Canada railway to help build oil-loading terminal
(Reuters) - Canadian National Railway Co and Tundra Energy Marketing said on Thursday they will construct a railcar-loading terminal for Bakken crude oil producers in the Canadian provinces of Manitoba and Saskatchewan.
The terminal will initially load 30,000 barrels of crude oil a day into rail cars, equal to more than 50 tank cars worth, starting in the second quarter of 2013.
The facility will have the potential to accommodate a train consisting of 100 tank cars. Each train could carry about 60,000 barrels per day of crude oil.
The project will provide producers with "access to alternative North American markets for Williston Basin crude oil over CN's network at a time when there is inadequate pipeline takeaway capacity," said Bryan Lankester, president of Tundra, a company that handles crude on behalf of producers.
CN, along with other North American railroads, have experienced an exponential increase in crude shipments in the past few years as production booms, pipelines approach full capacity and rails are able to give producers access to higher-priced Brent crude oil markets.
CN, Canada's largest railroad company, repeated that it expects to move more than 30,000 carloads of crude oil in 2012 and that it could double that in 2013.
(Reporting By Nicole Mordant in Vancouver; Editing by Kenneth Barry)
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