M² Infrastructure LLC signed a Memorandum of Understanding with TransCanada Corp. to build 6.2 million barrels of new crude oil storage at TransCanada’s terminal in Cushing, Okla.

Cushing ranks among the most active crude oil trading hubs in the world, and the delivery point for the West Texas Intermediate futures contract listed on the Chicago Mercantile Exchange.

Cushing "pipeline crossroads of the world" monument.The new crude oil storage will be owned by M² Infrastructure and operated by TransCanada. M² said in a statement that it has an option to build up to 20 million barrels of storage, which would be built in 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 Matrix Markets, to sell storage capacity through on-line auctions of futures contracts and/or physical forward agreements.

Some 85 million barrels of crude oil storage tanks are located in and around Cushing.

Major storage owners include:

• Magellan Midstream Partners, 7.8 million barrels
• Enbridge Energy Partners, 20 million barrels
• Enterprise Products, 3.1 million barrels
• JP Energy, 3 million barrels
• Plains All American Pipeline, 20 million barrels
• SemGroup, 7.6 million barrels