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US Development Group, Gibson Energy to build 140 kbpd crude-by-rail terminal in Alberta

US Development Group LLC (USDG), a Houston-based developer of rail logistics and terminal facilities and Gibson Energy Inc., a Calgary-based midstream energy company, have partnered to expand USDG’s crude-by-rail development to Canada and increase transportation options for Gibson’s Hardisty Terminal customers. Gibson and USDG have jointly secured sufficient customer term commitments to construct a new unit train rail loading facility near Hardisty, Alberta, with pipeline connectivity from Gibson’s Hardisty Terminal.

The Hardisty Rail Terminal will handle multiple grades of crude oil with an initial capacity of 140,000 barrels per day (bpd). All crude handled by the Hardisty Rail Terminal will be exclusively transferred by pipeline from Gibson’s Hardisty Terminal, located approximately five kilometers away. Served by the Canadian Pacific Railroad’s North Main Line, the Hardisty Rail Terminal will provide Canadian oil producers and marketers a method for transporting their product to major refining and distribution markets across North America.

The Hardisty Rail Terminal will be capable of handling two unit trains per day of up to 120 railcars each and will consist of a fixed loading rack with 30 railcar loading positions, plus a unit train staging area and loop tracks capable of holding up to five unit trains. The Hardisty Rail Terminal is targeted to begin operation in the first quarter of 2014.

As part of the project, Gibson will install required pumping equipment and construct a pipeline for the transfer of crude from its Hardisty Terminal to the USDG crude-by-rail facility. Term contracts with four investment grade customers for approximately 100,000 bpd and a connection agreement between Gibson and USDG provide the support for the capital investment.

Comments

ejj

North American crude...yes!

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