills mine
The $13.5-billion Fort Hills project is scheduled to produce first oil in late 2017 and achieve 90 per cent of its planned production capacity of 180,000 barrels per day within 12 months.
The tank farm will consist of bitumen storage, blending and cooling facilities and connections to third-party pipelines.
© 2016 The Canadian Press