KKR to invest C$250M in Torq Energy Logistics
Torq Energy Logistics, an affiliate of privately held Torq Transloading Inc, said on Tuesday that private equity firm KKR & Co has agreed to invest C$250 million ($236 million) to fund Torq's capital program and acquisition strategy.
Calgary-based Torq, which operates half a dozen transloading terminals in the western Canadian provinces of Alberta and Saskatchewan, is attempting to expand rapidly to cash in on the crude-by-rail boom.
Earlier this year, Torq announced that it was developing a roughly C$100 million terminal in Kerrobert, Saskatchewan. The terminal is being engineered to handle two, 120 car unit trains per day, or up to 168,000 barrels per day.
The terminal, which is to be served by Canadian Pacific Railway Ltd, is being designed to handle truck delivered volumes, as well as both light and heavy crudes delivered via pipelines.
The transaction, which is subject to closing conditions and regulatory approvals, is expected to close in January 2014. Upon closing, three members of KKR's energy and infrastructure unit will join Torq's board.