Kinder Morgan and Imperial Oil have announced plans to build a crude oil rail-loading terminal in Strathcona County, east of Edmonton.

The facility, to be called the Edmonton Rail Terminal, will be built in an industrial area about 500 metres southwest of Kinder Morgan’s Edmonton storage terminal, which is beside Imperial Oil’s Strathcona refinery.

The terminal will be able to load 100,000 barrels per day onto up to three trains, but may eventually expand to ship 250,000 barrels.

The rail line will connect to both Canadian National and Canadian Pacific rail lines, delivering crude materials across North America.

“This facility underlines the importance of our expanding Edmonton terminal hub and adds to our growing crude rail terminal network,” said Kinder Morgan vice-president Bill Henderson in a release.

“The facility will be built with state-of-the-art technology and will incorporate extensive safety and environmental protection features, and will be manned with trained personnel around the clock.”

Imperial Oil chairman Rich Kruger said the terminal will improve market access for Canadian crude.

Each company will invest roughly $170 million in the project, with the possibility of additional investment being made by other companies.

Construction is now underway, with completion scheduled for December 2014.