The facility, which will be situated next to the region’s first crude-by-rail unit train terminal built by Canexus, will allow the company to ship raw bitumen from the oil sands by rail.
The new facility, which is expected to be operational by late 2015, will allow MEG to extract condensate from blended bitumen that is delivered by pipeline from its Christina Lake site.
MEG Energy spokesman Brad Bellows was quoted by Reuters as saying that the company is looking to ship undiluted bitumen.
"That increases our shipping capacity and the value of each barrel," Bellows added.
Bruderheim terminal of Canexus is due to start shipping 50,000 barrels per day of crude in December and plans are underway to expand to 100,000 bpd by the second half of 2014.
