U.S. Development Group and Gibson Energy have partnered to expand USDG’s crude-by-rail development to Canada, in turn boosting transportation optionality for Gibson’s Hardisty Terminals customers in Alberta.
USDG, a Houston-based developer of rail logistics and terminal facilities, and Gibson Energy, an Alberta-based energy company, have jointly secured customer term commitments to construct a new unit train rail loading facility near Hardisty, Alberta, with pipeline connectivity from Gibson’s Hardisty Terminal. Gibson will install required pumping equipment and construct a pipeline for the transfer of crude from its terminal to the USDG facility. Term contracts with four customers for approximately 100,000 barrels per day and a connection agreement between Gibson and USDG provide the support for the capital investment.
The Hardisty Rail Terminal, served by Canadian Pacific’s north main line, will handle multiple grades of crude oil with an initial capacity of 140,000 barrels per day. Furthermore, the rail terminal will be capable of handling two unit trains per day of up to 120 railcars each. It will consist of a fixed loading rack with 30 railcar loading positions, plus a unit train staging area and loop tracks capable of holding up to five unit trains.
The Hardisty Rail Terminal is targeted to begin operation in the first quarter of 2014.