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(Reuters) - Canadian Pacific Railway (CP.TO) said on Thursday it will provide exclusive rail service to Unimin Corp to transport frack sand from a Wisconsin facility the industrial mineral producer expects to open in 2013.
The new facility in Tunnel City will produce two million tons of frack sand annually - used in the drilling industry in hydraulic fracturing - for markets in North Dakota, Texas, Colorado and elsewhere.
Financial terms of the multi-year deal with Unimin, a long-standing CP customer, were not disclosed.
Shale oil and gas producers uses frack sand in hydraulic rock fracturing, a drilling technique that involves the high-pressure injection of liquid underground. Frack sand is used to keep fractures open, allowing access to the oil or gas.
Canadian Pacific shares were up C$1.51, or 2 percent, at C$76.84 on the Toronto Stock Exchange on Thursday afternoon.
Reporting By Susan Taylor; editing by Rob Wilson