TransCanada Corp (TRP.TO) plans to build a new crude oil storage facility in Cushing, Oklahoma in partnership with M2 Infrastructure LLC, an affiliate of U.S. private equity firm Lone Star Capital, M2 said on Wednesday.
The facility will be able to store 6.2 million barrels of crude oil and will be located at TransCanada's terminal in Cushing, M2 said, adding TransCanada will operate the storage.
M2, which provides storage options to oil and gas producers and refiners, will own the storage. The project is expected to begin in late 2017, M2 said.
The deal between M2 and TransCanada includes an option to build up to 20 million barrels of storage, M2 said.
Macquarie Capital is M2's financial adviser.