Developer of rail logistics and terminal facilities US Development Group (USDG) and midstream energy company Gibson Energy have joined forces to expand USDG's crude-by-rail development to Canada and increase transportation option for Gibson's Hardisty terminal customers.
Gibson said it received sufficient customer term commitments to build a new rail loading facility near Hardisty, Alberta, with pipeline connectivity from Gibson’s Hardisty terminal.
The company will install required pumping equipment and construct a pipeline to carry crude from its Hardisty terminal to the USDG crude-by-rail facility.
Term contracts have been signed with four investment grade customers for approximately 100,000 barrels per day.
Gibson operations senior vice-president Rick Wise said, "We continue to progress discussions with several customers in conjunction with USDG regarding further commitments to the Hardisty Rail Terminal."
Initially, the Hardisty rail terminal will handle 140,000 barrels per day of multiple grades of crude oil.
It will be served by the Canadian Pacific (CP) Railroad’s North Main line and all the crude will be moved from Gibson’s Hardisty terminal by a pipeline.
CP Energy and Merchandise vice-president Tracy Robinson said, "The Hardisty Rail Terminal will be a significant rail hub and is located on CP’s high-capacity north main line with efficient access to the refining markets across North America."
The facility is scheduled to begin commercial operations in the first quarter of 2014.