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M2 and TransCanada to build 6.2 Million Barrels of New Crude Oil Storage at Oklahoma Terminal

M2 Infrastructure LLC, March 16, 2017

M2 Infrastructure LLC (“M2 Infrastructure”) announced today that it has entered into a Memorandum of Understanding with TransCanada Corporation (“TransCanada”) to pursue construction of 6.2 million barrels of new crude oil storage at TransCanada’s terminal in Cushing, Oklahoma. Cushing is the most active crude oil trading hub in the world, and the delivery point for the West Texas Intermediate futures contract listed on the Chicago Mercantile Exchange (“CME”). The new crude oil storage will be owned by M2 Infrastructure and operated by TransCanada. M2 Infrastructure has an option to build up to 20 million barrels of storage, which would be built in subsequent phases. The project and option to expand are subject to completion of definitive agreements between the parties and obtaining required approvals and land rights. Construction of the crude oil storage is expected to begin in late 2017.

M2 Infrastructure plans to work with Matrix Global Holdings, the parent company of Matrix Markets, to sell storage capacity to its customers through on-line auctions of futures contracts and/or physical forward agreements. The auction program will be similar to the highly successful LOOP Sour auction developed by CME, LOOP LLC and Matrix Markets. “We are excited to continue transforming the way midstream operators bring efficiencies to their clients,” said J. Robert Collins, Jr., co-founder and Manager of M2 Infrastructure and Matrix Global Holdings. “This project’s unique position in Cushing, combined with the innovative excellence of Matrix, should provide the lowest cost, highest throughput, most liquid and most connected storage solution in the midcontinent – eliminating costly limitations of alternative storage programs.” “TransCanada is committed to developing energy infrastructure solutions in Canada and the United States and pursuing this opportunity fits well in our plans to provide enhanced flexibility to our customers,” said Paul Miller, TransCanada’s executive vice-president and president, Liquids Pipelines. Macquarie Capital has been engaged by M2 Infrastructure to serve as its financial advisor on the project.

About

M2 INFRASTRUCTURE LLC: Founded in 2016, M2 Infrastructure seeks to provide innovative storage solutions to its customers, which include producers, gatherers, refiners, global energy merchants, and commodity trading firms. Management is comprised of an experienced team of energy and financial market professionals, leveraging over 100 years of combined trading, logistics, and industry expertise. M2 Infrastructure is an affiliate of Lone Star Capital. Lone Star Capital (lonestarcapital.net) invests in, advises, and incubates companies in fin-tech and commodity sectors around the globe.

TransCanada: With more than 65 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and liquids pipelines, power generation and gas storage facilities. TransCanada operates a network of natural gas pipelines that extends more than 91,500 kilometres (56,900 miles), tapping into virtually all major gas supply basins in North America. TransCanada is the continent's leading provider of gas storage and related services with 653 billion cubic feet of storage capacity. A large independent power producer, TransCanada currently owns or has interests in over 10,700 megawatts of power generation in Canada and the United States. TransCanada is also the developer and operator of one of North America's leading liquids pipeline systems that extends over 4,300 kilometres (2,700 miles), connecting growing continental oil supplies to key markets and refineries. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. Visit TransCanada.com and our blog to learn more, or connect with us on social media and 3BL Media.


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