Suncor Energy is bringing in a northern Alberta aboriginal band as partner in a $1-billion storage facility being built to serve its Fort Hills oilsands project.

The Calgary-based company says the Fort McKay First Nation will pay about $350 million when its new tank farm becomes operational next spring in return for a 34 per cent interest.

MORE BUSINESS NEWS | Enbridge buying Spectra Energy for $37B in stock to create pipeline giant

Chief Jim Boucher says the band expects long-term benefits from the investment. Closing is dependent on Fort McKay obtaining financing.

Fort McKay First Nation is buying a 34% interest with its $350 million investment in Suncor's Fort Hills oilsands project. (Reuters)

Suncor is to operate the tank farm on behalf of the Fort Hills partnership, which includes Suncor, Total E&P Canada and Teck Resources.

The $13.5-billion Fort Hills project is scheduled to produce first oil in late 2017 and achieve 90 per cent of its planned production capacity of 180,000 barrels per day within 12 months.

The tank farm will consist of bitumen storage, blending and cooling facilities and connections to third-party pipelines.