Train in Quebec wreck carried crude sold by World Fuel Services

Mon Jul 8, 2013 5:57pm EDT
 
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(Reuters) - World Fuel Services Corp said on Monday crude oil sold by one of its subsidiaries was being carried by railcars involved in the deadly train derailment in Lac-Megantic, Quebec over the weekend.

The runaway oil tanker train derailed in Lac-Megantic shortly after 1 a.m. on Saturday, exploding in a deadly ball of flames and killing at least five people, with another 40 still missing and feared dead.

The train was carrying crude from North Dakota to Irving Oil's refinery in New Brunswick.

"The railcars involved in the incident were carrying crude oil sold by one of our subsidiary companies and destined for Irving Oil in Saint John, New Brunswick," the Miami-based fuel distribution company said in a statement.

Affiliates of World Fuel Services have a partnership with Dakota Plains Holdings, an midstream energy company, in providing crude oil off take services including marketing, transloading of crude oil, according to a Dakota Plains press releases. Dakota Plains specializes in shipping and marketing crude from the Williston Basin of North Dakota, according to the company website.

Shares in World Fuel Services fell 5.8 percent on Monday, the biggest daily percentage decline since February 22, according to Reuters data.

Ed Burkhardt, chairman of Montreal, Maine & Atlantic Railway (MMA), which owns the line, said in an interview with Canada's CTV on Monday that the cars involved in the accident had been leased by the supplier of the fuel.

World Fuel Services has also been awarded jet fuel contracts for the military in the past, most recently a contract for up to $16.75 million on June 10, according to the U.S. Department of Defenes website.

(Reporting by Matthew Robinson; Editing by Marguerita Choy)